Why do we pay a provision of funds?

After paying the last instalment to the vendor and receiving the keys, the registration process starts. Several parties are involved (bank, land registry, notary, lawyer) and usually a gestoría (Spanish administration company) will take care of the registration process. Since all parties will charge for their services, they are  provided with a provision of funds and will use this to pay the involved parties. Any balance will of course be returned to the client with a breakdown of how funds have been spent.