Buying Property in Spain - An Overview
- Find a good local lawyer, that speaks Spanish and your language if you don't speak Spanish well yourself
- Once you have found a re-sale property you wish to buy and the offer has been accepted, it is recommended you sign a preliminary reservation deposit agreement with the seller and pay a reservation deposit, usually between 3.
000 EUR and 6.
000 EUR.
This agreement confirms that the property has been taken off the market, enabling you to prepare all paperwork with your solicitor - In the case of new build developmentspurchased directly from the developer, you are normally required to sign a reservation deposit form for a mutually agreed period during which time all the paperwork is prepared.
In both cases a full refund is made less a small administration charge in the event that the purchase cannot proceed due to legal reason outside the control of you, the buyer.
No refunds are given in the event you do not complete of your own accord - Normally your solicitor has between 15 and 30 days to retrieve all information on the property regarding land register, legal issues, if any, and the 'license of first occupation'.
This verifies that the title deeds for the property are satisfactory and that the vendor is authorised to transfer ownership.
Checks should be made by your solicitorto guarantee that the property is free from pending charges, mortgages or debts.
Any debts must be completely settled before legal ownership is transferred - If purchasing a plot of land a survey of the land should be carried out to obtain its exact measurements and to identify boundaries.
This study will include details on whether the land has been classified as buildable, on its access points and on its surface area.
In addition, it will provide information on the different building possibilities and on the buildable area, including a detailed plan that will form part of the final title deed - In the event you purchase a property in the process of being built, then your lawyer should check that the land has had a geological survey, that the builder has taken out a 10 years building warranty insurance.
In addition the builder should provide evidence of a DIA (Documento informative Abreviado).
This provides all details of the building design, features, prices, plumbing, wiring, legalities of building licence, property registration etc.
The DIA should also confirm that all payments are protected by bank guarantees - Once the financial and legal checks on the property have been made enabling the purchase to proceed, you sign the Contrato Privado de Compraventa (Private Contract).
The Private Contract confirms legal legitimacyon the buyer and the seller, the description of the property on the land register, the price of the sale, the method of payment, the date the completion date, the date you take possession of the property, etc. - Once both parties have signed the Private Contract and the first paymenthas been paid and cleared, usually 10% of the price of the property minus the reservation deposit, the contract becomes a legally binding document.
Usually up to 30% or 40% of the off plan total price is paid in installments.
The balanceis normally paid by a mortgage - Completion.
The property sale process is finalised by signing in the presence of a Notary, with the buyer and seller signing the Deed of Sale.
The Notary is a public official.
The Notary confirms the identity of (you) the buyer and the seller, and ensures that all legal requirements have been met and that the amount due to be paid has been settled.
Immediately after the deeds have been signed, you will be handed the property keys, and can take possession of the property. - Final title deeds and property registration.
Payment of all taxes and obtaining the final register stamp for the Title Deeds guarantees the transfer of the property.
This procedure may take 2 to 3 months depending on the Property Register - Utilities.
Immediately after the sale has been finalised your lawyer then ensures that all the property's utility contracts (electricity, water, refuse collection, etc.
) are under your name.
You will need to ensure all your bills are to be paid by direct debit to your account or we suggest you employ the services of an accountant (gestoria) to do this - Enjoy your new home!
However, as the guide contains mere summary references to some general and specific laws of Spain, the author and Rent2buy-properties will not accept responsibility or liability for error, omission or liability arising from the consequences of using or relying on the information contained in this article.
