Introductory Information to Property Purchase in Spain
Here you can find a short introduction to miscellaneous things to have in mind when buying a property in Spain
Undoubtedly one of the most important decisions in a person’s life is the purchase of a property, be it for residential or holiday use. It is very important that prospective purchasers get independent advice from reputable agents before they make their purchase. It is also wise to deal with people you feel comfortable with who are prepared to give you the time necessary to help you make the right decision.
The process of making a purchase is quite simple.
Once you know where you wish to purchase and how much you wish to spend you should arrange an inspection trip, which lasts for about three days. This allows you time to look at a variety of properties and to compare one with another.
Before departing on a viewing trip to Spain you should notify your bank that you may need to place a deposit on a property while there. Your bank manager may suggest you bring a Eurocheque with you, which can be filled in while there.
Should you find a property that you like the next step is to appoint an Abogado (Spanish lawyer) and pay a non-refundable deposit of between 5% and 10% to the developer. Sometimes the deposits are smaller than this. This freezes the price of the property so you are not affected by any future price increases in the pipeline.
If you are unable to travel to Spain to sign a contract you may decide for convenience to grant your lawyer a Poder (power of attorney). Your solicitor will carry out the searches on an agreed date and check if there are any charges or encumbrances on the property and that there is a clear title deed.
Before purchasing a property in Spain a N.I.E.(foreign identity number)is required by all non-residents wishing to buy a property in Spain. Your Spanish lawyer can obtain this number for you.
A private contract will then be drawn up specifying all the relevant details of the property and the parties involved and this will be signed by the purchaser and the vendor. Usually 28 days from the deposit stage when the private contract is being signed another 40% to 50% will be paid. Then depending on the developer’s terms the balance of the purchase price is payable on agreed dates.
A sale is formally completed in Spain when the public title deeds of purchase are signed before a notary, the agreed purchase price paid and possession given to the buyer. The original signed documents are retained by the notary to be forwarded to the Registro de la Propiedad (Land Registry) to be registered in the purchasers name. Your lawyer may pay on your behalf all the relevant transfer taxes associated with the purchase and will handle the formalities of registration of your title deeds. He/She may also set up the accounts for utility services such as water and electricity and organize their payment through a local bank. You should discuss these matters with your lawyer when making a purchase.
