Purchasing Property in SpainO.K., you’re ready for purchasing property. You’ve decided on the area, have sifted through the endless real estate possibilities and have found a home that you and your family least disagree about! In anticipation of purchasing property here, of course, you have
organised your bank account and obtained your N.I.E. number.
So, this is it. You can now put in your offer.
Apart from the price offered you will need to be clear about when and how much you will pay in deposit and when you’ll be ready to complete. This is, naturally ´subject to contract`. By this time it´s a good idea to have your currency exchange prepared, too. Best to use a specialist such as HiFX they´ll help you get more money for your money. Check out their Currency Converter right now for their up-to-the-minute best rates. And this is where your lawyer comes on the scene. Recommended Lawyers List The process of purchasing property begins with a Land Registry search to ensure clear title and to do this the lawyer needs the Title Deeds to the property. The seller must also produce the last receipts for payment of council rates and for any utility bills. He must also provide a letter from the community president (if applicable) as proof the community fees are paid up-to-date. The lawyer will then draw up a private contract of sale which will include all the relevant sales-purchase details. Please note that when purchasing property all the charges (which add up to 8-10% of the purchase price) are generally for the buyer. But, the Plus Valia tax (a Town hall property tax) should be down to the seller … so, check with your lawyer that this item is going into the contract. At this stage a deposit (normally 10% and non-refundable) is handed over. It might be interesting for you to know that should the seller change his mind after the contract is signed then he, in Spanish law, is liable to repay twice the amount deposited by the purchaser. This system avoids any ´guzzumping`. The new deeds are then prepared for signature in front of the Public Notary and it is advisable also at the same time to get a will organised. This whole process takes about two or three weeks. If you are purchasing property with a mortgage then the process will take a little longer and the bank or mortgage company will duplicate most of the lawyers work. (Banks don’t usually take too many risks as we know, when handing our their money!) In fact, most Spaniards, if purchasing property with a mortgage will liaise directly with the bank and forego the lawyer, thereby saving themselves his 1% fee. But, as a non-Spanish speaker you’re best to stick with a legal representative. As far as mortgages are concerned it makes things easier if you have already done the necessary and have pre-qualified for a specific loan from the mortgage lender. After informing the bank of the property details they will send around a valuer whose fee will be about 150€ for an average dwelling. To cover this and other related charges it is normal that the mortgage applicant will be asked to deposit a sum of money up front. Then, finally, the big day dawns, you are all at the Notary, the Title Deeds are signed by buyer and seller and the monies and keys are exchanged. And now … it’s all yours … its official. But, before you relax there are just a couple more items. You’ll need to get your home insured and … you’ll need to get your locks changed - today.
Right,now you can sit back and ... enjoy!
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