Spanish Property Guide - Buying Property In Spain
Section 2: The Spanish Property Buying Process
Paying The Deposit
To reserve the property and take it off the market you will be asked to pay a deposit. The amount varies according to the value of the property but as a guideline a typical “reservation” may be €3,000 to €6,000 and a full purchase deposit may be 10% of the purchase price.
The Land Registry - Registro de la propiedad
The Land Registry plays an important part in the purchase procedure as almost all land and properties in Spain are now registered.
Your lawyer will make a search in the local Land Registry for office copy entries (Nota Simple) of the previous owner’s Title Deeds, and obtain a statement from the Registry, which will show who the legal owner is and whether there are any charges or encumbrances on the title, for instance, it could be mortgaged.
The Town Hall - Ayuntamiento
Checks are made at the Town Hall to ensure that the Council Tax (Impuesto sobre Bienes Inmuebles IBI) has been paid up to date. A receipt is required for the most recent Council Tax payment.
We also check with the Town Hall to verify that the property has the necessary building permit and that it complies with the local planning and building regulations. Some of these procedures are extremely complex and will be clarified to you as and when they arise in the conveyancing process.
A Survey
Although it is the norm in the UK, it is not usual in Spain to have a survey carried out, although this is advisable if the property is a resale or a mortgage is being taken out.
Contract
You may be asked to sign a Reservation Contract which takes the property off the market for a short period of time in return for a small deposit (typically €3,000 to €6000). This contract should not commit you to buy the property but it worth getting your lawyer to check the contract before signing it because sometimes they do.
The usual practice is to sign a Private Purchase and Sale Contract (Contrato Privado de Compraventa) that shows the vendor’s and purchaser’s personal details, a description of the property, the price, method of payment, completion and possession dates. Signing this document and paying the deposit, generally 10%, commits the purchaser to pay the balance of the purchase price and the vendor to transfer ownership of the property.
Residents Association (Comunidad de Propietarios)Certification is needed from the Residents Association (Comunidad de Propietarios) that all Community charges have been paid up to date.
Water & Electricity
The lawyer will ensure that these services have been connected to the property and that they have been paid up to the date of completion. In the case of a new property the lawyer will ensure that the property has the appropriate certificate for habitation, which will enable the services to be connected.
Who is Buying the Property?
You will need to decide whose name the property will be registered in. We can advise you on the different options according to your personal circumstances and wishes. It is important to consider this issue carefully as getting this right can often save thousands of Pounds in taxes.
Completion
On the completion date the Purchaser(s) and the Vendor(s) sign the official Deed of Sale and Conveyance (Escritura Publica de Compraventa) before a Notary. The Purchaser has the right to select the Notary.
If you are unable to sign the Escritura personally in Spain we can prepare a Power of Attorney on your behalf, or someone you nominate. Alternatively we can arrange for you to sign it in our offices before an English Public Notary.
The money is paid either immediately before or when signing the Escritura.
The Notary retains the original of the Escritura that has been signed by all parties. The first copy of the Escritura should now be sent to the Land Registry for registration.
To jump to our other sections on the topic of buying property in spain, see below:
Section 1 - Do I Need a Lawyer?
Section 2 - The Spanish Property Buying Process
Section 3 - Spanish Property - Fees & Taxes
Section 4 - Spanish Property Buying Checklist
Section 5 - Spanish Wills & Inheritance
Should you wish to discuss any Spanish Legal Services, we offer a FREE No Obligation initial telephone consultation.
Please contact:
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Diego Rubio Tel.: 01494 670440 Email.: drm@chebsey.com |
