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Buyers Guide
Buying a property in Spain is a
major financial investment. While we have made every attempt
to ensure that the information
given below is correct, proper legal advice should always be
obtained before buying any property in Spain. We would strongly
recommend the use of a local Lawyer (Abogado).
There are two main types of properties these are:
Resale
These properties have already been built
so you can see what you are actually buying and how the area
itself has been developed.
With these properties you can also move in much sooner, many
of them are sold furnished.
New construction
In this instance you can choose
your own location, have a choice of different designs and if
you talk to the builders in the early
stages of construction these can sometimes be modified and specifications
altered to suit your personal preferences.
How do you
proceed with a purchase?
Reserving a property
The standard practise in
Spain is that you put down a non-refundable
deposit, usually
about £2000
to reserve the property.
In the case of a resale
or a completed property this is called an Option Contract
or Reservation Contract. This
document acts
as a signed receipt for the deposit and is normally valid for
30 days. This allows the purchaser’s legal representative
sufficient time to carry out the necessary searches.
In the case
of building a new property,
the Option Contract or Reservation Contract reserves the plot
of your choice allowing the lawyer sufficient
time to
carry out the necessary searches on the plot.
Option to Purchase
and the Purchase and Sale Contract
When the pre-purchase checks
have been completed these contracts state clearly the rights
and obligations
of both parties. It
is usual for the buyer and seller to
make a ‘"private
contract" with the buyer putting down a 10%
non-refundable deposit. This reserves the property and gives the buyer time
to transfer money into Spain or look at getting a Spanish mortgage.
If for any reason the seller pulls
out, the buyer can claim twice
the amount of the deposit back.
‘Remember never
pay any monies directly to the seller’
Conveyancing
Buying property in Spain is as
safe as in the UK, provided you have the appropriate legal assistance.
The Spanish legal system
is different from the UK and we would emphasise again the use
of a local Lawyer (Abagado).
The lawyer will handle all payments on behalf of the purchasers
and, subject to a Power of Attorney being granted them, will
sign over the deeds in favour of the purchasers. In the case
of construction, it is their responsibility to execute the Main
Contract.
For Resale Properties, the time period from having an offer
accepted, to the signing of the escritura (title deeds), can
be as little as 1 week but is typically more likely to be at
least 6-8 weeks. Your Lawyer will ensure that any contractual
agreements are also written in English as well as Spanish.
Notaries
Lawyers (Abogados or Gestores) must
not be confused with Notaries. The Notary´s function is
that of an impartial witness to the signing of all public documents
before their inscription
in the property registry. It is his responsibility to verify
title to the property before giving good faith.
Completion
of a purchase
When the final payment is made, the vendors, together
with the purchaser’s Lawyer, will sign over ownership of
the property before the Notary. The document is called the Escritura.
NIE
The NIE (Foreigners Identity Number) is
given to all non-residents buying a property in Spain. This is
applied for at designated
Police Stations. A passport sized photograph will be needed
Taxes and Fees
In addition to the purchase
price you should budget for an additional 8-10% to cover all
taxes
and fees.
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