Buying Property in Spain
INTRODUCTION
Elitea provides its clients with information about buying property in Spain. We also assist you with legal advice about mortgages in Spain, and arrange viewing visits so you may see our properties before you decide on buying property in Spain. Please select from the links below for more information about each of our property purchasing services in Spain.
THE FIRST STEP
Always use an established real estate agent who will provide the experience to answer all your questions and guide you through the negotiations and procedures to the completion of your purchase.
HOW DO I BUY THE PROPERTY?
To purchase property in Spain is as easy as anywhere else in the world. As it might be different from what you are used to at home, you should always use a lawyer right from the outset. The extra fees incurred are inexpensive insurance against possible future problems. The following is an example of a standard property purchase procedure.
purchasing property spain
RESERVATION AGREEMENT
Normally the purchase is initiated with a reservation agreement, which takes the property off the market. The deposit to pay at this stage could be anything between €3000 to 10% of the purchase price. Normally the agent holds this amount in a client account. Now your lawyer will start a search on the property, which will show if there are any charges against it.
PRIVATE PURCHASE CONTRACT
Within 2-4 weeks a private agreement is signed between the purchaser and the seller and at this stage it is normal to pay 10% directly to the seller. The seller and buyer’s lawyers, together with the agent, should determine all outstanding debts and rates in order to arrange the payment of these according to the agreement. These could be property tax (I.B.I.) community fees, telephone, electricity, water bills, purchasing fees and plus-valia tax.
TITLE DEED
Usually 1-2 months after the reservation agreement, the completion takes place in front of the notary who issues the title deed, or “escritura”. If the purchase is financed with a mortgage the bank representatives are present in order to pay and sign the mortgage. The title deed will then be registered by the lawyer in the corresponding property register. This situation applies to resales.
In the case of a new construction it can take up to 18 months before completion and usually payments are made in stages of 2-4 months.