PURCHASE PROCEDURE

Below are the simple steps towards buying a resale property in Spain, which are slightly different to buying on a new development (off plan).

RESERVATION DEPOSIT

Once you have found your ideal property, to reserve the property, you will need to pay a reservation deposit. This is usually between 3000 - 6000 €. The best options for payment are by international bank transfer, bank transfer (for those clients with a Spanish bank account)  and credit card.

Once you have paid the reservation deposit , the property that you have chosen is taken off the market and is reserved for you at the agreed fixed price.

At this stage you need to appoint a lawyer who is fluent in spanish, who can also speak your native language. If you do not already have a Spanish lawyer we can recommend one for you. Your lawyer will explain the procedures involved with purchasing a property in Spain, as well as negotiating purchase terms with the vendor's lawyer.

It is normal at this stage to give power of attorney to your appointed lawyer to act on your behalf. This will involve a visit to a public notary to sign over consent. At no time should power of attorney be given to the other party.

EXCHANGE OF THE PRIVATE PURCHASE CONTRACT

After the initial reservation deposit has been paid, you have up to thirty days to exchange private purchase contract. This basically means that you will pay the remainder of the deposit required. This can be undertaken by your lawyer, who can exchange contracts on your behalf, if you are unable to attend.

COMPLETION

On the assigned day of completion, the buyer and vendor (or their authorised representatives) will be present at the office of the notary to sign the Escritura de Compraventa (the title deed). The notary does not check any terms, but certifies that both parties have agreed to the terms stated (the notary is in place to only witness both parties' signatures). At this stage the property becomes your possession, your lawyer is now required to fax details of the title deed to the local land registry confirming you as the new owner. Your lawyer will also arrange payment of taxes and fees.

It is advisable to make sure your property and contents are fully insured at this stage. Your lawyer or agent can undertake this for you.

COSTS INCURRED

There are three fees that are required to be paid: - the lawyer's fee, the notary fee and the property registry fees, plus taxes (transfer tax - ITP, and "Plus Valia"). You will always have to calculate approximately 10% of the property sale price to cover all your costs.

The above is a brief guide on the steps taken when buying a property in Spain - please do not hesitate to contact us for further advice.