|
Buying a Property in Spain |
|
Our
agents in the various areas and towns
will talk you through and take you
through all the necessary steps to
ensure you are purchasing legally, our
agent will introduce you to a Spanish
Solicitor, Gestoria, and recommend a
local Spanish bank if required.
It is
normal in Spain for the estate agent to
do all this work as it is all part of the
service to the client and our agents
DO NOT CHARGE for their assistance,
the agents fees are paid in total by the
vendor of the property
We have listed below for your
information the necessary procedures
involved in the purchase of a property
in Spain, it may seem complicated and
somewhat different to what you would
find in the UK for example, but if you
follow the advise of the Spanish
solicitor (Abogado) you will find that
the system is usually much quicker and
more secure than many other countries.
|
Information:
Apart from the actual
cost of a property, you will need to
allow approximately 10% of the purchase
price to cover the fees and costs of
acquiring a property. This 10% will
cover the solicitor’s fees, translator’s
fees, land registry cost , notary’s
charges, stamp duty and VAT.
PROFESSIONAL ADVICE:
It is important to seek professional
advice, and to employ a solicitor (Abogado).
Most lawyers will tell you in advance
what their fees will be. The standard
lawyer’s fee for purchase of a property
is between 1% and 1.5% of the purchase
price plus VAT, a small price to pay for
peace of mind (using a lawyer in your
home country could double or treble the
bill). The Spanish legal system is very
different from other European countries
and, to avoid misunderstandings,
disappointments and possible fraud, it
is essential to seek professional advice
from the very beginning.
PROCESS
OF BUYING A PROPERTY (THE CONTRACT):
Once you have decided on a property, a
contract will have to be drafted and you
need to make provisions for the deposit.
The standard deposit is 10% of the
purchase price. The deposit is payable
upon signing a Purchase/sale Contract or
an Option Contract (Contrato de
Compraventa o Opción de Compra), which
will include a completion date and
transaction conditions which usually
contains an assurance by the vendors
that the property is sold free of
charges, tenants and mortgages. We
strongly recommend, in order to secure
and guarantee the prospective purchase,
that a solicitor deals with the drafting
of the Option Contract or Purchase/sale
contract.
Once both parties have signed this
contract and the deposit has been paid,
you have secured the property. This is a
binding contract for both sides with
penalties for breaking it or for failing
to honour the terms of the contract.
After you have signed and paid your
initial 10% deposit on the property, it
is imperative to review the important
legal details. Check the receipt for the
paid Rates (Impuestos sobre Bienes
Inmuebles also known as I.B.I.), which
is the annual real estate tax. This
receipt gives the all important “Valor
Catastral” the official assessed value
of the property, on which your property
owners Income Tax will be based. Check
with the Town Hall that the I.B.I.
receipts have been paid up to date. Any
outstanding amount should be requested
from the vendor.
Do not buy a Spanish property until you
have obtained a current extract of the
title from the Land Registry (Nota
Simple)
continued
|
|
