Step-by-Step Support for Property Buyers in Spain
Buying a property in Spain could be a daunting processand many questions may arise, "Is the seller the realowner? Is the property free of charges or encumbrances?What is the property legal status? What taxes am I liablefor? Has the developer complied with all legalrequirements for construction and sales? Whatever the property you’re buying – off-plan, new builtor a resale – PRIME LEGAL gives you the advice you needto buy with complete peace of mind. We have design a basic guide to provide you with anoverview of the main steps of the process.
Expert guidance and qualified help
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DO YOUR RESEARCH & USE A REAL ESTATE AGENT
Once you’ve decided you want to buy a property in Spain, we recommend you research the area carefully and contact a reliable real estate agent.
Have a think what is the purpose of your investment, this is, if it will be for personal use or to let, if it will be for holidays or for permanent use. It will help you to contact a reliable real estate agent in the area that can inform you the best options for your
needs.
DEPOSIT & RESERVATION CONTRACT
Once you have chosen the property you wish to buy the first step is to secure the property and price by taking it off the market for a period of time. To do this, you will be asked to pay a reservation deposit, this is an amount that can vary depending on the property price and at the same time, you’ll be asked to sign a reservation contract between you and the vendor. This contract should include certain information and the basic terms of the agreement, i.e. property description, price, payment terms and completion date. Since the reservation deposit is usually non refundable, it is important to appoint a legal representative and get proper legal advice before signing or paying any deposit. Please, keep in mind the process might be slightly different in case you buy an off-plan property and a background check of the developer is needed. You shouldn’t sign any contract without being certain there is a building licence!
APPOINT LEGAL REPRESENTATION
To prevent something going wrong it is highly
recommended to appoint a legal representative as soon as possible in the process. By instructing PRIME LEGAL you will have a quality Spanish conveyancing service and will get peace of mind being sure that your interests will be protected. As your representatives, we will take care of protecting your rights before signing any document, prepare a due diligence on the property by checking not only the legal status from the local planning point of view but also that it is free of charges, debts and encumbrances and any other circumstances that may affect the property.
SEARCHES & PRIVATE PURCHASE CONTRACT
After signing the reservation contract and before the Private Purchase Contract there will be a period of time during which as your appointed Spanish lawyers we will carry out the Searches ensuring the vendor’s right to sell, the property’s legal status and others such as if it is free of any charges or debts as well as free of tenants and occupants, to mention just some of the necessary checks. Also, this is the moment to negotiate the terms and conditions to be incorporated to the private purchase contract. On exchange of contracts you should pay part of the purchase price which can vary depending on the type of property, normally it will be around the 10% of the purchase price. It is of great importance to ensure that all verbal agreements are written down, e.g. property furnished. Note that you can only rely upon information given in writing. Purchasers of property in Spain are required to have a Spanish NIE (Identification Number for Foreigners) in order to register the title deeds and pay the purchase taxes, and as well to open a Spanish bank account and to set up utilities. To apply for your NIE as well as to act on your behalf in the purchase before the notary in case you can not attend personally you will need to grant a formal Power of Attorney (POA) in our favour. The easiest and cheaper way to grant power of attorney is to sign one before a notary in Spain. It can also be arranged through the Spanish consulates or a notary public with La Hague Apostille. This is a good moment to contact a currency exchange company for the transfer of funds in case your currency is not the Euro.
COMPLETION
Formal completion takes place when the parties sign the title deeds before a public notary and the balance of the purchase price is paid over.
At this stage PRIME LEGAL will take care of preparing all documents needed to complete, e.g. proof of previous payments, First Occupation Licence, Energy Performance Certificate. As mentioned, in Spain completion takes place before a public notary who will witness the signing of the deeds and will ensure that both parties understand the terms and that those terms complied with the legal requirements. This appointment must be attended personally unless you granted a power of attorney to PRIME LEGAL to complete on your behalf.
AFTERSALES
This is the last stage. PRIME LEGAL looks after absolutely everything! We will go through the hassle! We will take care of collecting the deeds, paying the taxes and register the property on your behalf in the Land Registry. We will set up the utility services such us water and electricity, and as well we will register you with the Town
Hall regarding to the local taxes. All you need to do is just enjoy your new home in Spain!
