We continuously update our guide about "legal" matters when buying a property because we always ensure that we are kept up to date with all the new laws and taxes applicable to the Property Industry. In fact, the IMM Group has lawyers in-house who are ready to help you throughout your purchasing process.
We advise, however, that you seek independent legal advice when buying property as this ensures that all your property needs are met. We also have a list of reputable lawyers that will speak your language. Contact us and we will put you in contact with lawyers that will help you throughout your buying process.
As Spanish Properties are still one of the most sought after, below are the simple steps towards buying Spanish resale property in Spain, which are slightly different than when buying a new development. Remember that you can always contact us if you have any legal questions about properties in Spain.
- RESERVATION DEPOSIT
Once you have found your ideal property, you reserve the property with a reservation deposit. This is usually between 3000 - 6000 €. You can either pay this by credit card, bank transfer, internet transfer or cash.
Once you have paid the reservation deposit this guarantees that 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 will 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 authorized 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, and 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 approx. 10% on the top of the sales price to cover all your costs.
Please note that this is only brief guide on the steps taking when buying a Property in Spain. Of course, we understand you might have many more questions, so please do not hesitate to contact us for legal advice and our legal department will be ready to give you any kind of advice you may require.