Legal Assistance:

We can assist you in obtaining an N.I.E. which you will require in order to pay the tax on your property. We can recommend excellent, independent English speaking lawyers.

Prices commissions & Agents:

The first thing that you should understand is that the same property is often offered for sale with more than one Spanish estate agent and quite often offered for sale at differing prices!

The vendor will have an agreement with the estate agent to pay commission upon completion of a sale to a client they have introduced. This is always reflected in the final price negotiated.

Which agency to go with? There is very little point in seeing a different agent every day. You will probably be viewing the same properties over again, and most of the agents you see will not have enough time with you to do their jobs properly, especially in the country areas where the distances between properties is greater. So choose carefully. Too good to be true bargains (used as bait) usually are, and glossy catalogues are expensive to produce and are usually out of date before they get to the printers.

We suggest that before coming over to view properties that you give us as much information as possible regarding your requirements and to make an appointment. Then you can be sure of our best attention.

When you find a property, find a Lawyer.

When you find a property that you would like to purchase, ask the agent if the vendor is likely to accept an offer. Some vendors price to sell, others price a little high and expect to be knocked down, others will wait until the market reaches the value they have set. Let your agent be your guide.
The next thing you do is find a Lawyer (ABOGADO) before you sign anything, if you require any assistance, we can recommend excellent, independent, English speaking lawyers.
A Lawyer will charge you around 1% of your total purchase price. This is great value, as they will look after your financial interests and give you peace of mind, a very valuable commodity when buying a property.
The Spanish legal system and land registration process is different to most other countries and is not to be tackled by the do it yourself type. All your problems can be avoided by using professionals and common sense. Let us guide you in this.

RESERVE:

After having made an offer and it has been accepted, most agents ask you to pay a reserve of 3,000 Euros. This is to take the property off the market and to show the vendors that you are serious buyers. Your agent or your lawyer will do a cntract for this and this will act as part of the 10% deposit. This is refundable if for any reason the paperwork cannot be put in order. The agent should then get copies of the deeds and any paperwork regarding the property to your lawyer.

Conduct a search:

The next step in conjunction with your lawyer is to do a search on the property at the Registro de la Propiedad. For a small fee they will supply a Nota simple for any property. It will give you details of any Mortgages on the property. Sometimes the agent may already have a copy. Buying a property with a mortgage attached is not a problem, as long as you know about it beforehand. Your lawyer will advise you on the cost of continuing with it, paying it off, or re-mortgaging. The Nota Simple will also show if the property is in the name of the person who is selling it.

If there are No Deeds for the Property:

Before doing the 10% deposit contract your lawyer will check that deeds can be obtained when you purchase the property.

Making a Private Contract:

When all parties are in agreement a private contract will be drawn up. You would then normally be expected to pay the rest of the 10% deposit. Your lawyer will pay the 10% to the vendors . This contract is legally binding and your deposit is non-refundable, should the vendors change their mind and not sell you the property then they will have to pay back double. The rights of buyer and seller are protected, this a very fair system. The contract will specify a time limit for completion, normally two or three months and the penalty for not doing so (loss of your deposit). If the paperwork is all in order completion could take place within a couple of weeks.
Normally the property stays on the website until the 10% deposit is paid.

The private contract should also state that:
• The property is sold free of all mortgages, debts and embargo`s.

Note
It is not advisable to make any payment other than the 3,000 Euros reserve to any agent or agency, the balance of the 10% should be paid to your lawyer and the balance of the purchase of the property should be transferred to your Spanish bank account. Only documents and contracts in Spanish are legally binding.
Never sign anything until your lawyer is in agreement with it.

Completing the purchase:

Escritura de Compraventa: This is the final document for the sale and must be signed by the buyer and seller in the presence of a Spanish Notario in order to make it legally binding. The buyer or seller can make a Poder (Power of attorney) allowing another person to sign instead.

The Notario:

The notario is a public official who's job it is to certify that the contract has been signed, and declare money transferred and to advise both parties of their tax liabilities for the purchase. The notario is not responsible for the accuracy of statements in the contract, that is your lawyers job.

Registering the Escritura de Compraventa:
Your lawyer will register this for you and should take approximately two to three months. If not pursue this with your lawyer because until you have the Escritura Publica you do not have full title of your property, so therefore you are not the registered owner.

Taxes and fees:

If you allow an additional 10% of the purchase price it should normally cover everything except the Plus Valia (normally paid by the vendor). Again your lawyer will advise you on the exact amounts. Some of the major charges are listed next.

IBI Taxes:

This is a small local tax and is based on the Catastral Value of your property. Your agent can tell you how much the present owners pay per annum.

N.I.E. Numbers:

You will need an NIE number. A number can easily be obtained from the local police station but can take a few weeks to process so plan ahead.

Banks:

Choose your bank carefully, the running cost vary considerably try to check bank draught charges and bank check charges and will they accept instructions from you by Telex.

Transferring Money:

The cost and time of transferring money varies considerably, so shop around. We can recommend a currency exchange company who will normally give you a better exchange rate than the banks.

Inheritance Tax:

Ask your lawyer how to minimise inheritance tax. Get advice before you decide whose name or names the property is to be registered in, especially if you’re in your golden years.

Common Sense:

As is true anywhere be very careful if you pay any deposits or sign any paperwork without clearing it with your lawyer. It does not matter what a salesman may say. Go away and think about it, if you are still interested talk it through with your lawyer. Always consult your lawyer.

Conclusion:

Buying a property in Spain is an exciting experience, please do not get the impression that you will encounter many problems, in Spain we all enjoy more personal freedom, which is one of the reasons that Spain is such a great place to live. Whilst enjoying that freedom we have to be more responsible for our own decisions. Using your lawyer will protect your interests, making the purchase of your home here a risk and stress free experience.

All of the unfortunate property related stories we have heard could have been avoided if buyer followed the above guidelines.

This is not a D.I.Y guide:

The purpose of this article is to give you some general information, and to point out the areas where mistakes can be made and to encourage you to use professional expertise. Also to reassure you that buying in Spain is enjoyable and stress free.

Thats it:

I hope that you now have a general understanding of what is entailed in buying a property in Spain. If you have that understanding before looking at properties, let your common sense be your guide.

From all at Andalusian homes and land.
We hope you will allow us to find your dream home in Spain and to make house buying here an enjoyable and problem free experience.