Buyers guide to Spain - A step-by-step guide to purchasing property in Spain
Buyers guide to Spain
Prior to Viewing
Before making the journey to Spain, it advisable to ensure that sufficient funds are available to cover the reservation sum or deposit.
Normally this is 10% of the purchase price. A cheque from a foreign bank account can take up to 10 days to cash so it is advisable to make a credit card available so as not to risk losing a preferred property.
Choosing a Lawyer
Always use an independent lawyer who can provide documentation in a language convenient to the purchaser. Jackson-Stops & Staff can provide you with a list of lawyers that they have successfully dealt with in the past. All this information is available in our Buyers Guide to Spain which is available upon request. Using a lawyer in the UK will often substantially increase your legal costs and most certainly delay the sales process.It is worth remembering that prior to any contract being signed, the following legal procedures must have been completed.
- A lawyer must be appointed to conduct a report on the entire property. The report must include details of land classifications and any future municipal development plans.
- A lawyer will need to inform the Land Registry that the property is in the ownership of the new owner and is free of charges and embargoes and is up to date with payments of local contributions and community charges etc.
Formalising the Offer
Once there is a verbal accord between parties, terms will be drawn up in writing. It is standard practice in Spain to include with the written offer, a reservation deposit which will be held in escrow until the exchange of private contracts.
Exchange of Private Contracts
Upon acceptance of the offer by the owner, the next step in the sales process is to exchange private contracts of sale or to sign an option to purchase. This normally takes place within two weeks following formal acceptance of the offer. The appointed lawyer will have completed his searches and investigations of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts. The private contract of sale (or option to purchase) will reflect all the agreed terms of the offer and impending sale and set out the date for final completion at the Notary. It is customary practice at this stage to pay 10% of the purchase price.
Final Completion at the Notary
A sale is formally completed in Spain when the public title deeds of purchase are signed before a Notary, the final payment made and possession given to the buyer.
Registration
Once signed, the Notary will fax a copy of the Title Deeds to the local Land Registry. Your lawyer will also pay on the purchasers behalf, all the relevant transfer taxes associated with the purchase and will handle the formalities of the registration of theTitle Deeds. Final registration of the deed may take up to two months. Similarly, your lawyer will arrange for the transfer of accounts with the local suppliers of utility services such as water and electricity and organise their payment through a local bank.
Our International division will be able to answer any of your questions regarding the practicalities of living in Southern Spain as a holiday destination, or when considering the area as a viable base for business, retirement or any other type of full time relocation.