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Our Guide to
Buying Property in Spain
Angel Property will help to make your purchase as easy and straight forward as possible.
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VIEWING PROPERTIES
We will discuss with you the properties that may interest you and draw up a list of viewings. We would recommend that you view a few properties a day so as to avoid "overload". If possible take a video camera, or camera and pen and paper with you to record the property and your thoughts. Please be honest with us. Tell us if the properties we show you are not to your liking so that we can understand your requirements.
If you find a property you are interested in, we will arrange a further viewing. It is not normal practice in Spain to have a structural survey as you would in the UK so having a good look at the property is very important. If you have any questions about the property please ask. If we don't know the answers, we will say so and make enquiries on your behalf.
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MAKING AN OFFER
If you decide on a property, you should make a verbal offer through us. This may be below the asking price and some negotiation may take place until an agreement is reached.
SOLICITOR
The system of property sale/purchase in Spain is such that many Spanish speakers do not use a solicitor. However, we would advise that you instruct a solicitor who speaks your language and can explain the legal issues to you. We can put you in contact with a reliable and independent local solicitor.
Your solicitor will make all the necessary checks to ensure that the property in which you are interested can be legally sold and is free of charges.
HOLDING DEPOSIT
A refundable deposit of 3.000 euros may be needed before these checks are completed and a reservation contract signed. This contract will state that if your solicitor does not find that the checks are clear, the deposit will be returned and the contract cancelled. This will ensure that the property is taken off the market.
PRIVATE CONTRACT
Once your solicitor has completed all checks, a contract for the option to buy would be signed. This would normally take place within 2 weeks of the acceptance of the offer.
This contract would set out all the agreed terms and conditions of the purchase and state a date for completion. At this stage you will need to pay a deposit of between 10 & 15 % that is NON-REFUNDABLE if you do not complete the purchase for any reason. Similarly if the seller does not complete the sale then by law he must refund your deposit plus a further equal amount.
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COMPLETION
On the agreed date, the purchaser and the seller (or their agents) will sign the "Escritura de Compra Venta" (title deed) in front of a "notary public". The Escritura will state that the property is sold free of debt and with vacant possession. We, and your solicitor, will be present to explain the procedure to you and arrange translation of the necessary documents.
Payment is made in full at this time and you become the legal owner of the property. This fact is immediately lodged with the "Registro" (registry office). One week later the esritura will be collected, at which point the Notary fees will be paid. The escritura is then lodged with the Registry office when the relevant taxes will be paid. You will not receive a copy of the Escritura for approx. 2 months when all the paperwork process is complete.
BUYING WHILST NOT IN SPAIN
It is possible to complete your purchase whilst remaining at home. Your solicitor can arrange for you to sign a power of attorney ( poder ) whilst you are in Spain choosing your property. Alternatively this can be arranged from the UK.
This will enable them to act for you and to complete your purchase over the following months.
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THE COSTS
There are 3 fees payable: Solicitors fees, Notaries fees, and Property Registration fees.
There are 2 taxes to pay: Transfer tax (ITP) and "Plus Valia"( a small localised tax based on the increased value of the land).
Solicitor fees. Normally about 1% of the purchase price plus IVA (VAT)
Notary fees. Fixed by law and dependent on the declared property price (normally 300 to 1000 euros).
Registry fees. A price similar to the notary fee based on the declared value taking into account the m2 of the property
Transfer tax ( ITP) 7% of the declared price on a resale property or 7% IVA on a new build property and 1% registry fee.
WHO PAYS?
The purchaser normally pays all of the above taxes and costs, although in most cases the seller will pay "Plus Valia". The Private Contract will state who will pay what. We advise that you should allow 10% of the purchase price for fees and taxes.
NEW BUILD PROPERTIES
For properties bought whilst in construction or off plan the purchase procedure may differ slightly. The constructor may have a contract already prepared but you should not sign this until your solicitor has checked it. You should then expect to pay a deposit of 10 - 40 %. In some cases the constructor will require no further payments until completion, others will require further payments when agreed stages of the building are complete, normally up to a maximum of a total of 70 - 80 %. The final 20 - 30 % is paid at the signing of the " Escitura de Compra Venta". The majority of constructors are not bonded as would be normal in the UK however it is possible to purchase a bond for a small fee. Your solicitor can advise you on the best course of action.
FINALLY
Buying property in Spain is a simple process when using knowledgeable professionals. Our aim is to provide such a service together with comprehensive after sales care to make your Spanish purchase as stress free as possible.
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