How to Buy a Property in Spain
The majority of property purchasers in Spain do so through a Real Estate Agent. A buyer ought to be extremely cautious when appointing one, regardless of whether they have a large or small portfolio of properties.
At 4everSpain try to make the buying process as simple and painless as possible. We are here to assist you in your purchase by sourcing suitable properties and introducing you to reputable legal and financial advisers.
Before you start looking for a property in Spain, you should carefully decide on the area you will want or need, location should be the essential factor in your decision. Points you need to consider will depend on your personal requirements and you should consult with us and we will will guide and assist you in making your choice.
Reserving your property, prior to signing the contract you will need to enlist the services of a lawyer. We recommend that you use a English speaking Spanish lawyer, one who is familiar with the local regulations. Naturally they are more familiar with the process of property purchase in Spain and will be able to guide you through the legalities involved in your purchase with minimum expense and complications.
Once both parties have agreed to the main points, a reservation contract will be drawn up and signed. It is common practise to pay the reservation fee to either your legal representative, the developer or 4everspain in order to ensure that the vendors are assured of your genuine intention to buy. The reservation fee withdraws the property from the market and guarantees a fixed price.
The Purchase Contract – will need to be signed by both parties in the time agreed scale at the reservation contract.
A portion of the purchase price will need to be paid to the vendor at the time of signing the puchase contract, your lawyer will look after all these matters in your own names and first stage payments will vary from 10% for a resale to approximately 40-50% for a new property.
This is normally a non refundable deposit. In accordance with Spanish law, it is common practice for the contracts to be in Spanish, nevertheless your lawyer will be able to obtain a translation and will not ask you to sign any documents without having understood them beforehand.
In Spain a sale is formally completed when the public title deeds (escritura) are signed before a public notary, the final payment made, and possession given to the buyer.
It is standard practice to expect to pay charges and fees of approximately 10% of the cost of purchase. This includes 8% IVA (VAT), 1% Legal Fees, other costs will be stamp duty at 0.55%, Land Registry Fees and Notary Charges. The payment of these fees and charges will be organised by your lawyer.