Once you have agreed the sale with the vendor the first thing that needs to be done is a sales contract, this is a private contract between you and the vendor to ensure that they don´t go off and sell it to another party, normally at this point you will have to pay a deposit of 10% of the agreed sale price and this is a non-returnable deposit if you pull out of the sale, vice versa, if the vendor pulls out they have to give you back twice the deposit paid. Points which need to be negotiated at this stage include the terms and conditions of the purchase such as sale subject to mortgage, payment terms and exchange dates.
Buying in Spain
Buying a property
Buying a property is a big step to take in life wherever you buy. Buying a property abroad is an even bigger step to take and more so if you are unaware of the requirements to do so.
With Expat Solutions, we will help you reduce your worries and get all the paperwork in order so that you can enjoy your life in Spain as soon as possible.
You've found the house of your dreams...
What next?
If you need a little more time to finalise your finances (obtain a mortgage etc) a holding deposit is normally paid in order to take the property off the market for an agreed amount of time. This is usually between 1,000€ to 3,000€ and this reserves the property for a period of 2-4 weeks. All deposits are paid in cash so you need to make sure before you start viewing that you have access to funds.
What makes us different
1
Preparing for the sale
As the buyer of the property it is your representative’s responsibility to prepare all the paperwork for the sale and to present it to the notary.
Once the private contract has been signed it is necessary to conduct a full background check to ensure that the property is free from debts which is one of the most important tasks performed. In Spain the debt is carried by the property, not the owner, so you will be liable to pay for any encumbrances discovered at the point of sale, and thereafter. It is always best to make sure the utilities and any community fees have all been paid up to date as any missing back payments will also become your responsibility.
2
Paying for your property
Before the notary date you will need to ensure that you have sufficient funds in your Spanish bank account, it is standard on the morning of the sale to go to the bank and collect the banker’s draft (ordered a few days before) and cash to cover purchase costs as previously agreed. Please note – Spanish banking is not free and you will be charged for raising the banker’s draft. Before you transfer money to Spain think about using a currency broker to save you paying a fortune in commission or losing out on exchange rates.
3
At the notary
When both parties are ready to complete the sale, they (and their representatives) attend the Notary’s office to sign the escritura de compra venta (title deed of conveyance). If you’re trying to go it alone and don’t speak Spanish you have to take a translator, they will translate the deeds for you and sign that they have done so.
Unlike in the UK, it is not unusual for the same person to represent both the seller and the vendor and in fact this actually makes the sale go more smoothly as there are fewer parties to co-ordinate.
Buyers Financial Responsabilities
On the top of the agreed sale price, the buyer has extra financial costs which cover the following:
Purchase Tax
Fiscal Representation
Notary Fees
Land Registry Fees
Mortgage Fees (if applicable)
What happens after the sale?
What next?
At the point of sale a fiscal representative will be appointed to you (normally your representative) and it is their responsibility to ensure that all taxes on behalf of both the seller and buyer are paid within 30 days from the date of signing the deeds. Once all the taxes are paid the new deeds are presented to the Land Registry and the ownership of the property is transferred into your name (this can take between 2-3 months).
All the utilities also need to be changed over into your name and direct debits set up from your nominated bank account.
F.A.Q.s
What if you don't have an NIE number?
Recent Spanish legislation makes it compulsory for anyone buying and selling property in Spain to have an NIE Number – Numero de Identidad de Extranjeros which, translated, means “Identity Number for Foreigners“.
What if one of my party is unable to come to Spain to sign before the notary?
A power of attorney can be done in the UK, valid for a house purchase in Spain. You need to speak with a notary close to where you live to discuss this, it helps if the power of attorney is written in both Spanish and English as this will save having to get it translated, your representative will be able to help with this if needed.
What insurances do I need?
Fire and death insurance is compulsory by law when taking out a mortgage. As in the UK there are a variety of insurances available covering home and contents, vehicle, life, travel and anything else you might need.
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