It is important to recognise that the property buying procedure here in Spain is a relatively simple one and can usually be completed within a matter of weeks. However, it is essential to engage the services of a reputable Real Estate Agent and Lawyer, who will have the necessary expertise to represent and protect your interests from start to finish.
Once we have helped you to find your perfect property and you have reached the important decision to proceed with the purchase, we will help you to negotiate the right price with the vendors.
You will then need to protect the price you have agreed by paying a Reservation Deposit, which will also enable the vendor to remove the property from the market with any other agents. The amount of the Reservation Deposit required depends entirely upon the value of the property, but will always be a minimum of 3.000 euros.
If you are considering a new build project, there will be an initial Reservation Deposit required, normally a minimum of 5.000 euros, followed by regular stage payments.
Once the Reservation Deposit has been paid, you will instruct a lawyer to represent and support you throughout the process. Your lawyer will conduct all of the searches on the property, to ensure that everything is legally registered and that there are no outstanding debts. We have worked with several lawyers in the area and will be happy to recommend one that is suitable for you.
Your buying costs will normally be around 12.5%, so please remember to consider this fact when searching for your property. These costs will cover the following:
• 10% Spanish Taxes
• 2.5% for Legal Fees, Land Registry and the Notary
As soon as the Reservation Deposit has been paid, you will need to apply for a tax identification number, known as an “NIE number”. This number is required in Spain for many things, to buy a property, a car, be employed, etc. and will stay with you for life! Inspire Real Estate or your lawyer will arrange this with you.
Once all the property searches have been completed to the satisfaction of your lawyer, the Private Purchase Contract will be prepared and both buyer and vendor will be asked to approve this and sign on each page. It is at this stage that the initial Reservation Deposit will be made up to 10% of the agreed purchase price. This amount will then be transferred to the bank account of the vendor and a date for completion at Notary will be agreed by both parties.
It is very important to remember that, once the Private Purchase Contract has been signed, if you should decide to pull out of the purchase, without valid reason, you would lose the 10%. If the vendor pulled out of the sale at this stage, again without valid reason, then they would have to pay back the 10% plus a further 10%.
If you require a Mortgage to finance the purchase of your property, we will help and support you through the application process. We work along-side a well-known and highly respected Mortgage Broker here, Mortgage Direct and will be happy to introduce you to them. They have important, established relationships with all of the major banks in the area and their support and advice will quickly put your mind at ease. You will also see a link below so that you can easily contact Mortgage Direct when you are ready, without any obligation. If your purchase is “subject to you being granted a mortgage”, it is very important that you make us and your lawyer aware of this when paying the initial Reservation Deposit.
For currency exchange we work with the most respected and competitive companies, so will be happy to introduce you to them.
Completion: Inspire Real Estate and your lawyer will accompany you to the Notary, together with a representative from the bank if you have agreed a mortgage. You will need to take your passport with you and your lawyer will bring all of the other paperwork. As soon as the Notary has read through the property deeds (Escritura) and confirmed everything to be in order, you will all sign and the property keys will be handed to you, as the new owner!
If you are unable to be in attendance on the day of completion, you can grant Power of Attorney to your lawyer and they will represent you and sign on your behalf.
When you are ready, we hope you will allow us to accompany you on your exciting journey!