Legal Information ...
› BUYING A PROPERTY
Most people who come with us to Spain are not first-time buyers, and many have bought and sold many homes in their country of origin however, buying a property in Spain is different.
The legal procedures are not the same. All ownership of land and property has to be registered and both buyer and seller must sign the purchase deed, the Escritura de Compraventa before an official called a Notario who has no exact counterpart in the UK.
› The Private Contract
When you have found the property of your choice and agreed the terms of purchase and most importantly, you are sure the terms of payment are within your means, it is then the time to enter into a private contract with the seller.
› Deposit
At this point you pay a deposit to secure the property. Remember: There is no such thing as a property being ‘under offer’ in Spain. If you agree a purchase, you are expected to be in a position to complete the contract.
› The Title Deed
When the last payment as per the contract is due the seller will prepare the deeds at the Notary’s office. After the last payment has been made the buyer and the seller in front of the Notary, who will certify the validity of the transaction will sign the deeds.
At this point you will pay the Notary’s fees and transfer taxes. The deeds will then be registered. It may be a few months until you receive the registered deeds but in the meantime you will have the Copia Simple (Simple copy of the deeds) as proof of purchase.
› Legal Advice
You should use a lawyer and it should be a Spanish one as laws in Spain are different to those in other countries. They will check the title deeds, and even assist or represent you at the signing of the deeds. If you cannot be at the signing of the deeds, your Lawyer, or Abogado as he is known, can do this for you as long as power of attorney has been previously arranged. This is best done whilst in Spain as it is often quicker and cheaper to do so.
› Fees and taxes
The sale and purchase of property involves payment of certain fees and taxes. The Notary charges a fee for preparing the Escritura and attending to completion, and there is a fee for title registration (please note: Notary fees can vary and will be higher when a mortgage is registered to the title deeds). Transfer tax is calculated at the value of the property as registered on the Escritura. New property attracts VAT (IVA in Spain).
› Making a will
Once you have purchased a property it is sensible practice to make Spanish Will. This measure should be taken to ensure your Spanish estate is dealt with according to your wishes. Your Abogado can advise, but the will is drawn up at the Notary, and is a relatively inexpensive process.
