Buying Property in Spain - Guide to purchasing Spanish Property

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Guide to Buying Property in Spain

Property Spain – Buying Guide

In order to protect your interests and be sure that all Spanish legal requirements are met, you are well advised to use the services of an independent Spanish lawyer (abogado). Spanish property purchase takes place in three easy steps; reservation, Private Contract, and completion:

1.  Reservation of your Spanish Property

Having found your ideal Spanish property, the agent will need to take it off the market to allow you the option to purchase it.  You’ll need pay a holding deposit to the current owner, who has to sign a document giving you the option to buy the property.

After this first step has been taken care of, your lawyer will carry out all the necessary property searches and investigations with the relevant authorities in order to ensure the property you are purchasing is in a perfect legal condition and free from any charges, debts or encumbrances.

In the case of a new property, your lawyer will ensure that the constructors are reputable and solvent and will obtain guarantees that the property will be constructed and delivered according to the agreed terms and conditions.  In the event that the lawyer finds any abnormalities with the property, your reservation deposit will be fully refunded before signing the Private Contract.

At this stage, you should also arrange for your lawyer to obtain your N.I.E., a personal identification number which is required for the purchase of property or any other high value items.

2.  Private Contract

Once the searches are complete, and your lawyer is absolutely certain the property is legally declared to be in a good condition to purchase, a Private Contract is drafted and signed by both parties.

This private contract sets out all the details of the agreement, payment terms and completion date.

During this stage the buyer puts down a non-refundable deposit less the holding deposit already paid at the reservation stage.

3.  Completion

Completion on the purchase of the property takes place in the presence of a Spanish Notary, when the buyer and the seller sign the Title Deeds (Escritura de Compraventa).

The Notary is an official of the State with the duty of certifying that the contract has been signed, and the purchaser and seller have been advised of their tax obligations.  The Notary ensures all the legal requirements are in place and that the completion monies are paid.

If you are not able to be in Spain for completion, your lawyer can make arrangements to sign the Title Deeds on your behalf. This procedure involves processing a Power of Attorney document which can be done during your next visit to Spain, or alternatively through your own solicitor.

Title deeds and registration of your Spanish property

Once the completion process has been finalised and you have become the proud owner of the property, your lawyer will then proceed to register the property at the Land Registry office, registering you as the new legal owner.

The Land Registry will notify your lawyer as soon as the Deeds are available for collection, which normally takes place between two and three months after the signing of the Deeds.

Utilities
Additionally, your lawyer should arrange for the utilities of the property (electricity, water, etc.) to be registered in your name and for the bills to be debited to your Spanish bank account if you so wish.

See also: Property Investment in Spain & Mortgages in Spain