Buying Property in Spain

Advice on "How to Buy a property in Spain" 

When purchasing Spanish property, it should not be assumed that the procedure is the same as in your home country. There are a number of pitfalls to be avoided and matters to be dealt with.

It is therefore essential to take proper advice from a firm of lawyers versed in the steps to be followed. Such a firm can try to protect your interests and ensure that the procedure goes as smoothly as possible.

You are advised to find a reputable law firm, which will be able to deal with the steps involved in the purchase. Also, it is important to contact an specialised estate agent with time enough to show you around the area, giving you an idea of both advantages and disadvantages of each place and explaining the particular details of the purchase operation.

A good estate agent should always try to asses you, helping you to take the right decision, rather than pressing you to buy whatever is more convenient for him or her.

Please bear in mind that the following is only intended to give you a very general idea of what is involved, and that each transaction is different and raises its own issues. We hope, however, that you will find the following to be useful.

THE PURCHASE CONTRACT.

Once you have found a property you wish to buy, to secure this, freeze its price during the whole transaction and take it off the market, you may well have placed a small reservation deposit with an Estate Agency in the area. This reservation could vary depending on the vendor, but a minimum sum of ? 3,000 is normally considered. Shortly thereafter you will probably be asked to sign a purchase contract. it is essentail you ensure that the terms of this contract are correct.

However, it is always recommend that, before signing the contract, it is important that that your lawyer checks the proposed contract and gives you an idea of its contents. The lawyer may well suggest that certain terms of the contract be amended and will try to negotiate these changes with the vendor.

LAND REGISTRY AND BUILDING LICENCE.

Before paying a substantial sum to the vendor ? for example when the purchase contract is signed ? it is advisable that a search is made at the Spanish Land Registry to try to ensure not only that the seller has title to the property, but also that the property you wish to buy is free of registered charges and encumbrances (mortgages, etc.).

Apart from this, in the case of properties to be built, it is also important to ascertain that the builder has a building licence for the property. This will usually require a visit to the local Town Hall to make verbal enquiries, given that there is often insufficient time for a copy of the building licence to be obtained. Often the planning permission will not be totally in order, given the time the planning process takes and the speed with which development and building occurs in this area.

COMPLETION.

Completion of the transaction in Spain takes place before a Notary Public. It is at this time that you will be asked to pay the last part of the purchase price. The Notary will check the identity of the parties and the registration of the property at the land registry. The deed of sale and purchase, known as the ?escritura?, will be signed before him, and he will issue a true copy of the deed to the purchaser. It is important that you try to attend personally at the Notary?s, but if this is impossible, or inconvenient, your law firm can assist you with the drafting and execution of a power of attorney so that they can sign the ?escritura? on your behalf. It is also advisable that you visit the property you are buying just prior to the execution of the ?escritura? to ensure that the property is ready and is to your satisfaction. Upon the signature of the ?escritura? you should request and be given the keys to the property.

THE REGISTRATION PROCESS.

After the execution of the ?escritura?, the fees and taxes due on this should be paid and the deed presented for registration at the Land Registry in Spain. Your law firm can deal with this on your behalf. You should bear in mind that, depending, for example, on the workload of the Land Registry, it can take a number of weeks for the registration process to be complete.