You've found the Property……..what happens now?....and what's all the jargon?Having chosen your property and agreed the price and general terms and conditions of purchase it is customary in Spain to place a deposit to secure the property. This acts as your official confirmation that you wish to proceed with the purchase and also prevents the seller from taking other offers. The deposit is usually 10% in the case of a resale and 3,000 euros in the case of a new build.
In the case of a resale property or a plot of land the following applies:-
When purchasing a new property such as a villa in the country or an apartment on the coast the payments are usually broken down into stage payments at different levels of the build. A typical example is as follows but can vary from builder to builder:-
These payments can sometimes be negotiated to suit individual purchasers needs, subject to the builder’s approval. Please note there is a trend in the newer holiday apartment developments to only have an initial stage payment and then the balance on completion - this initial payment can vary from 10-30% - this is obviously Good News as it allows you to hold on to your money for a lot longer! IN ALL CASES THE INITIAL DEPOSIT IS FULLY REFUNDABLE IF YOUR SOLICITOR'S SEARCHES PROVE UNSATISFACTORY.
Considerations when buying an old Cortijo
SolicitorsUnlike the UK where home buyers always instruct a solicitor when purchasing a property, not everyone in Spain does and it is perfectly legal to purchase a property in Spain without instructing a solicitor. Everyone has heard the horror stories. ALL these problems could have been avoided by instructing a solicitor. There is no substitute - use a qualifed independent abogado (Spanish solicitor). The cost of this varies but is usually around 1000 euros. Most work on a fixed charge and are able to give you a complete breakdown of their costs and charges before you instruct them. We have our own English speaking abogado who can act totally on your behalf. Click here to see details then close the window to return here. NotariesNot to be confused with Abogados (Solicitors). The Notary function is to witness the signing of all public documents, in this case your Title deeds or Escritura before their inscription in the land registry. It is the responsibility of the Notary to verify title to the property. Notaries will also witness the signing of Powers of Attorney and Spanish Wills. EscrituraThis is your title deed and will be signed in front of the Notary on completion of final payment. Once signed this document is sent to the land registry where it is registered in your name "Free of all charges and encumbrances" and a first legalised copy is given to you (Copia Simple). Your solicitor (usually about one month later) obtains the original and sends it on to you once it comes back from the Land Registry. Registro de la Propiedad (Land Registry)Not only is this where your Title will be lodged, it is also where your solicitor will carry out all the original searches concerning your property as all debts on a property to be a "Valid debts" must be lodged here. N.I.E.The NIE is an identification number that everyone has and is on all legal documents in Spain - your Abogado can assist you in obtaining this. There are no restrictions on obtaining one it is purely a matter of filling in the appropiate forms when you are instructing your solicitor. Recent changes to the law may mean you will have to now apply in person. This is best done in Spain but can be done in the UK by visiting one of the Spanish Consulates if necessary.
All in all buying a home in Spain can and should be a very simple matter. We certainly try and make it so and we hope that this web site with it's buying guide will be of assistance. It is however only intended as a guide and should not be used in place of professional legal advice. |
Buying
an old property cannot be taken too lightly as there can be issues associated with
ownership and debts. If the property has been handed down from generation to
generation of Spanish family then there is a strong possibility it does not even have a
current Escritura (Title Deed) proving ownership or any documentation stating where the
boundaries of the land are. However these problems can be simply overcome as long as
you use a local Spanish Solicitor from step one. They will ensure that all necessary
checks and supporting documentation are in place before you commit any major sums of
money. In fact our solicitor will usually carry out initial checks prior to even
putting the properties on the market - if there are any major problems....she leaves well
alone and we look for alternative properties!