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Simple Guide to Buying in Spain
First, you find the property you want! This has got to be the most important of all of the steps!
Next, you pay a deposit on the property, a mutually agreed sum of money between buyer and seller (or agent working on behalf of seller). The normal accepted amount is 3.000€.
At the paying of this money, a contract will be signed, which determines the conditions of the purchase (price, property details etc). Buyers normally complete this form using their passport as identification. This contract also acts as a receipt for the 3,000€.
The next step is to agree a date when the name change will take place. This can be done with as little as three days to prepare the relevant legal papers. The most important factors in setting the date are normally
- 1.Availability of the buyers – the buyers must be in Spain on the day, or have a valid Power of Attorney in place.
- 2.Availability of the sellers – the sellers must be in Spain on the day, or have a valid Power of Attorney in place.
- 3.Availablity of the funds – the money needs to be in Spain, of course! Without funds, the house can’t change hands! Money transfers must be arranged so that the money is in Spain, free to be used on the day.
- 4.Mortgage Conditions – if you are applying for a mortgage, is there enough time to sort out all the paperwork and get organised with the bank?
Once a deposit has been paid, if you have not already appointed a Lawyer/Fiscal Representative to work for you, you should now make this a priority. Don’t even think about buying a property without getting legal advice! This is a foreign country with it’s own ways of working and you should always get expert advice to help you through the system.
So, you now have until the agreed date to get all your papers in order. This will include an NIE number, a special tax code in Spain which allows you to register the property in your name and pay the relevant taxes. You’re Fiscal Representative/Lawyer will advise you on how to obtain this number.
Your Fiscal Representative will also breakdown the costs involved in purchase, those within the purchase price and all expenses on top. This will then let you know how much money you need to have here in Spain.
A good Fiscal Representative will run property ownership checks, land reports and advise you of the outcomes (Nota Simple). They will verify any debts which exist on your desired property and ensure that a seller brings all debts up to date prior to you purchasing the property. They will also ensure that a Habitation Certificate has been issued on the property, meaning that the Town Hall gave the property the all-clear after it was purchased. These are all integral parts of the purchase act and need to be handled by a competent Lawyer/Fiscal Representative. We do not recommend that you try to navigate this process on your own.
Once all papers have been verified and okayed, they are submitted to the Notary Office, for the change of ownership. Payment is taken to the Notary office and the exchange of title deeds and payment takes place there. Then the new owners details are recorded in the Land Registry (again, by your Lawyer/Fiscal Representative or by your lending bank in the case of a mortgage) and you are now the owner of your new home.
The last, but by no means least, task that must be undertaken is that of changing the name on the electricity, water and local rates bills. Your Lawyer should arrange for all of this, leaving you free to stretch out in the sunshine and full enjoy your new home.
Congratulations!
