Reservation Deposit
You will be asked to place
a small reservation fee with the vendor's lawyer to secure
the
property you
wish
to purchase. This deposit fixes the sale price and
removes the property from the market. This is normally
non -
refundable unless there is a problem with the paperwork
of the property.
Lawyer
You
will be required to appoint a lawyer or "abogado" to
handle the purchase of the property on your behalf. All
lawyers in Spain are members of the “Colegio de
Abogados”, which is similar to the Law Society
in the UK and they are therefore fully regulated by the
law in Spain. It is important to find a lawyer who is
fully conversant with property conveyancing in the area
in which you are purchasing the property and also speaks
English. If you are unable to attend the final signing
of your purchase here in Spain you can give the lawyer
Power of Attorney to purchase the property on your behalf.
Here we can assist you in appointing a lawyer if required.
Searches
On
payment of the reservation deposit your lawyer will perform
a search at the land registry to confirm the status of
the property and if there are any outstanding charges
or encumberances on the property. Your lawyer will also
ascertain
that all the relevant taxes and utility bills have been
paid.
Private
purchase Contract
On
completion of the searches your lawyer will inform you
that the property is free of any problems
and
will
prepare
a private purchase agreement with the vendor to reflect
all the conditions of the sale, including the completion
date. You will be asked to pay a larger deposit usually
10% of the purchase price which will include the reservation
fee already paid. This is similar to exchanging contracts
in the UK and is legally binding on both parties. Should
you withdraw from the sale after exchanging contracts
the 10% deposit is non refundable. If the vendor withdraws
from the sale you will receive back your 10% depost plus
a further 10% penalty from the vendor - Subject to your
lawyers advice.
Escritura
On
the agreed date for completion a new Title Deed (Escritura)
will be drawn up for signature by you or your lawyer
in front of a Notary, who will also have obtained a certificate
from the Land Registry confirming that the property is
free of any charges. A Notary in Spain is empowered by
the government to make sure that all transactions are
understood
by both parties and are being carried out under the laws
of Spain. Once signed, this deed will be sent by the
Notary to the Land Registry who will register the property
in
the name of the new owner. Your lawyer will obtain a
copy of the deed from the Notary after the signing and
the original
will be returned after registration.
Costs
Apart from the
purchase price of the property you must take into consideration
the costs involved. These will vary depending
upon the property being new or a resale. The costs involved
will include VAT or Transfer Tax, Stamp Duty, Registration,
Lawyer and Notary fees. You should allow up to 10% of the
purchase price to cover these fees. After completion your lawyer will
continue to assist you with obtaining your NIE number and
Spanish Residency papers
if required and also changing the utility contracts for the
property into your name. The lawyer can also help you with
your annual tax returns as required under Spanish Law. The
purchase process in Spain, although different to the process
in the UK, is a very safe one if you employ a good lawyer.
The horror stories that you may have previously read or heard
about only apply if you try to cut corners and don´t
use an independent qualified lawyer.
Call
us for a competitive quote or complete the Contact Form
Equinox
Services, Aztec Country Club, C/Libra, Urb. Riviera del
Sol
Tel: 664 522 404 Email: info@equinoxservices.eu
Home | About
us | Legal
/ Advice | Mortgages
and Finance |Contact
us | Sitemap |
