Purchasing Spanish Property: The legal course of action explained.
Once you’ve chosen your ideal property and found a mortgage in Spain how do you go about completing the purchase?
It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. Validate that the Spanish property you plan to purchase is free of restrictive clauses and debts.
Find a Solicitor that can thoroughly research the Spanish property that you are interested in purchasing as well as someone that can provide you with a Nota Simple, rather than simply relying upon an estate agency or a friend’s word for assistance. Verify that the solicitor you choose has the capablity to check that the vendor is the true owner in the property’s registry as well as whether or not there are any outstanding mortgages .
The legal process for purchasing property located in Spain falls under two types of transactions. The first legal document is the preliminary contract, known as Contrato privado de compraventa, and the second is the completion contract, known as Escritura de compraventa.
Once both parties have agreed to the price, then a preliminary private sales contract should be signed. Before this Contrato privado de compraventa has been signed, however, the vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges. In Spain, debts are attached to the property, so any Spanish Mortgages that was outstanding would transfer to the buyer. Nota Simple determins which properties contain overdue debts.
Details to be included in the draft sales contract will include the date of closure, agreed upon purchase price and a detailed accounting of the property being purchased. Expect to pay a deposit that ranges between 5 and 15 percent of the purchase price. A bonded client account is where the funds will be kept for you. A person would theoretically be able to sign the initial sales contract without a deposit, but it isn’t necessarily a good idea.
The ultimate stage is the decond stage only as it will decide the future of the contract. It is also known as Escritura de compraventa stage. The customer will need to pay all fees and the price of the product on the date of completion. The buyer and seller will meet to finalize the deal with a contract, which is the same as a deed on the property. In front of a Notary Public the buyer will receive the deed of conveyance which is known as escritura in Spain. In order for everything to be legal a copy of the deed will have to go through the tax office and property registry. In Spain, all deeds of sale must be witnessed by a Notary Public, which is a public official in that country. However, you need to have your own legal counsel to protect your own interests during the transaction. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.
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