10.04.09
BuyingProperty in Spain: an Explanation of the Legal System
So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete the purchase
Buying property in Spain is highly regulated. The best thing you can do to protect yourself and your money is to hire an English-speaking lawyer or legal counsel to help you during the purchase and negotiation. Be certain there are no debts or restrictions on the property you plan to purchase.
The legal process for buying a Spanish property falls into two different categories. First you have the Contrato privado de compraventa, or the preliminary contract, and then you have the Escritura de compravents, or completion contract.
A preliminary individual sale bill should be signed after both sides agree to the cost. The vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges, Before this Contrato privado de compraventa will be signed. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. 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. When you reach this point, you can expect to pay a deposit of 5-15%. This money shall be held in escrow for your benefit. 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 vendor and the purchaser will then come together to sign the contract, which is equivalent to a deed on the property. Also known in Spain as the escritura, the purchaser will received this deed which is usually in front of a Notary Public. In order for everything to be legal a copy of the deed will have to go through the tax office and property registry. If you are in Spain, a Notary Public will be required as a witness on you deed of sale. Don’t just rely in that, though. You will want to have your own lawyer to keep your best interests foremost throughout the proceeeding. While buying any property do remember that property sales taxes and legal fees for the Notary Public is also to be paid by you only.
