11.01.09
Buying Spanish Property: an Explanation of the Legal Process
Youve found the house and negotiated a price. Youve arranged your Spanish mortgages All there is to do now is complete the purchase. How?
It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. You will want to make sure that the Spanish property you are purchasing is free of restrictive clauses and debts.
There are two different categories in the Spanish legal processes for the purchase of property. First you have the preliminary contract, or Contrato privado de compraventa, and then you have the completion contract, or Escritura de compraventa.
Once the buyer and seller are in agreement on the price then they need to sign a preliminary sales contract. The vendor must provide proof that he or she owns the property free of any charges before this Contrato privado de compraventa has been signed. In Spain, debts are attached to the property, so any mortgage that was outstanding would transfer to the buyer. Nota Simple determins which properties contain overdue debts.
The preliminary sales contract will be drawn up to contain all of the necessary details including the date of completion, the purchase price and the description of the property. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. This money is held for you in a secure customer account. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.
Escritura de compraventa is otherwise known as the second or final contract 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. Also known in Spain as the escritura, the purchaser will received this deed which is usually in front of a Notary Public. To make this legal, a copy of the dded must get to a tax office, and then sent to a 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. Part of the fees for purchasing include property tax, and legal fees for your Notary Public.
