Purchasing Spanish Property: an Explanation of the Legal Process
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. Validate that the Spanish property you plan to purchase is free of restrictive clauses and debts.
There are two different categories when it comes to the legal process of purchasing Spanish property. 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.
There should be a preliminary private sales contract signed once you have both agreed on a purchase price. 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.
The completion date, overall price, and property description will all be elaborated in the preliminary sales contract. Expect to pay a deposit that ranges between 5 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.
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. Next, the seller and buyer meet and sign a contract, which is essentially a claim to 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. In Spain, Notary Publics are public officials required to witness a deed of sale, but you should also make sure to have your own independent expert legal advice to make sure that your own interests are protected during this legal process. Part of the fees for purchasing include property tax, and legal fees for your Notary Public.
