Buying Spanish Property: the Legal Course of Action Explained
So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete 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. Be certain there are no debts or restrictions on the property you plan to purchase.
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.
A preliminary individual sale bill should be signed after both sides agree to the cost. Before the Contrato privado de compraventa is signed, the vendor must show proof of ownership, and also proof that there are no liens or judgements against the property. In Spain, debts are attached to the property, so any mortgage that was outstanding would transfer to the buyer. Nota Simple documents were developed to validate if a property has an outstanding 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. Expect to pay a deposit that ranges between 5 and 15 percent of the purchase price. This money shall be held in escrow for your benefit. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.
The Escritura de compraventa stage, is 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. Next, the seller and buyer meet and sign a contract, which is essentially a claim to the property. The purchaser will receive the public deed of conveyance, known in Spain as the escritura, 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. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.