June 12, 2024 7:13 pm

The procedure for purchasing home in Spain

Purchasing a home in Spain often involves the following steps. The buyer submits an offer first. The buyer pays a deposit, usually 10% of the purchase price, and the seller signs a preliminary contract (contrato privado de compravento) if this is approved.

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The buyer then sets up any mortgage that they need, albeit ideally they had already spoken with the mortgage provider about what they needed. There are several knowledgeable experts in Spain, like UCI Mortgages, if you need assistance with mortgages. When the escritura de compravento, or contract of sale, is signed in front of a notary, all outstanding fees and charges, including taxes, are payable.

Looking at properties in Spain and putting in a bid

Generally, you have to use the seller’s estate agent to submit an offer when you’ve located a house you want.

The asking price for the property is only an indication and not a demand; like in other nations, prices are negotiable. It seems sensible to begin discussions below the asking price, but not so low as to enrage the seller, unless the price is really appealing or you are up against other purchasers.

Simple pricing talks are frequently conducted verbally. Your notary should put your offer in writing when you come to an outline agreement.

Hiring a notary or solicitor

Legally speaking, a notary’s services are not required to finalize the deal. Many mortgage lenders demand it and strongly advise hiring a lawyer to do the due diligence.

The property must be registered by the buyer. Without completing the entire registration process, your notary may charge for this service and/or notify the register office that the transaction has occurred.

Every attorney in practice in Spain ought to be registered with the Colegio de Abogados, the local bar society. You can ask for their registration number and then check it with the bar association. Of course, being registered does not imply being honest or knowledgeable, but it is a decent starting point to demand.

Abogacía Española, the national website for Spanish attorneys, has a list of all the bar associations.

Setting up an evaluation

Although it’s not recommended, purchasing a home in Spain without a house survey is doable. A house survey assists you in making sure the property is free of major flaws that can come back to bother you in the future.

There are typically two primary survey kinds available for sites that are already in use. A surface-level survey that provides you with an unbiased estimate of the property’s market worth is called a valuation report.

A building survey delves further, examining the property’s structural state and highlighting any significant problems. Although building surveys are more costly than value assessments, they offer a more thorough overview of the state of the property.

Translators for the acquisition of your Spanish home

Lists of attorneys and translators who are bilingual in Spanish and another language are frequently provided by governments. The list of English-speaking attorneys and interpreters provided by the British Embassy is a helpful tool.

Relocating to your Spanish home

Insurance

Purchasing a property in Spain comes with the strongly advised benefit of having house insurance.

Mortgage lenders frequently need a building insurance coverage, which protects the property’s structure against fire, natural catastrophes, and other harm.

Insurance for your personal things within your house is not legally required. On the other hand, if you want to rent out your house or you are frequently away from home, it can be a prudent investment.

Telecommunication and utility services

One of the more time-consuming chores when purchasing a property in Spain is setting up the utilities. It’s possible that the prior owner left policies in place that you can continue.

Municipalities are in charge of managing waste disposal, and often charge yearly fees for garbage pickup. You may shop around for better rates on other utilities like gas, electricity, and water before choosing a supplier.

Employing a contractor could be worthwhile for some aspects of the relocation. These are often found on the internet or through searches on websites like TaskRabbit. Verify the credentials your contractor requires since certain work involving gas, plumbing, or electricity must be completed by experts.

Purchasing land in Spain to construct a new home

Spain has always been a favorite destination for foreign purchasers searching for vacation properties. Sometimes the volume of inexperienced overseas purchasers has given dishonest developers and real estate brokers a chance to market houses that aren’t real.

Sometimes buildings proceed without the necessary planning authorization, and the local authority finally demolishes the houses. In some cases, the property’s quality has fallen short of expectations, necessitating expensive repairs.

Notices have been issued by the British Foreign Office cautioning foreign buyers not to incur unwarranted risks. They advise, at the very least, looking into:

The qualifications of the attorneys or real estate brokers engaged

Register of Land (Registro de la Propriedad)

that the necessary planning authorization is in place

that there are no unpaid obligations on the property

if the building is structurally sound (this may be verified by an architect or surveyor).

The land registry has the majority of this data available upon request via phone, fax, email, or in-person. Go to the national website, www.registradores.org (Spanish only), to locate the relevant land register office.

Purchasing a brand-new house in Spain

Like everywhere else, the worst real estate scams in Spain involve undeveloped or incomplete homes. When purchasing a property that does not yet exist, care is advised even if malevolent intent is uncommon. Ideally, you ought to:

Verify the company’s existence and make sure the land registry has the project registered.

Make sure the planning authorization has been approved by contacting the city hall in your community.

Don’t sign a document you don’t fully comprehend.

Get a third party to help with any translations.

Request documentation proving that any money contributed (such as a deposit) is being saved or used wisely.

Verify that, in the event that the property is not developed, you will receive your money back.

You can purchase land and have a property built yourself as a non-resident. In this situation, getting sound legal counsel is even more crucial as you’ll need to make sure that the contracts you have with builders are suitable and comprehensive.