Our professionals, lawyers and accountants in Marbella, with a wide experience in the different fields of the law in Spain, have the pleasure to explain the process and steps involved in the acquisition of a property in Spain.
The process for the acquisition of a property in Spain. Steps involved.
- Step 1. Once the property in Spain has been chosen and the price has been agreed, the procedure usually starts with the signing of a Reservation Document in Spain with the assistance of the Real Estate Agent, who will receive the reservation deposit.
The Reservation Document will include identity of the parties involved, price agreed, way of payment and date for finalisation of the transaction when the total price of the property has to be paid in front of a Public Notary and the keys are handed over to the purchaser.
- Step 2. Signing of Private Purchase Sale Contract in Spain. At this stage, 10% of the price is usually to be paid, less reservation deposit.
When signing the private purchase contract, you should know all the characteristics of the property, and your lawyer in Spain will have reviewed all the documentation of the property.
The contract will include any agreements between the parties depending on the characteristics of the transaction. It will include the date of the granting of the Purchase Sale Title Deed in front of the Notary.
- Step 3. Granting of Purchase Sale Title Deed in Spain.
The Notary is an independent civil servant who is responsible for the signing of the Purchase Sale Deed in accordance with the wishes of the parties and the Spanish Law. At this stage, the balance of the purchase price will be paid and the possession of the property is received.
The public deed is essential for its registration in the Land Registry, so the purchaser will become the new registered owner of the property.
- Step 4. Payment of taxes involved.
Buying and selling properties in Spain involves the payment of certain taxes:
- In case of buying a new home, the buyer will have to pay to the seller the
Value Added Tax.
- In case of buying a second-hand property, the buyer will have to pay the Transfer Tax through one of the banks appointed by the Spanish Inland Revenue.
- Step 5. Registration of the Purchase Sale at the Land Registry in Spain.
Once the sale has been completed and the taxes have been paid, it is advisable to go to the Land Registry for registration of the property in the name of the purchaser. Registration is not compulsory but strongly advisable, so the buyer will be fully protected as an owner. What is recorded in the Registry is presumed to be true and can only be changed by a judge.
DOCUMENTS THAT CERTIFY THE LEGALITY OF A PROPERTY IN SPAIN
In the Spanish legal system, there are a series of documents that certify the complete legality of a property. It is necessary to confirm that they will be available before the acquisition of the property in Spain is completed:
- Building Licence and certification from the competent technician that the construction is in accordance to the building permit granted and the project approved by the Town Hall.
- Licence of first occupation of the building, certificate of occupancy or other administrative authorisation which establish that, according to the law, the property can be used to live in.
- Bulletins signed with the companies supplying basic services (electricity, water, gas and telephone).
- When it is a new property, the existence of the necessary insurance in accordance with the Law, against defects or hidden defects in the construction.
- Certificate from the Land Registry regarding the legal status of the property. ( Nota simple), to check registered ownership and potential registered charges on the property.
Contact our lawyers specialized in the process of buying and selling a property in Spain. If you have doubts about any step, or you need us to work on your case, we are at your disposal in our law office in Marbella or visit our specialised website.
Welex, your conveyancing lawyers in Marbella, heart of the Costa del Sol, Spain.