If you have decided to buy a property in Spain and the time has come to sign your deed of purchase, Welex, a law and accountant firm on the Costa del Sol, is pleased to explain the details relating to your deed of purchase in Spain: The Purchase Sale Title Deed of a property in Spain.
Buying a property in Spain is an exciting event in anyone’s life. However, behind the excitement of finding the home of your dreams and taking the step towards ownership, lies a fundamental legal process: The Purchase Sale Title Deed. At Welex, Marbella’s leading law and accountant firm, we understand that this process can be both exciting and overwhelming.
The Purchase Sale Title Deed of a property in Spain is a document that will be executed by the selling party and the buying party before a Spanish notary public.
The notary is an independent public official and as the buyer, you can choose the notary before whom you wish to sign your deed in Spain. With reference to notary fees, these are set out in a Tariff of 17 November 1989, which are applied by all notaries, who will provide an invoice for their services and costs.
The deed of sale is a public document different from the private purchase contract, which is executed by the parties to conclude the purchase transaction, at which time the remaining purchase price is usually paid and possession of the property is handed over to the buyer in Spain.
The authorized copy of the deed will be presented to the Land Registry in Spain to register the property in the name of the owner after payment of the taxes applicable to the transaction. It is advisable to distinguish this authorized copy, signed by the Notary and with the corresponding stamps that guarantee its authenticity, from the simple copy, which is a copy that does not incorporate the signature of the Notary, but does incorporate the full content of the signed deed.
In this way the Notary will identify the parties by means of their valid identity documents or passports and will check the document by virtue of which the seller is the owner of the property he is selling in Spain.
In addition, information from the corresponding Land Registry in Spain will be incorporated into your deed of sale, in order to verify the ownership of the seller and possible encumbrances registered on the property in Spain.
The deed of sale in Spain will also include other documents, such as the cadastral reference of the property and verification of IBI debt, certificate issued by the Community of Owners to verify the payment of the Community fees and Energy Efficiency Certificate. It is the responsibility of the seller to deliver these last two documents, the certificate of the Community of Owners and the Energy Efficiency Certificate.
In relation to the payment of the purchase price in Spain, the means of payment of all the payments of the price made, including those made prior to the signing of the deed, by cheque or transfer, will be stated in the deed, and both the debit account and the credit account of said payments will be identified.
Finally, the notary will advise you of the obligations to pay the taxes that arise on the occasion of the sale in Spain, these being the payment of the Capital Gains Tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) which must be paid by the seller and the Transfer Tax (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados) which must be paid by the buyer.
If you wish to know more about the signing of your deed of sale, please do not hesitate to contact our offices. We will prepare your document, obtain a draft of the same for your review and we will assist you at the Notary’s office for the signing of the deed in Spain.