PURCHASING PROPERTY IN SPAIN

The buying process of purchasing a property in Spain is different than in the UK , although checks and enquiries can be made in a similar way:

NOTARIO is a public official who records the fact that the sale/purchase has been signed in his presence and understood by both parties. He acts impartially for the vendor and purchaser, and does not give legal advice or protect your interests.

HOLDING FEE, which is often payable once you have found a property, allows the property to be taken off the market whilst your Solicitor carries out the searches, and for you arrange the finance.

CONTRATO DE COMPRAVENTA is the purchase contract, and once it is signed, you will need to pay a DEPOSIT of 10% or up to at least 20% if the property is new. At this stage, both parties are bound by the contract. Sometimes a clause may be added, to allow either party to withdraw, although this would mean the purchaser losing his deposit, or the vendor paying double the amount of deposit to the purchaser.

ESCRITURA is the deed of conveyance and needs to be signed by all parties, when the final purchase settlement takes place. It then has to be entered into the Property Register, which proves the official ownership of the property.

NOTA SIMPLE is an extract from the Property Register, which shows the legal registration and any charges on the property. This document has to be produced in the initial stages of applying for a mortgage, otherwise it will prevent the valuation from being carried out.

LAWS in Spain are different than in the UK , and it is strongly recommended that you employ the services of an English speaking Solicitor who is familiar with Spanish procedures.

INHERITANCE LAWS differ from the UK and it is normally recommended to take out a Spanish Will to cover joint ownership, ensuring that the property is passed to the survivor.

VALUATIONS of property in Spain have to be carried out by law, and are not market valuations. They are based on an average of several different properties in the same area, which have recently been sold. The declared sale price in the Property Register is not always the full purchase price, due to tax evasion, and this can reflect on the valuation. Therefore, this can reduce the amount of mortgage available, based on the lower valuation figure, which is not a true reflection of the market price.

NEWLY BUILT PROPERTIES have to be registered by the builder at the Property Registry. Until this has been done, and completion certificates produced, the mortgage lender cannot arrange for the valuation to be carried out. Spanish law dictates that property cannot be registered until completion, therefore, if a builder requires Stage Payments, the Spanish lenders are unable to help with this facility.