Think of Blue Sea as your personal property agent - feel free to send us property details or references from other websites and we will do everything else, from obtaining photographs to arranging your list of appointments.
Secondly, find a good efficient Lawyer to advise and assist you. You may have friends who can recommend one to you, or your Estate Agent should be able to recommend a range of independent lawyers, enabling you to make your own choice. Blue Sea will be more than happy to help with suggesting a good lawyer.
Once you have chosen a good Estate Agent, with the right experience and knowledge of the property market and the local area, they will be able to help you find the most suitable property, we endeavor to find the most suitable property to match your search requirements.
A good agent will listen to your requirements and show you the best selection of properties available taking into consideration up and coming areas to invest in and at the same time comparing prices and quality.
When you have found the right property, ensure you request all the details relating to the outgoings payable every year to maintain it; namely the charges imposed by the Town Hall, community fees, charges for waste collection, water rates, electricity charges, and Property Income & Wealth Tax. It's very important you understand the annual running costs associated with the property and its purchase.
When you have then made a decision as to the property you want to buy and the price has been agreed, you will be asked to make an immediate payment of a deposit (normally €3,000 - 6,000).
Typically, the reservation contract would set out the basic terms and conditions of the purchase and would then be approved and signed by both the buyer and the vendor. This is a temporary reservation document only. Such a document would include:
- Full name of buyer and vendor
- Price of the property
- Property address
- Date to sign a “private purchase contract”
- Other special conditions (subject to finance)
This deposit ensures that the property is taken off the market, and at the same time showing the vendor that you are serious about purchasing their property. From this point you will generally have a period of between ten and fifteen days to exchange contracts. During this time your lawyer will carry out all the necessary legal searches.
From here on, until completion of the purchase, the lawyer will assist you in all the different steps involved in the transaction. There are many excellent English-speaking Spanish lawyers in Spain and choosing the right lawyer is your guarantee that Spanish legal requirements are met, that the property is registered in the vendor's name and that it is free of any mortgages, charges, encumbrances, debts or other liabilities. Your lawyer will negotiate and discuss the purchase terms with the vendor's lawyer. The terms should not be limited solely to price, but should cover in detail all your requirements such as the completion date, method of payment, etc. They will also assist you with your applications for an NIE number (a tax identification number) and the opening of a Spanish bank account - both legal requirements for owning a property in Spain.
Once all the searches have been satisfactorily carried out, the lawyers will draw up the private purchase contract. On a resale property, you will normally pay a deposit of 10% of the purchase price on exchange of contracts. This deposit is not normally refundable if you then back out of the purchase for any reason. Conversely, if the vendor fails to perform their obligations, you will be entitled to the resolution of the contract enabling you to claim damages or to demand the obligatory fulfillment of the contract.
Finally on the day fixed for completion, your lawyer will go to the Public Notary to sign the Title Deeds, making the final payment to the vendor's lawyer, who will simultaneously pass over possession of the property to you, handing over the keys.
At this stage, the sale is complete and immediately your lawyer will have the original title deed submitted to the Land Registry for registration of your title. Your lawyer can also arrange for the transfer of utilities and services such as water and electricity, into your name, and organize their payment through your Spanish bank account.
Once your purchase has completed, we would also recommend that your lawyer draws up a Spanish will for you, to ensure that your Spanish assets are dealt with as you would wish them to be.
- 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category
- 1% Notary fee ( Notarization of property cost)
- 1% Legal fees ( a fee charged by your selected lawyer to conduct the due diligence
- 1.5% Stamp Duty Tax ( A tax charged to make all documents legally effective)
- If you should require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank