Legal Advice

When you have found your ideal home or investment property, you will need a competent lawyer to steer you through the red tape, preferably one who speaks Spanish and English.

After you have agreed a price with the seller the first thing to do is to arrange a Reservation Deposit.  This will normally be 10% of the purchase price and will ensure that the property is taken off the market.  The Lawyers will draft a private contract between buyer and seller and a date will be fixed for completion at the Notary (approximately within one month). 

Your lawyer will do a property search and check to see if there is any debts owing on the property and will arrange to have all bills paid  fully (with  receipts) before the completion. They will also arrange  transfer of Telephone, Electricity, Rubbish bills, Community Fees and Taxes into the buyer’s name and arrange a direct debit to their bank.

At the notary you will sign the Escritura Publica (conveyencing deed) and the balance of the agreed purchase price will be paid to the seller.  You will then be the new owner. Finally the Escritura Publica needs to be registered in the Land Registry Office

The Lawyer will go to the Notary with you or, if you prefer, you can arrange for them to able to sign on you behalf in your absence (Power of Attorney).

If for any reason the buyer is unable to complete the purchase he looses his 10% deposit.  If the seller is unable to complete they are legally obliged to pay the deposit back double.

Guide To Costs

In addition to the cost of your property, you can expect to incur further expenses of up to 10% for legal fees, notary fees and taxes.

Taxes

Buyer pays Transfer Tax or ITP.  This charge is 7% on a resale property. For a New Property ("off-plan") you  pay 16% IVA and  0.5% stamp duty.

Plus Valia is a municipal tax based on the official increase in the value of the property since the last time it was sold.  The local town hall will assess the amount due, and it is usually paid by the seller.

Agents Fees are paid by the seller.

Annual Taxes.   All non resident owners are liable to two taxes per year.  We can put you in touch with an English-Speaking financial advisor to help you with this if you require.

Telephone: (0034) 952 816 913           Email: info@spanishpropertydirect.net