The first and most important step when purchasing a property in Spain, even before choosing the property you wish to purchase, is to engage a Lawyer to guide you throughout the procedure.
Once you have chosen a property your lawyer shall make all the necessary enquiries regarding the property at the Land Registry, Catastral Office, Tax Office, Town Hall, Banks, and start a Due Diligence process in order to ascertain whether the property is free of charges and encumbrances.
Reservation of the property:
• This document is signed with the vendor of the property (the Real Estate Agency or the vendor himself), in order for him to take the property off the market. Normally, a minimum of €6.000 is paid upon signing this document.
Opening a bank account and requesting a NIE number (fiscal identification number for foreigners). This document is absolutely necessary to purchase a property.
Private purchase contract:
• This contract covers all the terms, conditions and obligations of the purchase, such as: the property that is sold and its annexes, the purchase price, the conditions and obligations of each party, terms and means of payment, date of completion, etc.
• Upon exchanging the private purchase contract, the buyer shall pay from 10% to 30% of the purchase price as a confirmation of the reservation of the property.
Your lawyer is responsible for obtaining all the necessary documents prior to signing the Purchase Title Deed and drafting the Deed, as well as applying for a mortgage if necessary.
Completion of the sale:
Signing the Purchase Title Deed before the Notary Public, payment of the remaining purchase price, handing over the keys and all the documents related to the property. If necessary, the Mortgage loan Title Deed shall be signed on the same day.
Registration of the Title Deed of Purchase at the Land Registry as well as changing the name of the water and electricity supplies contracts, local rates, rubbish collection, etc.
You may also hire tax and accounting services in order to help you through the aforementioned steps, as well as paying the relevant taxes, applying for a residence permit or any other issue related to your property, yourself or your family.