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LEGAL GUIDE TO BUYING PROPERTY IN SPAIN

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This section is best read in conjunction with the Buyers Guide, Fees and Taxes and Additional information.

Although the whole process of buying property abroad may initially look daunting, it is really very straightforward. Follow the guidelines we have provided, take professional advice and enjoy your new home.

When you have found the property you wish to buy, your estate agent may offer to guide you through to completion of the purchase. An experienced agent will be able to do this for you, but will not be able to take full legal responsibility or be totally impartial as he represents the sellers interests primarily.

In the UK when you buy a house, it is generally accepted that you use a lawyer to carry out the conveyance; whilst many property purchases occur in Spain without the intervention of a lawyer it may be wise to consider this option when buying abroad particularly if you do not speak Spanish.

1. Making an offer.

Make a written offer, including all the points to be negotiated. These are:

• The price, (including the declared value) In Spain the purchase price may be different to the value declared on the title deed. Your lawyer will explain the reasons and historical background for this.
• Method of payment, timing of payment and the currency to be used.
• Furniture, fixtures and fittings included in the sale.
• Taxes to be paid and by whom.
• Additional points, for example repairs to be made before completion.
• Subject to mortgage approval, if appropriate.

It is usual for the buyer to pay a returnable holding deposit at this stage, in order to secure the property and the price. Most reasonable sellers would agree to this holding deposit being refundable, should a lawyer find any legal reason for the sale not to proceed.

For resale properties:

Your lawyer should establish that there are no mortgages or other charges against the property by requesting a Nota Simple from the land registry. Under Spanish Law the buyer can remain liable for payment of these mortgages unless they are removed prior to completion.

For new developments:

Your lawyer should establish that the property constructor owns the land on which he is building and has permission to build.

2. The Purchase Contract.

The purchase contract is the legally binding agreement to purchase your property. For a resale property it should contain:

• Details of the seller and the buyer.
• The purchase price
• The method of payment
• Confirmation that the Title Deed, (Escritura de Compraventa), is in the name of the seller and that this will be passed to the buyer on completion of the sale.
• A guarantee that the property is free from all encumbrances and rights of third parties.
• The taxes and costs involved and who is liable to pay them. Penalties for non fulfilment of the contract.

In addition to the above, the Purchase Contract for a property under construction will contain:

• Information regarding the ownership of the land.
• Permission to build on the land.
• Completion date for the construction.
• Details regarding the Community of Owners, where the property shares common grounds swimming pool etc.

Only contracts written in Spanish are legal in Spain. You should request an official translation and read this in conjunction with your lawyer and estate agent. If you are uncertain about any clauses or stipulations do not sign it! A non returnable deposit of 10% of the agreed purchase price now is payable, to reserve the property in your name and to remove it from the market.

Before proceeding to Completion, in addition to everything shown above, your lawyer should check:

• The sellers annual property taxes have been paid
• All community fees are paid
• All utilities, (Electricity, Water, Telephone, Gas, Waste collection) are paid.

Finally your lawyer should arrange a date for completion.

3. Completion of the sale.

The final sale document is the Title Deed, ( Escritura de Compraventa). Which is prepared by a legally qualified public official called a Notary. All property sales in Spain must be registered in a local deed registry and the Title Deed must be signed by both the seller and the buyer in the presence of the Notary.

The Notary not only witnesses the signing of the deed he will also collect the fees and taxes. Payment of the outstanding balance of the purchase price is also made in the presence of the Notary.

If you are non resident in Spain and you are buying from a Spanish person or company, then you will have to provide the Notary with a Certificate of Non Residency from your Spanish bank. This bank certificate confirms the importation of foreign currency, equal to the purchase price stated in the Escritura de Compraventa.

You do not need a Certificate of Non Residency if you are a resident in Spain or if you are buying form a non resident in Spain who already has a bank Certificate of Non Residency recorded in the Escritura of the property you are buying. Also, in this case, the buyer is allowed to pay the seller outside Spain in any currency.

4. Power of Attorney.

If you are unable to, or do not wish to, appear in person before the Notary, you can grant a Power of Attorney for a third party to appear in your place. Your lawyer will advise you about this.

Disclaimer: Casa Quest has made every effort to ensure that all the information provided is accurate. However, it is not intended to be a substitute for professional or legal advice. Regulations and laws do change and therefore Casa Quest cannot accept responsibility for any loss or damage caused by any actions, taken or not taken, as a result of using the Casa Quest website or acting on the information contained within.