The Spanish Property Buying Process

The process of purchasing a property in Spain may be slightly different to what you are used to. Below is a general guide to each stage of the property purchase.

If required, Barrington Homes have recommended lawyers who can carefully guide you through all the steps of your property purchase ensuring a smooth and careful transaction is made and also that you are kept fully informed every step of the way.

STEP 1     -  RESERVATION DEPOSIT:

Once you have chosen your new home, the first step is to lodge a deposit with the Estate Agent or your Lawyer  (usually €6000) and sign a reservation document. This will remove the property from the market until the private contract is signed and commits you to buying the property. This money is non refundable unless specifically stated in the reservation document.

STEP 2     -  PRIVATE CONTRACT: (no more than 1 month after the signing of the reservation deposit)

The intervention of the lawyer is essential at this time in order that the terms and conditions of the offer are correct. The lawyer will also complete a thorough conveyance of the property to ensure the purchase is completed free of any previous charges or taxes on the property. A payment of 10% of the total sale price of the property (including the €6000 reservation deposit) is now paid to the vendor

STEP 3     -  COMPLETION: (no more than 2 months after the signing of the Private Contract)

The purchase is formally completed when the title deeds are signed before a Notary. The agreed balance of the purchase price is paid and the ownership of the property is given to the buyer.

IMPORTANT NOTICES:

Costs: Allow approximately an additional 10 % (or 12.5% if you require a mortgage) of the purchase price for costs and expenses. This will allow for Property Transfer Tax (I.V.A.) 7%, lawyers fees, notary fees and stamp duty of approximately 3%. If a mortgage for the property is required an additional arrangement fee will also be charged by the bank.

Lawyer: Barrington Homes strongly recommend that you engage a lawyer for all property transactions it is they who will guide you through all legal procedures. They will provide the legal guarantees for the purchase of the property ensuring that Spanish legal requirements are met, that the property is bought free of encumbrances, charges, debts and up to date in all its payments of local contributions and community charges.

Mortgage: Mortgages on a second home are available from Spanish banks. The rates and conditions are quite favorable in comparison to U.K. lenders, however the percentage you are able to borrow is more limited. Before committing yourself to purchasing a property always be sure that a mortgage, should you require one, would be available to you.

For more information about Mortgages in Spain click here.