We know that no-one likes surprises when they are buying a property, whether in Spain or at home, so we have put together this quick guide of the sort of things and costs you need to consider when buying your dream property here in Spain.

 

Step 1: Location, location, location: A hugely important place to begin your search for the perfect property. Decide whether you want to be close to the coast or are happy being a drive inland, this can often make a huge difference on what your budget will allow you to purchase, as like anywhere else, the closer to the coast the more expensive the property.

Step 2. Budget:  Before beginning your property search, establish your price range. British buyers tend to start with their funds in Sterling, so will need to calculate their budget in euros according to the exchange rate. Remember that the rate available on the day you agree a purchase price will be different to the rate available on the day you complete, so be prepared for your final Sterling cost to rise or fall. We can put you in touch with a Currency Exchange Company to advise on this issue to ensure you get the best possible deal. You also need to factor in the buying costs that come with a Spanish property purchase, to cover purchase fees and taxes. Typical costs will be approx13% on top of the agreed purchase price. Typically the purchase of a Resale property takes between 6 and 12 weeks, allowing your Lawyer to ensure all the property checks are done and your finances are in place.

Step 3: The buying process:  When you find a property you’d like to buy, ask us about making an offer. We’ll guide you on the vendor’s expectations and what price we believe is fair and achievable. Once the offer is accepted you will be expected to sign a reservation contract and pay a reservation deposit. Typically this is €3,000 – €5,000 and will count towards the agreed purchase price. Once done, the property is reserved for you and will be removed from the open market. ( This deposit is non- refundable if you, the buyer pulls out of the agreement, if the vendor pulls out, they will be liable to pay twice the paid deposit to the buyer)

Step 4: The Legal requirements: We can help you get the right legal representation for your property purchase. With over 20 years experience selling property, we have dealt with a number of Lawyers we trust to look after our clients. They can fully explain the buying process and answer any questions or concerns you may have. On buying a Spanish property, you will need an NIE number and open a Spanish bank account, your lawyer can do this for you, also if you wish to do Power of Attorney it is advisable to do this also with the lawyer. Lawyers fees range between 1000€ -1500€ depending on which services you wish to use.

Step 5: Signing the sales contract:  Once your property is reserved, your lawyer will begin the preparation of a private purchase contract between you and the vendor, which should be signed within 30 days of reserving the property. During this process your lawyer will do all the necessary due diligence on the property and liaise with you over any specific conditions of the sale and clauses in the contract. For a resale property, a buyer is often expected to pay a deposit of around 10 per cent of the purchase price on signing the purchase contract, the rest on Completion. New Build properties are slightly different, you may need to pay up to 50% before completion, this depends on the Developers purchace contract.

Step 6: Completion day: The final stage of the buying process takes place in the office of the local notary, who will oversee the signing of the title deed by the vendor and buyer, or their legal attorneys. Only deeds authorized and signed by a registered notary are legal. Your lawyer will prepare everything and liaise with our agent to arrange a mutually convenient day for completion, when both will accompany you to the notary’s office ( if POA has been given to the lawyer, they will sign on your behalf). The lawyer will have done all the necessary changes of names for utilities etc and ensure all outstanding bills are paid by the vendor prior to the signing. The new owner will take over the property debt free and begin paying the utilities from the day of signing the purchase. On signing the deed, the buyer will be required to pay the remaining balance of the purchase price and all relevant taxes and fees. Once all this is done, the keys will be handed to the buyers lawyer or selling agent on the buyers advice.