BuyingProperty in Spain: an Explanation of the Legal Course of Action
Youve found the house and negotiated a price. Youve arranged your Spanish mortgages All there is to do now is complete the purchase. How?
It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. Be certain there are no debts or restrictions on the property you plan to purchase.
The legal process for buying a Spanish property falls into two different categories. The first legal document is the preliminary contract, known as Contrato privado de compraventa, and the second is the completion contract, known as Escritura de compraventa.
Once the buyer and seller are in agreement on the price then they need to sign a preliminary sales contract. Before this Contrato privado de compraventa has been signed, however, the vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. Nota Simple tells about outstanding debts.
Details such as completion date, price and description will be written in the first sales contract. Expect to pay a deposit that ranges between 5 and 15 percent of the purchase price. This money is held for you in a secure customer account. A person would theoretically be able to sign the initial sales contract without a deposit, but it isn’t necessarily a good idea.
The second stage is the final contract stage, or the Escritura de compraventa stage. The customer will need to pay all fees and the price of the product on the date of completion. Both the vendor and the buyer must sign the contract at the same time. This contract is equivalent to a deed on the purchased property. The purchaser will receive the public deed of conveyance, known in Spain as the escritura, in front of a Notary Public. In order for everything to be legal a copy of the deed will have to go through the tax office and property registry. If you are in Spain, a Notary Public will be required as a witness on you deed of sale. Don’t just rely in that, though. You will want to have your own lawyer to keep your best interests foremost throughout the proceeeding. While buying any property do remember that property sales taxes and legal fees for the Notary Public is also to be paid by you only.
