Advokathuset recommends that all buyers of real estate in Spain always find a qualified lawyer to represent themselves. The buying process in Spain is a relatively simple procedure. What matters to the decisive role in the ownership of a property is the Spanish housing register, which quickly shows whether the seller owns the property, and is also free of taxation and which waiters may be affiliated.
Once you have found the property you want to buy, you will often be asked by the real estate agent to sign a booking contract while making a booking fee. This eliminates the risk of being sold to another side. The booking amount is a part of the purchase price. The size of the booking amount depends on the price of the house, but will typically be in the range of 3000-6000€. From the booking contract, the purchase price, auction date and any other agreements are stated. If the buyer withdraws from the transaction, without reasoning as stated in the booking contract, the buyer loses the reservation amount. It is recommended that the booking amount be deposited with a lawyer.
Unless an immediate payment of the full purchase price has been agreed upon, a purchase contract is hereby drawn up in which all the details of the purchase are written – the legal description of the property, purchase price, form of payment, date of transfer, etc. At the time of signature of this agreement, a percentage of the purchase price is paid to the seller at the same time. This typically represents 10%, but may vary considerably according to the terms of sale and the date of completion. The purchase contract is also double-sided, understood in the sense that if you as a buyer choose to jump from the trade after signing, you will lose 10% as a salesman, while vice versa will get them back + 10% extra in compensation,
When buying property sales properties that are not yet built or still under construction, the purchase price is usually paid in installments during the construction period. All amounts paid before completion of the project must be secured in accordance with Spanish law (BUILDING ORDENANCE LAW (LOE), LAW 38/1999). This security is provided by either a bank or an insurance company, and means that, as a buyer, you have the right to claim the sums paid back plus legal interests if the property is not completed before the contract date. The same law also obliges the developer to subscribe for a ten-year insurance, in relation to any defects and defects that will benefit the buyer.
Once the entire purchase price has been paid, the property’s (escritura) property will be rewritten from the seller’s name and over to the buyer, free of leverage and liability. This will be done by a Spanish notary, after which it will be sent to the tax office, which will determine whether to pay property tax on the sale (when buying resale properties) or whether it is a stamp duty (if the property was purchased directly by a builder ). Finally, the lap is sent for inscription, at the public Spanish property register.