PurchasingProperty in Spain: the Legal Course of Action Explained
Tuesday, November 3rd, 2009So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete the purchase
In Spain, the process of purchasing Spanish property is regulated, and the best thing that you can do to protect your interests is to employ an English-speaking solicitor or lawyer to assist you. Make sure that the Spanish property is free of restrictive clauses and debts.
There are two different categories when it comes to the legal process of purchasing Spanish property. 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.
A preliminary individual sale bill should be signed after both sides agree to the cost. 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. It is Spanish law to charge all outstanding debts to the actual property, and any remaining debt would be the new owner’s responsibility. Nota Simple determins which properties contain overdue debts.
Details to be included in the draft sales contract will include the date of closure, agreed upon purchase price and a detailed accounting of the property being purchased. A 5% to 15% deposit of the final purchase price will be required. 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 Escritura de compraventa stage, is the second or final contract stage. The customer will need to pay all fees and the price of the product on the date of completion. The vendor and the purchaser will then come together to sign the contract, which is equivalent to a deed on the property. In front of a Notary Public the buyer will receive the deed of conveyance which is known as escritura in Spain. A photocopy of the deed will be provided to the tax official and property registrat to ensure everything is legitimate. 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. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.