A Guide to Buying Property in Spain
Here is brief guide to purchasing a property in Spain. We always advise our clients of the importance of employing a qualified lawyer when making this important purchase. Please go to our "Services" section to ask questions without charge, or obligation from an experienced property lawyer with offices here on the Costa del Sol.
Once you have found your home in the sun the normal procedure towards completion of the purchase and collecting the keys is as follows:
- Place a reservation deposit with either your Real Estate agent, or your lawyer. Typically this will be 6,000€. You will be given a receipt for this deposit and you will be asked to sign a Reservation Form. This form will typically acknowledge the receipt of the deposit monies, the agreed date for paying the balance of 10% of the agreed selling price so that the Private Purchase contract can be signed and a date for completion at the notary. Additional information will also be added such as "subject to agreed inventory" or " subject to survey". All parties to the contract will sign this form, namely, the buyer, the seller and the listing Real Estate agent. Copies of the final signed document will be distributed to all parties and the respective lawyers. At this stage the property is taken off the market.
- Costs for purchasing a property in Spain vary according to the value of the property you are purchasing and whether a mortgage is required. As a rule of thumb you should allow for around 10% of the purchase price if purchasing without a mortgage and 14% if requiring a mortgage. These costs include notary fees, transfer taxes, mortgage arrangement fees, Land Registry fees and lawyers fees.
- If a mortgage is required it is necessary for a valuation to be provided by a valuation company employed by the lending bank. Once instructed the valuation is normally completed with 10 working days.
- Sign the Private Purchase Contract. This will be done when the respective lawyers are satisfied that the conveyance is complete. At this stage the buyer will transfer funds equivalent to 10% of the agreed selling price minus the initial reservation deposit, following signing these funds are then sent to the seller.Normally this contract is signed within 2 to 3 weeks from placing the initial Reservation deposit. At this stage penalties can be incurred in the event of non completion by either the purchaser, or seller.
- Completion. This will normally take place within 2 to 3 weeks from the signing of the Private Purchase contract. Completion takes place in front of a nominated notary. At this stage all outstanding debts on the property will have been cleared, completion monies would be cleared funds and a new Title Deed ( Escritura) would be signed and copies issued along with a summary document known as a Nota Simple. Your lawyer will normally act as a translator.
- You are then given the keys to your new property!
Your lawyer will arrange as part of the above process to obtain an N.I.E. number. This is your fiscal identification number and is required before you can purchase a property in Spain. At the same time your lawyer will provide you with a statement of account for monies paid, open a bank account on your behalf and arrange for the utility services to be put in your name.
We are experts in providing accurate valuations for all types of residential properties on the Costa del Sol. If you are looking to sell your property anywhere on the coast and inland Andersen Fox S.L. would be delighted to provide you with a professional valuation.
Generally our valuations are free of charge and without any obligation to market your property exclusively with us. Charges apply for valuations for probate purposes and if you are not yet committed to selling and have requested a written valuation for interest purposes only.
Please contact us for a valuation. We will make an arrangement to visit your property at a mutually agreeable day and time. Please ensure that the property is presented as well as possible as photos will be taken on the day of the visit.
In order to be compliant with Spanish legislation and so that we are able to work quickly on your behalf once a buyer is found we require a copy of the following documents:
- A NOTA SIMPLE THAT MUST BE LESS THAN 12 WEEKS OLD
- COPY OF THE LAST PAID RECEIPT FOR COMMUNITY FEES (IF APPLICABLE)
- COPY OF THE LAST PAID I.B.I RECEIPT (LOCAL RATES)
- COPY OF THE LAST PAID BASURA RECEIPT (RUBBISH COLLECTION)
- COPY OF THE FIRST OCCUPATION LICENSE (IF APPLICABLE)
- COPY OF THE ENERGY CERTIFICATE (LAW FROM 01/06/2013. - see LINK "Newsletter" for details)
- THE OWNERS N.I.E. NUMBER
It would also be very useful to have on file the following documents:
- A COPY OF THE ESCRITURA (TITLE DEEDS)
- A COPY OF THE LAST PAID WATER BILL
- A COPY OF THE LAST PAID ELECTRICITY BILL
- A COPY OF ANY PLANS FOR THE PROPERTY
- A COPY OF ANY LICENSES THAT YOU HAVE FOR BUILDING WORKS NOW COMPLETED
So that we are able to load all the details of your property on to the system it is important to have these documents on, or before the day of the valuation.
If you are unsure as to how to source any of the above documents please contact us and we would be pleased to advise you.
The documents required are the same as above, but in addition we require a copy of your BUILDINGS AND CONTENTS INSURANCE INCLUDING THIRD PARTY LIABILITY.
THE LISTING AGREEMENT FORM
You will be asked to sign our Listing Agreement Form. This gives us the authority to commence the marketing of your property and highlights our commission rates, understanding of the Data Protection Act and our compliance with Decreto 218. Also detailed is information regarding a Reservation deposit once a buyer is found.
THE MARKETING OF YOUR PROPERTY
Andersen Fox S.L. have access to a world wide marketing machine. We have numerous overseas agents operating in many countries around the world. We also have an exclusive agreement with a Swiss agency introducing Swiss clients directly to us.
Our quarterly Property Magazine is widely distributed on the Costa del Sol and is a source of many clients.
We subscribe to the leading property portals and search engines for the locations we work in. These include:
- RESALES ON LINE
- THINK SPAIN
OUR WEB SITE
This is the most modern and up to date site currently available. The site is compatible with all Smart devices and includes QR code and Mobiagent technology.
ONCE YOUR PROPERTY IS MARKETED WITH ANDERSEN FOX S.L. IT WILL ALSO BE SHOWN ON THE SYTEMS OF HUNDREDS OF OTHER AGENTS ON THE COSTA DEL SOL. SO, UNLESS YOU WISH TO DO SO, IT IS NOT NECESSARY TO LIST YOUR PROPERTY WITH ANY OTHER REAL ESTATE AGENT.
YOUR DECISION TO SELL
Selling your property can be a daunting and stressful process. Andersen Fox S.L. will do all they can to make this process as trouble free as possible and to introduce a buyer as soon as possible.
Vendors decide to sell for all types of reasons. What is important to appreciate from the outset is that a property can only be sold at a price that reflects the prevailing market conditions. One of the main reasons for a property not to complete the selling process is when a buyer is found the agreed selling price does not correlate with the buyer's bank valuation for mortgage purposes. Our accurate and professional valuations will explain this in detail to you at the time of our visit.
VIEWING YOUR PROPERTY
It is essential that we can have quick and easy access to your property to show to potential purchasers. Many of our clients are only available for limited duration and often at short notice.
It is important that the vendor, or the nominated key holder is available to meet these demands.
For the absentee Landlord we look after numerous keys to properties and would be pleased to hold a set of keys for your property.
All of our clients viewing properties are as fully qualified as possible prior to viewing a property.
We will never allow clients to visit a property unaccompanied, or as a "drive past".
KEEPING YOU INFORMED
As a matter of policy we always provide our vendors with feedback following a viewing. This is also done if the owner is absent at the time of the viewing.
KEEPING US INFORMED
Please let us know if you wish to reduce the marketing price of your property. It is essential that the marketing price is the same with all agents marketing the property. If you have a buyer for the property not sourced from Andersen Fox S.L. please let us know so that we won't trouble you again.
The seller is responsible for the following costs:
- PLUS VALIA
- LAWYERS FEES
- OUR COMMISSION - 5% of the selling price + VAT
- CAPITAL GAINS TAX
In addition there will also be (in some cases) 3% Government Retention.
As a general rule of thumb the seller should budget for costs of around 10% of the selling price.
This will be dependent on your age and tax status.
Please go to our LINK "Services" section for quick and free legal advise from a lawyer who can explain your costs to you.
A BUYER IS FOUND!
Once a purchaser for your property is found we will inform you immediately as to the offer price and we will commence negotiations on your behalf. Once the selling price has been agreed we will inform respective lawyers and send all relevant paperwork to their offices. You will also be asked to sign a Reservation Offer ( LINK see "The Buyer") which details dates for the signing of the Private Purchase Contract and completion date for the notary.
Chris and Denise Hanson
We would like to thank everyone (but especially David) at Andersen Fox for their help during our recent purchase in Spain. From beginning to completion, and beyond, they have been extremely attentive and kind. Looking back it is hard to believe, but true, that we went from making first contact to having an offer accepted within two weeks.
David got back to our initial inquiry by email and we arranged to come over to Spain for a viewing. David met up with us as arranged on the Saturday morning and took us to see the property that we had picked out plus three others that he had matched to our brief. It was very exciting and David answered our questions without ever being pushy. We knew within minutes which property we wanted, but we left David on the Saturday afternoon promising to talk things over between ourselves. A quick email was all that was needed to arrange a second viewing on the Monday. We made an offer and David negotiated on our behalf with the vendor. Offer accepted, David introduced us to Raul, our solicitor, who did all the legal work for us.
Our week in Spain concluded with visits to the Notario and a local bank. Everyone was very helpful and friendly. Back in England, David kept in touch. Obviously we had to arrange documentation and finance, but things went quickly and smoothly. We completed at the beginning of April and a week later, we arrived in Spain to be met by David with the keys. David told us that we could get in touch with him if we had any questions. Obviously there have been one or two things that we have not known and David has been very approachable and helped us out as he promised. We are delighted with our new home in Spain and very grateful to Andersen Fox, who we recommend wholeheartedly to anyone who is thinking of making the move over here.
Many thanks, Chris and Denise Hanson