What to know when buying property in Spain
The Procedure of Buying Property in Spain
If a particular property is of interest and you wish to purchase, it will be necessary to place a holding deposit and sign a reservation contract. The property will then be removed from the market at the agreed purchase price while searches are conducted. At this juncture we suggest you instruct an Abogado (lawyer) to act on your behalf for the conveyance, which we can arrange for you if you so require.
The Role of the Abogado
The Abogado is a Spanish Lawyer appointed to safeguard your interests and legal rights to clear title of the property. He will prepare a purchase contract to be signed by you and the vendor, to agree the price and completion date etc. The Abogado will search the property for any outstanding debts, tax arrears and unpaid bills. He will prepare the title deeds – Escritura de Compraventa – to be notarised by the ‘Notario Publico’ (Notary) on completion and pay any outstanding debts.
The Notario Publico
Appointed by the government the Notario Publico is responsible for agreeing the notarial value of the property and that all taxes have been paid. Once he is satisfied that everything is in order he will then instruct you to sign the Escritura de Compraventa in his presence and he will counter-sign on behalf of the government. Once this has been completed he will lodge the Escritura de Compraventa with the local land registry office.
Total Legal Costs
As a guide you should calculate between 10 and 12 percent to add to the purchase price for legal costs. This will cover the Transfer Tax, Abogado, Notario and Land Registration fees.