Global Premises

Once youve chosen your ideal property and found a Spanish mortgage how do you go about completing the purchase?

It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. Validate that the Spanish property you plan to purchase is free of restrictive clauses and debts.

The legal process for buying a Spanish property falls into two different categories. First you have the Contrato privado de compraventa, or the preliminary contract, and then you have the Escritura de compravents, or completion contract.

Once the buyer and seller are in agreement on the price then they need to sign a preliminary sales contract. The vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges, Before this Contrato privado de compraventa will be signed. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. Nota Simple documents are designed to confirm whether or not a property contains any outstanding 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. When you reach this point, you can expect to pay a deposit of 5-15%. A bonded client account is where the funds will be kept for you. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.

Escritura de compraventa is otherwise known as 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. Also known in Spain as the escritura, the purchaser will received this deed which is usually 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. In Spain, all deeds of sale must be witnessed by a Notary Public, which is a public official in that country. However, you need to have your own legal counsel to protect your own interests during the transaction. Also keep in mind that as the purchaser you will be required to pay property sales taxes as well as the legal fees for the Notary Public.