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Purchasing Property in Spain: An explanation of the legal course of action.

By Editor • Jul 9th, 2010 • Category: Spain

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You’ve found the house and negotiated a price. You’ve arranged your Spanish mortgage. All there is to do now is complete the purchase. How?

Many foreign countries have different regulations regarding the buying and selling of property; this includes Spain where such transactions are regulated. As such hiring an English speaking lawyer would be advisable. Be certain there are no debts or restrictions on the property you plan to purchase.

Find a Solicitor that can thoroughly research the Spanish property that you are interested in purchasing as well as someone that can provide you with a Nota Simple, rather than simply relying upon an estate agency or a friend’s word for assistance. In selecting a solicitor, make sure he or she can properly check the property’s registry, as well as identify if the property is owned by the vendor or not, and if there are any outstanding mortgages as well.

There are two different categories in the Spanish legal processes for the purchase of property. First you have the preliminary contract, or Contrato privado de compraventa, and then you have the completion contract, or Escritura de compraventa.

There should be a preliminary private sales contract signed once you have both agreed on a purchase price. Before the Contrato privado de compraventa is signed, the vendor must show proof of ownership, and also proof that there are no liens or judgements against the property. Debts are charged to the property themselves in Spain, and any outstanding Spanish Mortgages amount would then be passed on to the purchaser. Nota Simple documents were developed to validate if a property has an outstanding debts.

The completion date, overall price, and property description will all be elaborated in the preliminary sales contract. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. A bonded client account is where the funds will be kept for you. You can sign the private preliminary sales contract and not put down a deposit but it is not advised.

The ultimate stage is the decond stage only as it will decide the future of the contract. It is also known as Escritura de compraventa stage. On the completion date, the balance of the price of purchase and all fees need to be paid by the purchaser. Next, the seller and buyer meet and sign a contract, which is essentially a claim to the property. Also known in Spain as the escritura, the purchaser will received this deed which is usually in front of a Notary Public. To make this legal, a copy of the dded must get to a tax office, and then sent to a property registry. In Spain, Notary Publics are public officials required to witness a deed of sale, but you should also make sure to have your own independent expert legal advice to make sure that your own interests are protected during this legal process. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.