Your solicitor will assist you in all the different steps involved in purchasing your property, and this guarantees that all legal requirements are met. They will check that the property is registered in the vendor’s name and that it is free of any mortgages, charges, debts or other liabilities.
All foreigners (permanent & non-permanent residents) require an NIE before the purchase of any property or car in Spain. Your solicitor or estate agent can assist you with this procedure as you need to obtain this in person at the foreigners department at the National Police headquarters.
As well as the actual price of a property, 10% Property Transfer Tax / Impuesto de Transmisiones Patrimoniales (ITP) is payable on all property purchases.
The purchaser is also liable for the payment of their own Legal Fees, Notary and Land Registry Fees (depending on the price of the property this usually equates to 3-4% of the value of the property).
The first document you will sign is a Reservation Contract. You will be expected to pay a deposit – typically between 3,000€ – 10% for resale properties, or a specified % for new build properties – thus reserving the property you wish to buy and securing it from possible sale to other buyers. This contract is valid for between 30 and 90 days to give lawyers time to carry out the necessary legal checks as mentioned above. Please be advised that this is a non-refundable deposit should you withdraw from the sale, as per Spanish law.
This is a Public official appointed by the Spanish government to witness the signing of all legal public documents. Upon signing the Title Deed (Escritura), the remainder of the purchase price is payable to the vendor – usually by means of a bankers draft. At this point, the notary will confirm the signing of the Title Deed, recording that the sale/purchase has been completed in their presence and understood by all parties concerned. The original signed document is retained by the notary who will apply for a formal change in the land registry (your solicitor can apply for the formal change in the land registry if you prefer).
Here at Olivia Real Estate, all fees and/or commissions for the marketing and subsequent sale of a property are payable by the vendor not the purchaser.