Spanish Property Conveyancing

There are certain standard processes that are followed when purchasing a property in Spain, which are outlined in brief below. However, this document is not intended to replace proper legal advice, so please ask a qualified lawyer to assess you individual case.

Golden Rules When Purchasing In Spain

Get Everything In Writing

Do not hand over any deposit unless it is accompanied by written guarantees clearly laying out terms of sale. Never hand a deposit directly to a private vendor. All reputable agents and developers will hold your deposit in a protected client account or your lawyer's client account if you prefer.

The next stage

Whilst your chosen property is being kept off the market, your lawyer will make all the necessary searches to ensure the property is free and clean of any debts or charges. If its in a new development, your lawyer will ensure all the necessary licences and bank guarantees are in place. After approximately 2-3 weeks it is customary to exchange contracts at which time 10% of the purchase value must be paid if it is a resale and 30-40% must be paid if it is a development.

Final Completion

A sale is formally completed when the deeds or escitura are signed before a notary, where full payment is made and possession is formally handed over to the buyer.

Purchasing costs

Apart from the purchase price of the property its important to note tat there are several fees and taxes involved. As a general rule of thumb you shoould always add around 10% to the purchase price to cover these costs. Included in this figure is your property transfer tax at 7%, plus your legal fees (usually 1%) and notary and registry fees.

Be Prepared

Prior to viewing any property make sure you've familiarised yourself with these basic guidelines.

Organise Your Funds

To reserve a Spanish property it's customary to place a holding deposit, which takes the property off the market and prevents you losing it to someone else. The usual amount is 6,000 Euros which can be paid by credit card or cash. Sterling cheques take up to 10 days to clear in which time your property could go to another buyer.

Use A Local English Speaking Lawyer

It is imperitive that you use a good English speaking lawyer with offices in Spain They will make sure the property you are buying meets all the necessary legal criteria.

(Information provided courtesy of Lawyers of Spain)