Are you thinking of buying a property in Spain?
We are often asked by potential buyers, the process of Buying a property in Spain, so below please find the information regarding the information required.
Buying a property can be a daunting process, so these guidelines will make it clearer and bring awareness of what is required.
ATLANTIS PMR collaborate with a number of Lawyers who are multi lingual. If you do not have a Lawyer, we will provide a reputable Lawyer who will be assigned to your purchase.
1.Paying a Holding Deposit
Once you have selected the property that you want to buy, you are required to pout down a holding deposit. This ensures that the property is withdrawn from the sales market and you have made a reservation for the property. A payment of 3000 euros is the minimum for properties in the lower end market and 6000 euros for the properties in the medium to higher end markets. This is usually held by the Real Estate Agent that is selling the property.On some occaisions this can be held by the lawyer of the Vendor of the property. The reservation is held until the Private Purchase contract is drawn up between the 2 lawyers ( one representing the buyer and the other representing the Vendor.) Normally from the time the reservation has been put down there is a minimum 10 day period , this can vary depending on the reservation contract agreed, In this time the lawyers can make sure all the necessary paperwork is in order for the sale of the property to commence. If the buyer needs a Mortgage the reservation contract will state a period until which time they are required to arrange finance. If finance is not granted, they will not lose their deposit.
2. Private Purchase Contract
It is common practice for the buyer and the seller to confirm all the details of the purchase in a Private Purchase Contract, with the buyer putting down a NON REFUNDABLE deposit of 10% of the purchase price. The Private Purchase contract will identify the property buyer and the seller.It should state that the property is sold free of all charges loans and mortgages as well as defining a date by which time both parties must complete the sale. Before signing the Lawyer should make sure that there are no back taxes owed on the property and that it has the correct registrations, Energy Efficiancy certificates as well as an up to date community certificate..
3. Public Contract
The Notary. This is the final stage of the purchase of the property. Both parties must attend the Notary ( or give power of Attorney to the lawyer acting on behalf of you)This must be on or before the date stipulated in the Private purchase contract, at which time the balance of the purchase price is paid and a new title deed is prepared and signed by the Notary. Mortgages will require a separate deed and outstanding mortgages must also be cancelled at this point. Once the deeds are signed they will then be submitted to the land registery for registation.
Power of Attorney
If you are unable to be in Spain for the purchase of your property, a general Power of Attorney is frequently used as a legal representative in Spain. The document lists the actions that can be carried out by the legal representative on your behalf including the buying and selling of a property.This can be drawn up by the Notary for paper work stating that the legal representative has Power of Attorney to act on your behalf. The document that is required to enable this proces is the NIE number as well as the passport /ID .
NIE number
It is complusory for anyone buying a property in Span to have an NIE number ( NUMERO DE IDENTIDAD DE EXTANJEROS) which translates to IDENTITY NUMBER FOR FOREIGNERS. This can be easily obtained by your Lawyer or often the Real Estate Agent who has sold you the Property may also be available to accompany you to the Police Station to obtain this unless you have instructed Power of Attorney to your Lawyer.
Money Laundering Law
Now there are new Regulations when buying a Property in Spain. To avoid Money Laundering, the buyer must display proof of funds but supplying proof of income and an energy bill from the country from which they reside as well as their current address in their place of Residence, Copy of their passport,and contact information. This information will be collected by the Agent who is representing the client. All payments including the 3000 euros reservation must be made by direct Bank transfer and no cash payments.The minimum legal tender that is allowed in the Notary is 2000 euros.
If you have any questions regarding this or you are interested in purcasing a property, please contact our sales department sales@atlantispmr.com
