LEGAL INFORMATION

The best advise is that it is safest to ensure your lawyer checks all contracts before you sign and that all payments are made through your lawyer.

An off-plan property is a brand new property, often available to buy before it is finished.  The advantage is that you can pay a lot less than you would if it was finished.  Some people buy off plan so that they can sell the property before completion to try to make a profit. A disadvantage for some buyers is that you pay for a property that you cannot see (except in plans) and won't be ready for some time.

The Essentials

• Ex-pats can look into borrowing money from their home country and Spain.  Many Spanish banks offer mortgages up to 80% for non-residents and you will need to provide proof of regular and ongoing income.

• Find a lawyer that is fluent in Spanish and your language and will represent your needs.  A lawyer's services are crucial to protect your interests and explain Spanish law to you. It is safest to ensure your lawyer checks all contracts before you sign and that all payments are made via your lawyer.  To be legal in Spain, documents must be in Spanish.

Legal Checks

Once you have found a property, your lawyer will make a number of checks before advising  that you can buy the property in a legal manner.  There are many checks including that there is comprehensive up to date property paperwork (e.g. nota simple), the developer's paper work is in order (e.g. the developer has a valid building license for the property), the property is legally registered.  These checks are crucial to ensure that you can buy in a legal manner and that you will not have problems with the property in the future.

Payment

Many developers ask you to pay a deposit to take the property off the market whilst your lawyer checks the paperwork.  Once your lawyer has checked all the paperwork and confirmed you can buy, you normally pay an agreed amount (around 30% minus any deposit paid) to the property developer. Both you and the developer sign a legally binding contract which your lawyer should check protects your interests, lists what more needs to be done before completion and the completion date.  If after this, you cannot complete, you will lose the money.  If the developer cannot complete, s/he will have to return to you double the amount paid.

Legal Services

Your lawyer will also:

• Provide you with a budget of all your expenses.
• Help you to apply for an NIE number (foreigner ID), which is necessary to purchase property.
• Arrange Power of Attorney if you won't be in Spain and need your lawyer to complete the purchase on your behalf.
• Liase with your mortgage lender, bank, property developer and estate agent.

Completion

You complete the property purchase at the Notary together with the vendor and your lawyer.  You pay the balance, both parties sign the Escritura and you get your property keys!

Once the Escritura is signed at the Notary, it is sent to the Tax Office and the Land Registry. It usually takes around 2-3 months for the final deeds that state you are the owner of the property to be ready. Your lawyer will let you know.

According to the building licence, your off plan property should have a number of guarantees against construction defects.  If you have already bought an off plan property that has construction defects, talk to a lawyer about the guarantees.

After the purchase, your lawyer will be able to change over the utilities into your name and draw up a Spanish Will for your Spanish assets.

Costs

The taxes and costs of buying an off plan property in Spain will be around 10-12% of the full property price.  They can be higher if you are getting a mortgage in Spain.  Costs include legal fees, taxes, notary fees and land registry fees.