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LEGAL INFORMATION

Many people buy and sell in Spain in a legal and easy manner. To make the process as simple as possible for you, it is important that you use an independent lawyer to protect your interests. This is especially so in a foreign country where the law and the language is different.

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.

BUYING A RESALE PROPERTY

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. title deeds), there are no debts against the property (that you could become liable for), that the person(s) selling the property is the only owner, there is no illegal build on the property/land. 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 estate agents 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 10% minus any deposit paid) to the vendor. Both you and the vendor 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 vendor 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, vendor 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 house 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.

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 a 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.

By: Alcantara & Asociados, Professional Legal Services.
www.alcantara-legal.com 0034 952 52 7278.
This is a brief introduction and does not cover all aspects. For further information, contact a lawyer.
This information sheet was written in good faith and Alcantara & Asociados cannot be held responsible for any inconsistencies or errors contained within.