Conveyancing and solicitors in Spain
It is not uncommon for people not to take advice when they buy and then run in to
problems further down the road.
It is therefore a sound risk removing step to use a good lawyer, and not try to save
money by cutting one out of your process of acquisition.
There should be no difference in your mind between buying a property in Spain or
one in the UK. They are paid to do a professional job in protecting you. That is why
you are paying them.
A good firm of lawyers will fully explain the who9le process to your satisfaction.
They will also point out the man differences between buying in Spain and buying I
the UK
The Purchase Process
When you have a property lined up to buy, do try and follow these steps:
1. Choose and estate agent
2. Choose a lawyer to perform the transaction
Your estate agent
Your agent can short list properties that suit your criterion including price and quality.
Be sure to obtain the yearly maintenance known as the IBI (The annual Real Estate
tax), community costs, refuse collection, water rates, electricity charges, the Property
Income tax.
You will need to make a deposit to reserve the property which stops the property
being sold to an other person.
This then allows you up to 15 days to exchange contracts and finalise the deal.
Legal suggestions (for guidance only)
From the point of deposit to the completion, your lawyer handles the transaction.
He will normally check to make sure that all legal requirements are met, that the
property is correctly registered in the seller’s name, and is free of any charges
including mortgages and any other liabilities.
He will then negotiate terms directly with the other party’s lawyer including the
amount, entry date etc.
Normally you would pay 10% of the total price on the exchange of contracts.
This will not be refunded to you if you should then drop out of the deal.
The same applies to the seller.
If they drop out you are entitles to claim damages.
On the completion date, your lawyer will go to the Notary Public to sign the title deed and make the final payment to the seller who will, at the same time, pass possession to you along with the keys to the property.
The sale is now completed and the notary faxes details of the title deeds to the local land registry to give them full details of you, the new owner.
So the notary and the Land registry work together to protect you.
You then pay the taxes and have the original title deed passed to the Land Registry so they can register your title.
Your could also have your lawyer transfer your details to the utility companies and
arrange payment through your local bank
Your purchase of your property will incur the following costs:
Fees
The notary who charges on a fixed scale
Land registry 40% of the notary charge
Taxes
For Previously built property there is an ITP transfer Tax of 7%
For New property VAT (IVA) of 7%
Plus stamp duty of 1%
The IVA will rise to 16% if you are buying a plot of land, or commercial premises.
Plusvalia is a local town council charge and may range from a few hundred euros to
several thousand euros for larger houses on a large plot of land.
Under the law the seller should be paying this tax but it is usual for the buyer and
seller to negotiate who will pay.
Lawyers in Spain usually charge 1% -2% of the house price plus Vat of 16%
All the information given here is a guide only and may have changed by the time you read this.
You must take proper and up to date advice from your solicitor.
