Steps to Buy a Property in Spain

Steps to Buy a Property in Spain

Sticky
Oct 20, 2015
Comments Off on Steps to Buy a Property in Spain

Steps to Buy a Property in Spain

Nueva Andalucia Marbella Tips

Our highly qualified consultants are given to help our clients to take the right decisions when the buying process is in place. The Newbery Group will make your feel comfortable doing the purchase of your house guarantying you the security and aware of the steps you will take.

Step #1

First of all, it is important to make a detailed search of the home that you desire from the hand of our specialized assessors. This step will allow the assessors to get in touch with the owner or people in charge of the Real Estate and get all details about.

Step #2

After you have selected the property Newbery Group draws up a “Reservation Contract” in order to store it up and assure the customer that the buying process will be safe and reserved just for you. This type of contract is made in Spain in order to let the lawyers make their job appropriately.

What is the “Reservation Contract”?

The reservation contract is a temporary reservation document which contains the basic items and conditions of the purchase including the important legal aspects between the seller and the buyer guiding them to sign in order to seal the formal agreement. Some aspects included inside are:

  • Total Price of the property

 

  • Full name of the signatories (Buyer and Seller)

 

  • Property address

 

  • The date to sign the contract

 

  • Some Other special conditions (subject to finance)

 

  • Deposit amount to reserve the property.

 

The buyer of the property may deposit “6000” Euros to secure the process whilst the paperwork is being done. This amount of money is a guarantee of the service and gives you the chance to acquire a mortgage during this time giving you an extra support. The payment can be through credit card, cash or a bank transference and it can be held in the Newbery Group account. It is important to say this deposit is completely refundable in case that your lawyer discover any legal impediment in the buying process paperwork. In case the purchase continue without any inconvenient those 6000 euros will be used in the payment of the purchase price, so you will not lose anything.

Step #3

When all the process has advanced making a strict revision from both parts, you lawyer will inform you about all process and if the private purchase proceeds or if it is applicable.

In this case, the purchase contract is a private contract between the buyer and the vendor in order to establish and set out all the conditions of the contract. Our purchase contract usually contain the following terms:


The first term
is a legal declaration from the vendor that he is authorized to sell the property respectively. In second hand, the exact address and dimensions of the property and its features as set out in the “Cadastral Reference” as in government registration of the property.Besides, the completion date and hand over of the keys. In addition, the agreed terms and conditions established in the purchase.

In Spain the buying costs can vary from 10 % to 13.5% depending of the purchase price, it is developed in the following way:

  • 10% VAT (IVA) on new properties, 8% to 10% VAT (IVA) on re-sales depending on price category
  • 1% Notarization of property cost. (Notary Fee)
  • 1% Legal fees (a fee charged by your selected lawyer to conduct the Process and Paperwork)
  • 5% Stamp Duty Tax (A tax charged to make all documents legally effective)
  • In case you require a mortgage loan, you should calculate an average of 1- 1.5% cost for the set-up fee of a mortgage with one of our banks.

If you want more information we are totally pleased to attend you, contact us and receive all the necessary extra information about. Nueva Andalucia Marbella your Qualified Real Estate.