Investing in a property in Spain can be both exciting and worrisome. Stories about the land grab law, properties being demolished has discouraged a lot of prospective buyers. But this can all be avoided if you are equipped with the one thing necessary for buying real estate in Spain or in any other country for that matter-information.
This includes knowing as much as you can about the country, its laws, its property buying process and the professionals that can assist you in making your purchase official.
To be able to safely purchase realty in Spain, you must enlist the services of several reputable people specifically, the notary and abogado.
The notary is responsible for drawing up the property deeds and makes sure that it is understood by all parties concerned. He also acts as the witness when the deed is signed by both the buyer and the seller. He ensures that all relevant taxes are paid.
The abogado makes sure the property is legal, does the necessary background checks. Do not rely on the builders and estate agents to refer you to their abogados. Do the necessary research and if possible, ask the expats in the area to recommend someone you can trust.
A good abogado ensures that the property is actually owned by the seller as evidenced by their names on the deeds, that there are no pending mortgages or balances on the estate, that there are no tenants currently residing on the land. He also checks that the dimensions of the land as stated on the deed match with the property, that the paperwork is complete, and that any extensions to the property or swimming pools have been cleared with the local government.
He reviews the documento de reserve or reservation contract, as well as the purchase contract or contrato privado de compraventa and approves it prior to you making a non-refundable deposit. To avoid any possible untoward incidents, it would be best to deposit the money into an escrow account so that the money is not released until the transaction is complete.
The final contract or deed called the escritura de compraventa is prepared. The deed is then read by the notary and this will be signed by the seller and the buyer in the presence of the witnesses, including the notary at his office. The balance of the purchase price is then paid through a banker's draft or bank transfer which then triggers the transfer of the property to the buyers name. The notary takes care of the transfer of ownership by registering the deed at the Registro de la Propiedad. Immediately after, or at an appointed date, you will need to settle the notary, property registry fees, transfer and Plus Valia tax. Conventionally, the notary fees and Plus Valia tax is shouldered by the seller. The registry fee and transfer tax is charged to the buyer. This arrangement can still be negotiated on depending on the terms agreed by both parties. It is always safe to allocate 10% of the property cost to cover the fees and taxes.
With the right people behind you, acquiring that coveted property need not be a stressful experience.
This includes knowing as much as you can about the country, its laws, its property buying process and the professionals that can assist you in making your purchase official.
To be able to safely purchase realty in Spain, you must enlist the services of several reputable people specifically, the notary and abogado.
The notary is responsible for drawing up the property deeds and makes sure that it is understood by all parties concerned. He also acts as the witness when the deed is signed by both the buyer and the seller. He ensures that all relevant taxes are paid.
The abogado makes sure the property is legal, does the necessary background checks. Do not rely on the builders and estate agents to refer you to their abogados. Do the necessary research and if possible, ask the expats in the area to recommend someone you can trust.
A good abogado ensures that the property is actually owned by the seller as evidenced by their names on the deeds, that there are no pending mortgages or balances on the estate, that there are no tenants currently residing on the land. He also checks that the dimensions of the land as stated on the deed match with the property, that the paperwork is complete, and that any extensions to the property or swimming pools have been cleared with the local government.
He reviews the documento de reserve or reservation contract, as well as the purchase contract or contrato privado de compraventa and approves it prior to you making a non-refundable deposit. To avoid any possible untoward incidents, it would be best to deposit the money into an escrow account so that the money is not released until the transaction is complete.
The final contract or deed called the escritura de compraventa is prepared. The deed is then read by the notary and this will be signed by the seller and the buyer in the presence of the witnesses, including the notary at his office. The balance of the purchase price is then paid through a banker's draft or bank transfer which then triggers the transfer of the property to the buyers name. The notary takes care of the transfer of ownership by registering the deed at the Registro de la Propiedad. Immediately after, or at an appointed date, you will need to settle the notary, property registry fees, transfer and Plus Valia tax. Conventionally, the notary fees and Plus Valia tax is shouldered by the seller. The registry fee and transfer tax is charged to the buyer. This arrangement can still be negotiated on depending on the terms agreed by both parties. It is always safe to allocate 10% of the property cost to cover the fees and taxes.
With the right people behind you, acquiring that coveted property need not be a stressful experience.
About the Author:
Focusing recent findings in property for sale in benidorm, Andreas Sosadi works almost entirely for http://www.alicante-spain.com . On his site you might come across his comments on benidorm apartments to buy and benidorm properties.
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