ARE YOU THINKING ABOUT ACQUIRING REAL ESTATE?

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At Villa Padierna Collection we take care of the whole process and we guarantee you get access to the best professionals to make sure the purchase is a success. If you have any questions before you start, get in touch with our team who can advise you using the extensive experience we have in the field. Meanwhile, this guide will help you find out what it is like to buy property in Spain.

CHOOSE A TRUSTWORTHY REAL ESTATE AGENCY

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Buying property is a complex matter that can be simplified if you have the right advice. A good professional, with experience, extensive knowledge of the market and the area and a solid reputation could help you find the house of your dreams. If there is something that distinguishes a good professional from a bad one, it is the capacity to respond. They will know exactly how to identify your needs and find the property that suits you the best, even if it isn’t in their own portfolio, they have the best contacts to get it.

COUNT ON THE BEST PROFESSIONALS IN EACH AREA

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Even though the real estate consultant has an essential role in the house hunting process, once the right property has been found and the purchasing negotiations have to start you have to rely on the knowledge and the experience of a good lawyer and tax advisor. The Villa Padierna Collection team has the best partners in each area, which means it can recommend the most qualified professional for each moment.

PREPARE ALL THE DOCUMENTATION

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With regard to some foreign buyers, having a NIE (Foreigner’s Identity Number) and a Spanish bank account will be very important and it will speed up the process.

BE WELL AWARE OF THE PURCHASE TERMS

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The total official cost associated with buying residential property stands for about 10-11% of the sale price for second hand properties, or about 6% for new properties if the VAT is paid, plus the lawyer’s fees.

NEGOTIATION

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First step, choose the best agent. The advice of an expert is essential to be successful in the first stage of the purchase process: the negotiation. Knowledge of the market is a fundamental value when it comes to making the right offer. If the offer is too low, it could negatively affect the result and end up causing a rift between the buyer and the seller.

The offer made must be clear and very specific; it must include all the relevant points and be interesting so that the seller can make a quick decision. Complex offers or negotiations when small amounts of information are supplied delay the agreement and frustrate both parties. The offer must include the suggested price, the amount that will be paid as a down payment and it must be established if it is going to be paid all at once or in various instalments.

In this sense, both parties must agree on what is included in the price: whether the property will be furnished or not, whether it will come with electrical appliances and whether they work properly, along with other points to consider… The dates when the down payment instalments will be paid and the date that the sale will be completed must be specified. As well as having advice from an estate agent, in some negotiations a lawyer is also recommendable. Lawyers can check the conditions of the offer and guarantee that all the legal criteria are being complied with.

SIGNING THE CONTRACT

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In Spain the entity that takes care of the purchase and sale of property is the Land Registry. It is in charge of providing legal information about the property, for example, if it is free of encumbrances and if there is any outstanding debt on it. When it comes to drawing up the contract, if the total price of the property is not paid at the beginning, a contract of sale is usually drawn up that governs its conditions between the two parties. This includes the details of the transaction, the details about the property, the registration number, the sale price, the payment methods, the key dates in the process and any other information that the parties consider should be put down in writing.

THE PAYMENT OF THE PROPERTY

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A down payment for the amount that will be agreed upon between the parties will be paid when this agreement is signed, which will depend on the purchase conditions and the dates agreed upon. In general, the down payment is about 10% of the total sale price if the date to complete the transaction is between 30 and 60 days. Once the total sale price has been paid, the seller will draw up the deed of sale in favour of the buyer, for the property that is free of encumbrances and debts, which must be signed before the notary and temporarily registered in the Land Registry.

• If it is a resale or a second hand property, it will be sent to the Spanish Tax Agency so that the corresponding transfer tax can be paid.
• If it is bought directly from the property developer, it will also be sent to the Spanish Tax Agency so that the corresponding stamp duty can be paid.

In both cases, the next step is to register the purchase in the Land Registry. Brand new property is governed by the Law 38/1999, on the Building Regulations (LOE). It establishes that the properties must be paid for while they are under construction and all the payments that are made before the completion of the building project must be backed by a bank or an insurer.

If the property is still under construction and has not been finished on the agreed date, the buyer is entitled to claim the money that they have already paid plus the legal interest that is applied in each case. As for the property developer, it is legally obliged to take out a 10 year insurance policy to cover any building defects, which the buyer can benefit from if there are any.