Call us now on 08717 20 20 10 [UK - Special Low Rate]
Callers from outside the UK: (0034) 952 587 541
Call us now on 08717 20 20 10 [UK - Special Low Rate]
Callers from outside the UK: (0034) 952 587 541
Choosing the Property
Serious thought may be required to first identify clearly
in your own mind the type of property you need and the area
where you would like to buy. Once armed with this information
you would well be advised to contact several agents in the
area of your choice to establish what is available and the
price you are likely to pay. You should also check property
magazines and newspapers to complete your overall picture
of the market.
Using an Agent
An agent can be very helpful to a buyer. He will provide
a wide selection of properties, and local information. He
may also help you to seek out the perfect property even
though he does not have it listed already. Care should be
taken in selecting an agent who will provide the experience
to answer all your questions and guide you through the negotiations
and sometimes complex procedures to the completion of your
purchase.
Agents do not normally make a charge to buyers and therefore
it makes sense for a buyer to use the very helpful services
of an agent. Agents fees are usually paid by the seller
as a percentage of the selling price.
Make an Offer
When you have decided on the property the first step is
to make a verbal offer either directly to the owner or though
your agent. Negotiations will then proceed until a price
is agreed when you should appoint a lawyer to formalize
the agreement.
Appoint a Lawyer
The lawyer , who should be fluent in your language, will
carry out the necessary checks on the property and complete
the legal requirements of the sale. The first check is normally
to obtain from the Property Registry a "Nota Simple"
which will identify the registered owner and provide details
of mortgages or embargos on the property.
You should obtain from the seller receipts for payment of
IBI (Impuestos sobre Bienes Inmuebles), the annual real
estate tax. These will show the "Valor Catastral"
the assessed value of the property on which your property
income tax will be based.
If you are buying a new property ask to see the "Declaración
de Obra Nueva" and the "Declaración de
Alteración de Bienes Naturaleza Urbana".
Where there is a community involved ask for receipts for
community charges and obtain minutes of meetings from the
president to identify any problems. A chat with the neighbours
would also be a good idea.
Holding Deposit
After the price is agreed and the "Nota Simple"
has been checked you may wish to pay a small holding deposit
to take the property off the market and reserve it until
you can make completion. Your lawyer will prepare a formal
offer and agreement for this purpose.
Exchange Private Contracts
The exchange of private contracts or the signing of an option
to buy would normally take place about two weeks after the
formal acceptance of an offer, when the lawyer would have
completed his searches. The contract would set out all the
agreed terms and state a date for completion. It is usual
for the buyer to pay a 10% deposit at this stage which is
non-refundable.
Complete at the Notary
On the assigned day buyer and seller (or their authorised
representatives) will attend the office of the notary to
sign the "Escritura de Compraventa" (the title
deed) which should state that the property is sold free
of charges, mortgages, and tenants. The notary does not
check the terms but solely certifies that the parties have
agreed them. At this point the balance of payment is made
and possession passes to the buyer.
Your lawyer will arrange payment of taxes and fees, and
register your title deed at the Property Registry. This
should be done promptly. Don't forget to have the property
insured.
The Costs
There are three fees to be paid Lawyers fees, Notary fees,
and Property Registry fees. Also there are two taxes, Transfer
Tax (ITP) and "Plus Valia"
LAWYERS FEES: usually about 1% of the purchase
price plus 16% IVA.
NOTARY FEES: fixed by law and normally
in the range of 300 e - 900 e.
REGISTRY FEES: approximately 40% of the
Notary fees.
TRANSFER TAX: 7% of the purchase price;
but when buying from a developer this is replaced by 7%
IVA plus 1% stamp duty.
PLUS VALIA: this is a local municipal tax and is based on
the officially assessed increase in the value of the land
since the last time the property changed hands. It can vary
considerably and you should find out the exact amount from
the town hall.
Who Pay´s What?
It is normal practice for the buyer to pay the above fees
and taxes with the possible exception of the "Plus
Valia", but everything is negotiable and should be
stipulated in the contracts.
The vendor will pay his own Capital Gains Tax and the estate
agents fees.