A Step by Step Guide to Buying a Spanish Property
You need to consider two options when thinking about buying a property on the Costa del Sol. You could either buy a new property from a construction company or instead opt for a resale property owned by a private individual. The fundamental difference is that in the first instance you will be buying a property from a company whereas if you purchase a resale property, you will be dealing with a private owner/s. Needless to say, the purchase process will vary depending on the type of property you decide to buy. Either way, we always recommend that you hire a reputable lawyer to handle all the relevant due diligence practices to ensure there are no unpleasant surprises.
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Here is our step-by-step guide to buying a Spanish property:
A. Buying a home in a new development.
Checking a Resale Property
Once you have paid the deposit to the lawyer, they will start the due diligence process. Your lawyer will:
- Check the legal status of the property.
- Ensure that the property is free of debts and charges.
- Ensure that all utility bill payments are up to date.
- Check the usage status of the property.
- Ensure there is sufficient planning permission in place if you wish to extend or modify the property.
You need to be aware that, if that the lawyer does not find any legal issues with the property, you will lose your deposit should you wish to withdraw the offer at this stage.
Signing a Private Purchase Contract when Buying a Resale Property
When all the relevant checks have been done, it is time to sign the preliminary contract (contrato privado de compraventa). You will also be requested to make the first down payment. This usually amounts to 10% of the sale price and from now on, the contract is legally binding for both parties and any amounts paid are non-refundable. The contract will state all the terms and conditions of the sale as well as determine the completion date.
Contact us at Nor Estates to buy a resale property on the Costa del Sol
Taxes and Fees When Buying a Resale Property on the Costa del Sol
The buyer primarily pays costs and these usually range between 8% and 14% of the value of the property.
- Property transfer tax 5% – 10%
- Notary fees, title deed tax and land registration fee 12.5%
- Legal fees 1% + VAT
- The estate agent’s fees are paid by the seller