Ultimate Property Buying Guide in Spain
Deciding to buy a property in Spain is a life-changing and thrilling decision. While the process may have some unique aspects compared to other countries, it’s straightforward once you familiarize yourself with the steps. In this comprehensive buying guide, we’ll walk you through the process, offering valuable insights and tips to ensure a smooth and successful property purchase in Spain.
1. Financial Preparation: Before diving into your property search, it’s crucial to assess your finances and set a budget. Determine how you will finance your property purchase, whether through personal savings, a mortgage, or a combination of both. Having a clear financial plan will guide your property search and help you avoid exceeding your budget.
2. Engage a Knowledgeable Sales Agent: One of the first steps in your property search is to connect with a reputable sales agent who specializes in the Spanish real estate market. Share your specific criteria and preferences with your agent to help them understand your needs and desires. Your agent will then provide you with a curated selection of properties that align with your requirements.
3. Property Viewings: Accompany your sales agent on property viewings to gain firsthand insights into potential homes. This step allows you to evaluate the properties, their surroundings, and amenities. Your agent will guide you through the process, answering questions and providing valuable information about each property.
4. Legal Representation: Hiring a trusted legal representative is a crucial step in the property buying process. Your legal representative will assist you with obtaining a Spanish registration number and setting up a power of attorney, which is essential for various legal and administrative procedures.
5. Making an Offer: Once you’ve found your dream property, it’s time to make an offer. In Spain, offers are typically made below the asking price, which may differ from the practice in some other countries. Your agent will help you prepare and submit your offer to the seller or their representative.
6. Reservation Contract: When your offer is accepted, you will reserve the property by signing a reservation contract. This step typically involves paying a reservation fee, which typically ranges from €6,000 to €10,000. The reservation fee is transferred to your lawyer’s client account, safeguarding your investment. Simultaneously, your legal representative will initiate due diligence to ensure the property’s legality and compliance with your requirements.
7. Purchase Contract: If the property passes the due diligence phase, you’ll proceed to sign the purchase contract. This usually occurs within 14 days of the reservation contract signing. Upon signing, 10% of the property’s agreed-upon price (excluding the reservation fee) is transferred to your lawyer’s client account. Your lawyer will confirm this transfer to the seller. The purchase contract will specify the agreed-upon date of access to the property.
8. Completion of Purchase / Access: On the day of access, all parties, including the buyer, seller, and legal representatives, will convene at the notary’s office to complete the purchase. During this meeting, any existing mortgages on the property will be cleared, and the property’s title deed will be updated. The remaining 90% of the property’s purchase price, in addition to the initial 10% held in the lawyer’s client account, will be transferred to the seller at the notary’s office. The keys to your new property will be handed over to you, marking the successful completion of the purchase.
Congratulations, you’re now a proud homeowner in Spain! This guide is intended to provide you with a general overview of the property buying process in Spain. It’s essential to consult with your legal representative and real estate agent for personalized advice and guidance throughout your property acquisition journey.