Premier´s Step by Step Guide to buying your home in Spain
Once you have chosen your ideal property, Premier Villas will help you negotiate an agreed purchase price, thereafter you need to reserve the property with a reservation deposit to take the property off the market and to secure the price for both the buyer and vendor.
The amount of the reservation deposit depends on the price of the property but is either €3000 or €5000. This money will not be handed over to the vendor until all the legal searches are confirmed.
Once the reservation deposit is paid, your solicitor will then start the legal searches on the property. We strongly advise employing the services of a registered solicitor, local to the area in which you are purchasing. This means they will be familiar with all the local town hall regulations and will be able to advise you accordingly. It is very important when you are buying in Spain to use a solicitor, rather than a Gestor. They will guide you through the entire procedure safely and are protected with professional indemnity insurance.
Once all the searches are completed to your solicitors' satisfaction, a legally binding private purchase contract is drawn up, which both parties sign. Once this has been signed the reservation deposit is made up to 10% of the agreed purchase price. This is then given to the vendor. It is at this stage the date for the notary is made. The buyer and vendor choose the date between them, it can be straight away or a delayed date. The notary date is firm but moveable by mutual consent; if the buyer does not turn up for the notary date, he will lose his 10%, if the vendor does not turn up then he must pay back the 10% plus a further 10%. A daily fine is charged until the monies are paid.
Notary. On the day of the notary, your solicitor will either accompany you or represent you if a POA has been arranged. The notary serves as a legal confirmation of the transfer of property ownership from the vendor to the buyer and will ensure that all necessary documents are in order and that the property is being sold in compliance with all relevant regulations and laws. During the notary, the vendor and buyer will sign the purchase. Once the contract has been signed and the remaining 90% of the property purchase price paid, the property is yours. You will need to take your passport on the day of completion; the solicitor will have all your other paperwork.
Please, remember to add approximately 12.5% of the purchase price for buying costs.
To purchase a property in Spain, you will need an NIE number. The NIE is a personal, unique, and exclusive number that is assigned to foreigners who, for economic, professional, or social reasons, are engaged in activities related to Spain and require identification in this country. There are several ways of obtaining the NIE number: arranging an appointment at a specific police station, asking your legal representative to help you obtain the number or alternatively, you can use the Spanish embassy or a regional consulate, in your own country.
This information is not intended to be the only guidance to follow when considering purchasing a property. Premier Villas always recommends that prospective purchasers seek local independent legal and financial advice at all stages in Spain.