UND-Pilsa Blog

So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete the purchase

It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. Make sure that the Spanish property is free of restrictive clauses and debts.

There are two different categories when it comes to the legal process of purchasing Spanish property. First you have the preliminary contract, or Contrato privado de compraventa, and then you have the completion contract, or Escritura de compraventa.

Once the buyer and seller are in agreement on the price then they need to sign a preliminary sales contract. The vendor must provide proof that he or she owns the property free of any charges before this Contrato privado de compraventa has been signed. In Spain, debts are attached to the property, so any mortgage that was outstanding would transfer to the buyer. Nota Simple documents were developed to validate if a property has an outstanding debts.

Details to be included in the draft sales contract will include the date of closure, agreed upon purchase price and a detailed accounting of the property being purchased. Expect to pay a deposit that ranges between 5 and 15 percent of the purchase price. This money shall be held in escrow for your benefit. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.

Escritura de compraventa is otherwise known as the second or final contract stage. The purchaser will be required to pay the balance of the purchase price and all fees on the date of completion. The buyer and seller will meet to finalize the deal with a contract, which is the same as a deed on the property. Also known in Spain as the escritura, the purchaser will received this deed which is usually in front of a Notary Public. A copy of this deed will also be passed to the tax office and to the property registry as well to make everything legal. If you are in Spain, a Notary Public will be required as a witness on you deed of sale. Don’t just rely in that, though. You will want to have your own lawyer to keep your best interests foremost throughout the proceeeding. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.