Buying a property in Spain can be both a good investment and a way of feeling at home whenever you go to Spain. 

But one must be aware that the Spanish legal system is very different indeed from that of the UK, and to avoid misunderstandings, disappointments and possible frauds it is essential to seek expert legal advice from the very beginning.

Bellow, we have set out the main stages involved in the purchase of a property in Spain. This is only a guideline to help you understand the conveyancing procedure and it will vary depending on the particular circumstances of each transaction.

1. ADVISING YOU ALL THROUGH THE PURCHASE PROCESS

ADVISING YOU ALL THROUGH THE PURCHASE PROCESSAND ABOUT THE EXPENSES THAT ARE LIKELY TO BE, both during the conveyancing procedure and after, for the ordinary maintenance and running of the property. Buying certain types of property can seem very attractive but you should be aware of their running costs and whether they suit your needs. We will also advise you about the main taxes involved when buying the property.

2.  CHECKING ON THE MONIES AVAILABLE:

Before you are bound to the purchase, check that you have the deposit money and other monies payable at different stages of the conveyance. We can inform you about different entities that may be able to partly finance your purchase with a mortgage.

3. OBTAINING INFORMATION FROM THE SELLERS:

Once you have the necessary funds and have decided which property to buy, we will obtain from the sellers all the legally relevant information and check that they have a good legal title on the property.

4. SEARCHING IN THE LAND REGISTRY:

It is most important to make a search in the land registry with the main object of discovering whether there any third party interests of which the buyer is not aware.

5. PLANNING

Checking all the planning matters, permisions projects that are likely to affect the value of the property in the future.

6. DRAFT A CONTRACT

Draft a suitable contract according to the particular circumstances and make provisions as to any deposit already paid or payable on the signing of the contract. A completion date will also have to be included and other very important provisions that will vary depending on a number of circumstances. Also it is important to know in advance whether the purchasers will appear personally before the Notary or will be appointing an Attorney.

In some cases, the inclusion of provisions about the payment of certain taxes involved in the transfer of the property are essential.

7. MORTGAGE:

We can deal with any legal matters related with a mortgage that you may wish to obtain to part finance the purchase.

8. SIGNING OF THE CONTRACT:

The contract will be signed once each party is ready to commit themselves to what has been set out in the contract.

9. PAYMENT AND COMPLETION:

Get the purchase price ready and make the last checks before completion (ie. The signing of the title deed – “Escritura Pública de Compraventa” – before the Notary). The purchase money will have to be paid before or on the signing of the “Escritura”. At this point, Notary's fees will also have to be paid.

10. TAXES, REGISTRATION AND PAYMENT OF FEES:

The title deed should be taken to the appropriate District Land Registry as soon as possible. Prior to getting the title registered, the deed must be produced to the Tax Authority in order to pay taxes on the transaction, otherwise the title will not be allowed into the Registry. At this point, Registry's and lawyer's fees will also have to be paid.

Once the title deed is back from the Registry bearing the stamps, the Registry protects your title against any third party.

11. REGULAR PAYMENT OF RATES AND TAXES:

The local authorities will be levying taxes on your property. Also, other central government tax will have to be paid annually. Although usually they are not very high, it is most important that you know of them and do not forget to pay them on time. The authorities will not send you a reminder of payment, and if you fail to pay your property could be auctioned to raise the money for the taxes. Of course, we can assist on the regular payment of your taxes.

12. REGULAR PAYMENT OF BILLS:

The bills for the supply of water, electricity, etc, will have to be paid regularly, and if you have bought and apartment or a house in a private development, you will also have to pay maintenance charges.

The article was provided by EMBASSY LEGAL & TAX lawyers in 29649 Mijas Costa. Málaga. España, Tel: + 34 952 93 46 31

@ 2007 EMBASSY LEGAL & TAX. It is illegal to copy or published other than with specific written permission of EMBASSY LEGAL & TAX

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