Buyers Guide
THE BUYING PROCESS - FOUR EASY STEPS
STEP 1- RESERVATION DEPOSIT:
Once you have chosen your new home,the first step is to lodge a deposit (usually €3000 to €6000) and sign a reservation document. This will take the property of the market.
STEP 2-PRIVATE CONTRACT:
The next step is the signing of the Private Purchase Contract.As a general rule this will take place 2 to 4 weeks after deposit date. For resale property a payment of 10% of the total sale price is required, payable at the signing of the contract.
For new developments this percentage may vary from 20% to 40%
STEP 3-INSTALLMENTS:
For off plan property purchases,some developers may require "during construction payments".
Payment schedules vary per development. For second hand propery usually no term payments are required.
STEP 4-TITLE DEED:
The final step is the signing of the Title Deed at the notary's office and the simultaneous payment of the balance to the vendor after which you will receive the keys.
YOU ARE NOW THE LEGAL OWNER OF YOUR NEW HOME IN SPAIN.
IMPORTANT NOTICES:
- COSTS: As a rule allow approximately 10% of the purchase price for costs/expenses.
Property Transfer Tax ( or V.A.T. in case of a new property) 7%
Lawyers fees, notary fees, stamp duty etc. approx. 3% - Lawyer: The notary is a public official who is only there to record the fact that the Title Deed has been signed in his presence and understood by the parties concerned. It is therefore strongly advised to use a lawyer for any property transaction you may undertake.Your lawyer will guide you through all legal procedures.
- Mortgage: As a citizen of the European Union mortgages on a second home are readily available by Spanish banks. The rates and conditions are quite favorable.
