Terms of purchase for buying a Spanish property
When you buy apartments in Marbella, Marbella villas or any property for sale in Marbella, the process is the same and we recommended that you to read the following. It is advisable to seek the assistance of a lawyer as early as possible in the purchase process. legal advice to buy Spanish property. There are similarities in the way the property purchase is handled in Spain and in your home country but there are also areas with important differences.
When you have found your dream property in Marbella or in the Costa del Sol. The first thing to do is a reservation contract between the vendor and the buyer and put a reservation deposit on the property which normally is between 5.000 – 10.000 Euros. In about 8 - 10 days the private contract of the sale (Contrato Privado de Compraventa Privado) will be written and controlled by your lawyer. This private contract includes the conditions regarding the price of the property, the date for possession, the Nota simple control, the distribution and costs between buyer and vendor, the specifications of the property and any furniture and equipment included. Furthermore, the contract normally has some conditions concerning compensation to either the vendor or the buyer if the deal does not go through as a result of circumstances attributed to one of the parties. The vendor and the buyer will sign and a deposit of approximately 10 % of the purchase price is paid, including the reservation deposit.
The deed of conveyance.
The private contract is an important document since it creates the basis for the subsequent drafting of the deed of conveyance (Escritura Pública de Compraventa) which is your ownership document. The deed of conveyance for a Spanish property is drafted by your lawyer and signed by both parties before a Notary. If you cannot be present at the signing of the deed of conveyance you can issue a power of attorney to a representative (your lawyer).
Final payment of a Spanish property.
The signing day of the deed of conveyance the buyer will pay the rest of the purchase money to the vendor, who hands over the keys and the documents of the property to the buyer. Normally it will be possible to finance part of the purchase price. For more details please refer to the section Finance / mortgage for a Spanish property
Protecting the rights of the buyer.
Your lawyer will explain to you the legal rights when you buy a Spanish Property, at the time of purchase it is important to obtain advice about technical as well as legal matters prior to make the private contract.
The costs related to purchase of a Spanish property is:
For a re-sale 7 % transfer tax of the price on the Escritura Pública de Compraventa stated in the deed of conveyance.
For a new construction 7 % V.A.T (I.V.A).
The buyer also pays the fees to the Land Registry, Notary and lawyer. The lawyer cost approximately 1 % of the purchase price. The total cost related to the purchase is 9-10 % of the price stated in the deed of conveyance.
How much does legal advice cost?
The lawyer’s fee may vary depending on the time needed for the specific purchase. As a rule the costs is approximately 1 % of the purchase price for a properties in Marbella. For more expensive and luxury Marbella apartment or a Marbella property the cost of the lawyer could be less than 1% of the purchase price.
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