Purchasing a Property in Spain – The Buying Process
Are you looking to buy a villa or apartment in Spain? The Spanish regulations when purchasing a property may be vary different to the regulations that are held in place in your home country. For example, After signing a contract of sale for a house, you are not automatically the owner of the home. The following steps describe the buying process and everything around it.
- Check that the plot is “debt free’. In Spain, the land often serves as collateral for mortgages and loans, the owner of the land is in turn also owner of what is constructed on the land. So if you are to make a transaction, be sure that the ground is free of mortgages or debts.
- Demand for the title deed (escritura) of the owner. This will show whether or not the land is free from debt.
- Allow data from the ‘escritura; to be examined by a legal advisor in the ‘ catastrophes’ and ‘registro de propiedad’.
- Ask for copies of the electricity, water, and phone bills from the seller.
- Make arrangements with the seller about the payment of local and ongoing taxes
- Negotiate the final price of the house
- When there is an agreement on the price, you need to sign a reservation contract
- Usually, a purchase contract (contrato privado) will be signed within three weeks after which 10% of the purchase price is paid.
- A deed of ownership will be drawn up by a notary (escritura).
- After everything has been paid you will receive a duplicate of this escritura from the notary. This is proof that you are the new owner of the property.
- The original version of the escritura is sent to the register ( registro de propiedad). Your name will be registered in the land registry deed.
- Only when this original escritura has been registered with the registro de propiedad, are you the rightful owner of the property.
- In addition to this, it is required that you register at the ‘catastrophe’ part of the ministry of Finance. This is mandatory for levying of property taxes