Property Purchase
lawyers in spain

Our firm provides the following services:

Once the client has decided to buy a property

  1. Property approval report issued by an architect-surveyor (optional) : to ensure that the property they are buying has hidden defects or construction flaws. We recommend our clients to commission this report to avoid future problems.
  2. Negotiating the Purchase: some negotiations not only involve the property price, as in the bargaining stage other issues could form part of the negotiations such as completion dates, methods of payment, fixtures, fittings or determining who will pay the taxes resulting from the property transaction (Plus Valia)
  3. Land Registry check: we research the legal situation of the property in the Land Registry, in order to verify if it is encumbered or if there are any limitations to the property or difficulties attached to its purchase.
  4. Reservation Contract and Deposit: our firm drafts the private sale agreement or Reservation Contract (“Contrato de Reserva”) this document will formalize the purchasing terms and conditions and should be signed by both the purchaser and the seller. It usually includes form of payment, completion dates and once this contract is signed it is a binding agreement.

    Usually in Spain this Reservation also includes the payment of certain amount of money to demonstrate to the seller the definite intention to purchase. This is known as Señal de Reserva, which is a reservation deposit which can be between €3,000 and €12,000. After paying the deposit the property is taken off the market, respecting the selling price for the agreed period of time, usually around 30 days.

    This deposit will serve as guarantee to the seller in the case the buyer backs off from the agreement. On the other hand, if it is the seller who withdraws their wish to sell the property, the deposit must be returned to the buyer.

  5. Private Purchase Contract: Also known as Contrato Privado de Compraventa, it creates a binding agreement between the parties and sets a completion date as well as the terms and conditions of the sale. It is usually signed between 2 and 4 weeks after the Deposito or reservation contract. During that period of time our firm will obtain the certificate from the Property Registry (Registro de la Propiedad) to control relevant information like: name of the property owner, encumbrances on the land and registered mortgages.

    We also make sure no outstanding payments are left on the property (owners community, electricity and water supply) by establishing a formal agreement on the cancellation of these debts before proceeding to completion. Thus protecting the buyer in the case the seller breaches that agreement, by allowing the purchaser to withdraw from the sale and claim for damages incurred or deduct the debts from the sale price along with any related expenses.

    It is usual practice in Spain to pay a percentage of the purchase price.

  6. Power of Attorney: Granting a power of attorney, formally allows another person ( either the lawyer or another person that you trust) to sign on your behalf . You can have the POA prepared while you are in Spain, just by making an appointment with the Notary and he will oversee al, the formalities. As an alternative, a POA can be prepared by a Public Notary in your country of residence, it will have to be legalized with the Hague Convention Apostille.
  7. Bank Account: If you do not have a bank account in Spain, we open bank account for our clients, and if they need finance, we provide advice on mortgages.
  8. Completion: A property purchase reaches formal completion when the Purchase contract ( Escritura de Compraventa) is signed by both parties (seller and buyer) in the presence of a Public Notary.

    The Notary is a public official who certifies if all the legal formalities of the contract have been complied with. In the completion of the Deed the agreed amount is paid and possession of the property is handed over the purchaser.

    The Sales contract states that the property is free from all charges and encumbrances, with no outstanding payments related to the property as well as free of occupants or tenants ( vacant possession) unless agreed otherwise between the parties.

  9. Registration of the Title Deeds: The Notary sends a fax to the Property Registry to begin the formal registration of the title deeds, once the Sales Contract has been signed, this is done to advance in the registration process.

You can request from the Notary a copy of the Title Deeds known as Copia Simple.

Once the registration has been completed the Property Registry will contact your lawyer, and inform that the Title Deed ( Escritura Publica) is ready to be collected.

Our services include overseeing the registration of your Title Deed, arranging all the paymnets arising from the purchase, as well as making the contracts with water and electricity supplies and setting up the direct debit payments from your Spanish bank account.

(+44) (0) 20 3393 4235

(+34) 951 08 23 38

CONTACT US FOR A CONSULTATION

info@lawyersinspain.eu

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