Find out what you can afford

•Property Hunting

•Negotiate with the seller and engage a solicitor

•Deposit & Private Contract

•Complete the Sale

The process for buying a property in Spain is slightly different to that in the UK, but the main challenge is the language – if you do not speak Spanish, you will need a bi-lingual solicitor or a translator (easily and cheaply available in the areas of Spain that are popular with British buyers).

This section provides an overview of the Spanish property-buying process to help you get started.

 

1. Find out what you can afford

As with any property purchase, it is a good idea to start the property-buying process by talking to several mortgage lenders to find out what you can afford.

It is also helpful to choose the lender you will use and start the application process – this can usually be done without requiring full details of the property you will be buying.

In Spain, banks are fiercely competitive and it may well be worth playing them off against each other – getting mortgage quotes from more than one bank and asking if they can better the other banks’ offers!

 

2. Property Hunting

Once you have a price bracket in mind, it is time to start property hunting.

Register with several agents and make sure you get to see the properties you want to see – not just those on the latest developments the agents are trying to sell.

Consider location carefully – while busy town centres may be ideal for an annual holiday, they may not be so much fun for living in all year round, especially during the tourist season!

Contact some of the specialist UK estate agencies that offer Spanish property for sale

Do not be pressured into signing anything immediately – as a foreign buyer, the agent may try to persuade you to sign a Reservation Contract – a Documento de Reserva. This gives you the option to buy for 30 days, following which you either proceed to the sale or withdraw and lose your deposit.

These contracts usually require a deposit of several thousand Euros and are not required – they only exist to help estate agents close more deals.

You may also come across agents who require you to pay a deposit before they will communicate an offer to the seller – avoid these at all costs.

 

3. Negotiate with the seller and engage a solicitor

Just as in the UK, it is vital to have your own solicitor when buying in Spain. Although Spanish law requires the use of an official Notary, their purpose is only to ensure that the contracts are legal – not to protect your interests.

A solicitor – whether British or Spanish – will need to be familiar with Spanish property law and fluent in Spanish.

Once you have found a property you are interested in, they will perform all the searches required to establish ownership and confirm it is free of other encumbrances – vital before you buy.

Although it is acceptable to negotiate verbally with the seller while the searches are going on, do not sign anything binding until the results of the searches and legal checks have been received.

Your mortgage lender may also require a valuation at this point – but if not, it can be a good idea to have the property surveyed by a local architect or surveyor (tasador)

 

4. Deposit & Private Contract

Once you have agreed on a price and have received the results of all the searches, you will need to place a deposit – typically 10% – for the property you are buying. You may also enter into a private contract of sale with the seller.

Private contracts are binding but cannot be used to for completing a sale – their main purpose is to allow for a delay between agreeing the sale and completing it.

If you will be able to move quickly from the negotiations to the final (public) deed of sale, a private contract is unnecessary.

 

5. Completing the Spanish Sale

Once you have agreed a completion date and payment method with the seller, have ensured your funds will be available on that day and selected a Notary (probably chosen by your solicitor), you are ready to complete.

On the day of completion, you, the seller, your solicitor and any other interested parties such as the estate agent will all meet to witness the signing of the deed of sale (Escritura de Compraventa).

At this time, you will make full payment to the seller and confirm the practical details of the sale – receiving sets of keys, etc..

Following the signing, the Notary will fax a copy of the signed deeds to the Property Registry, to be followed by the original versions, which will be recorded as the Escritura Publica – signed title deeds, which define the legal owner of the property.

You will now have to pay a number of taxes and complete some further paperwork, with which your solicitor should assist you if necessary.

 

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