Buying a property in Spain - What documents do I need?
What documentation do I need to buy a property in Spain?
Upon finding your suitable property, you will need to obtain an NIE number (Numero de Identificación de Extranjero) – some Abogado’s (Spanish solicitors) can obtain this for you, they will have to obtain Power of Attorney to do this, if you are not available in person at the time. You will require a Spanish bank account also. We can also help with opening a Currency Exchange account, it is far cheaper than sending foreign currency directly from your bank.
What happens once a sale price is agreed for the property I want to buy?
Once a price has been agreed, we write up a Reservation Contract which has Name, Passport, NIE and solicitor information for both parties. It also has the agreed sale price, the 10% deposit to be paid and when, information regarding what is included in the sale and the proposed completion date for signing at the Notary (although this is not binding, depending on the circumstances of both parties). It is signed by the sellers and buyers and initialled on each page. Copies are given to both parties and also sent to each solicitor so they can proceed with the paperwork for the sale completion.
What deposit is taken when I agree to buy a property?
A deposit to secure your purchase is 10% of the purchase price, a €3,000 deposit is just a holding fee and is not secure until the 10% is received. This deposit is held in a Client Account until completion. This deposit is non refundable to the buyer if they decide not to proceed with the transaction (unless a mortgage is involved). Should the seller withdraw from the sale then they are obliged to refund the 10% deposit plus a further 10% to the buyer. Solhuse retains €3,000 to cover all marketing and administration fees should either party withdraw from the sale after the signing of the Reservation Contract.
Is a survey a legal requirement when buying in Spain?
If you are a cash buyer, then the choice is yours. If it is an old property then obviously we would recommend that you have one. If you are purchasing via a mortgage then yes the bank automatically insists on one.
What are the purchasing costs?
You will have to obtain an NIE number for all who will be named on the Escritura/Deeds. Notary fees, solicitor fees, land register, water and electricity contracts, and IVA of 8% if resale and 10% if new build, of the purchase price. We always say allow 12% of the purchase price to cover your costs, that is a maximum. Some solicitors will give you a package including all relevant costs, it’s worth asking. If giving Power of Attorney, then this fee is always separate.
How long is the purchase to completion process?
The timescale really depends on whether it is a straight forward cash sale or mortgage. If it is a straight forward cash sale, then the completion date is agreed at the time of negotiations. The solicitors for both parties will keep you updated on the timescales. This can be anywhere between 2 weeks to 6 months, sometimes longer depending on buyers/sellers circumstances.
