BuyingProperty in Spain: the Legal System Explained
Youve found the house and negotiated a price. Youve arranged your Spanish mortgages All there is to do now is complete the purchase. How?
Buying property in Spain is highly regulated. The best thing you can do to protect yourself and your money is to hire an English-speaking lawyer or legal counsel to help you during the purchase and negotiation. Be certain there are no debts or restrictions on the property you plan to purchase.
There are two different categories in the Spanish legal processes for the purchase of property. The first legal document is the preliminary contract, known as Contrato privado de compraventa, and the second is the completion contract, known as Escritura de compraventa.
Once the buyer and seller are in agreement on the price then they need to sign a preliminary sales contract. Before this Contrato privado de compraventa has been signed, however, the vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges. It is Spanish law to charge all outstanding debts to the actual property, and any remaining debt would be the new owner’s responsibility. Nota Simple documents were developed to validate if a property has an outstanding debts.
The completion date, overall price, and property description will all be elaborated in the preliminary sales contract. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. This money is held for you in a secure customer account. You can sign the private preliminary sales contract and not put down a deposit but it is not advised.
The Escritura de compraventa stage, is the second or final contract stage. The purchaser will be required to pay the balance of the purchase price and all fees on the date of completion. The buyer and seller will meet to finalize the deal with a contract, which is the same as a deed on the property. Also known in Spain as the escritura, the purchaser will received this deed which is usually in front of a Notary Public. To make this legal, a copy of the dded must get to a tax office, and then sent to a property registry. In Spain, Notary Publics are public officials required to witness a deed of sale, but you should also make sure to have your own independent expert legal advice to make sure that your own interests are protected during this legal process. Part of the fees for purchasing include property tax, and legal fees for your Notary Public.
