Buying Spanish Property: an Explanation of the Legal System
So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete the purchase
It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. You will want to make sure that the Spanish property you are purchasing is free of restrictive clauses and debts.
There are two different categories in the Spanish legal processes for the purchase of property. First you have the Contrato privado de compraventa, or the preliminary contract, and then you have the Escritura de compravents, or completion contract.
Once both parties have agreed to the price, then a preliminary private sales contract should be signed. The vendor must provide proof that he or she owns the property free of any charges before this Contrato privado de compraventa has been signed. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. Nota Simple tells about outstanding debts.
The preliminary sales contract will be drawn up to contain all of the necessary details including the date of completion, the purchase price and the description of the property. Expect to pay a deposit that ranges between 5 and 15 percent of the purchase price. A bonded client account is where the funds will be kept for you. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.
The Escritura de compraventa stage, is the second or final contract stage. The customer will need to pay all fees and the price of the product on the date of completion. Both the vendor and the buyer must sign the contract at the same time. This contract is equivalent to a deed on the purchased property. The buyer will be provided the public deed of conveyance, also referred to in Spain as the escritura, in the presence of a Notary Public. A copy of this deed will also be passed to the tax office and to the property registry as well to make everything legal. In Spain, all deeds of sale must be witnessed by a Notary Public, which is a public official in that country. However, you need to have your own legal counsel to protect your own interests during the transaction. Part of the fees for purchasing include property tax, and legal fees for your Notary Public.
