Advice for Buyers in Spain
THE PURCHASE PROCESS
The text below explains the usual steps taken in order to complete on the acquisition of a property in Spain.
a) Deposit Contract
This consists of putting down a deposit with the vendor using a lawyer, representing a small part of the purchase price, in order to confirm that the buyer’s interest is genuine and have the vendor withdraw the property from the market whilst the buyer and his lawyer check all is in order, that the property is free of all hidden charges and legal impediments, in order to transfer the property on the agreed terms. Should the sale go through the deposit will be part payment of the purchase price. The deposit should be refundable subject to agreed conditions with the vendor
b) Private Sales Contract
Once the legal situation of the property and the vendor´s legal capacity to transfer the property with all the necessary formalities have been checked, both parties may move on to the private contract. The private contract will clearly state the identity of both parties, the description of the property, the conditions of the transfer, the price and its form of payment, the date of the signing of the public deed and the form into which the expenses and taxes from the sale of the property will be divided. From this moment onwards, the “sales contract” is legally binding for both parties.
c) Public Deed
Once the private contract has been signed and in order for the transaction to be considered complete and for the new owner of the property to be inscribed in the Property Registry, you need to obtain the registered title deed (“Escritura Pública”). This document must be signed by the vendor and the buyer in the presence of a Spanish Notary who testifies the identity of the parties and sets out the principles of the sales agreement, including the description of the property, the price and form of payment. This is the moment when the buyer receives the keys to the property.
d) Registering in the Property Registry
Once the corresponding taxes have been paid, the public deed will be registered in the Property Registry to make the sale public and thus completing the entire purchase process. From then on, only the buyer will be able to sell or encumber the property. In general lines, this is how Property Registry protection works.
One can skip steps a) and b) and go straight to the public deed if the buyer is aware of the taxation and legal situation of the property and has the necessary funds available for the purchase.
This is an excerpt from our comprehensive 11 page Buyers Guide prepared by our recommended lawyer Adolfo Martos Gross from Gutierrez del Alamo y Martos. To receive a FREE copy please contact us
Adolfo Martos Gross – Socio
C/ Carlos Mackintosh 3, Ofc A-3
Tel:+34.952 82 89 43
Fax:+34.952 86 67 86
Posted on April 29th, 2009 filed under Property and Other News.