01 Mar How to buy properties safely in Spain?
BUYING PROPERTIES IN SPAIN: IMPORTANT ASPECTS
Buying a property in Spain usually is the fulfillment of a dream. Therefore, we would propose you some information to avoid converting this dream in nightmare.
Who shall advise me?
As we already said in another document, only qualified and registered lawyers can advise you about the legal situation and the contractual aspects in the purchase of real estate. It is important to note that Real Estate agents in Spain are not legally regulated and are not covered by any professional insurance.
What shall I check before signing any contract?
Before signing or paying anything, we shall check at least three important elements:
- The vendors are effectively the legal owners of the property.
- That the property is correctly registered within the land registry.
- That no administrative sanction is pending on the property.
These elements could defy all logics however we have seen them in action.
Which types of contracts shall we sign?
Usually 2 different contracts will be offered by the Real Estate agents.
- Reservation contract
- Deposit contract
Real Estate agents will push you to sign as soon as possible the first one which is the reservation contract. We would recommend not signing it before at least having checked the three elements aforementioned.
The deposit contract is the most important one and is necessary; this is the legal contract which will grant you the basic rights of a proper Spanish purchase contract.
As we already said, we highly recommend that every contract shall be redacted or revised by a qualified lawyer otherwise you would expose yourself to incur in some illegality caused by the negligence of the estate agents and as they cannot be insured you would surely not get damages for your loss.
Which documents do you need to appear in the Notary Office?
- Original passport or ID card from your country
- Original NIE number
- Original doc about your matrimonial regime (if the regime is not the common one)
If you wish to buy through a company the documents needed are more complicated.
Also, the Title deed can be signed using powers of attorney.
What are the general costs when buying a property?
Costs shall be between 10 and 13% of the purchase price.
| TYPE OF COSTS | % purchase price |
| ITP (Stamp duty) vary in function of the regions |
8 to 10% |
| AJD (another category of Stamp Duty) vary also in function of the regions |
1 to 1,5% |
| Notary | 0,4 to 0,6% |
| Land Registry | 0,2 to 0,4% |
| Lawyer | 1% |
Please not that lawyer’s fees are contractual therefore they will be exposed in a proposal of fees and can be moderated. The rest of the costs are legal costs, they are not contractual and cannot be moderated.
Will we get any document explaining the physical situation of the property?
In many countries, when signing the purchase of a property it is compulsory to have some reports about the electrical wires situation for instance, or about the energy efficiency of the property, etc…
Please be aware that in Spain no report about the entire physical situation of the property shall be prepared for the purchase Deed. The only document you will be provided with is the energy certificate which is not very relevant in the South of Spain.
Finally, the previous owner will not be responsible for any damages not discovered before the purchase, so this is quite important to take into account this aspect.