Welcome to our “How to Buy & Sell Property in Spain” tutorials
The tutorials are in order but you can view them individually.
How to find a property in Spain
This is the first step of your buying process. Firstly decide on which area of Spain you’d like to buy a property. There is then 2 way to look for your ideal property, through real estate or a Spanish bank. Looking to buy a property through the bank can sometimes be slightly cheaper compared to the market, however, using a real estate agent can help reduce risk during the buying process. Just make sure you are using a good, reputable agent as there is no law to regulate estate agents in Spain.
The steps of buying a property in Spain
First, the buyers make an offer, when this is accepted the seller and buyer sign an initial contract, and the buyer pays a deposit (typically 10%) which may be non-refundable if you are unable to complete the sale. The buyer then arranges the mortgage and then the full contract is signed in front of an authorised notary. Expenses then need to be settled.
How to find an independent solicitor
Make sure you hire an independent solicitor with no connections to the estate agent. Before signing anything or paying a deposit, make sure a solicitor has confirmed ownership of the property. We recommend asking friends and family for referrals or look to the Spanish consulate for advice.
Documentation for buying a property in Spain
Before signing anything: Always make sure you check the title deed to ensure the seller is really the owner of the property, also make sure they have paid all relevant taxes. Check with the local town hall that the boundaries on the title deeds are correct.
Full ownership and purchase of the property are only confirmed when signing the final contract, not before. It is then your responsibility as the buyer to hand the updated title deed into the land registry.
Spanish residents normally borrow up to 80% of the property’s assessed value, whereas non-residents are limited to 60-70% LTV. However, banks can increase LTV to 90% on repossessed properties. Banks will only lend of the determined value of the property, not the purchase so make sure you either have enough to make up the difference or only offer what the property is worth after an independent valuation. Also, remember to consider all the expenses associated with purchasing a property that the bank will no provide, this usually equates to 12% of the purchase price.
Banks can take 6 weeks to process your mortgage.
Selling your property in Spain
Choose an estate agent to handle the sale of your property, it is normal to have several estate agents. If someone wants to buy the property you will both need to sign an initial contract and make sure they leave an agreed deposit (usually 10%) – this will take the property off the market. This means the deposit is non-refundable if the buyer pulls out of the sale, however, if you, as the seller, were to accept a higher offer, you have to return double the deposit back to the original buyer.
The final contract is then signed to transfer ownership. Fees to be considered when selling your property include estate agents (can be 3-10% commission), energy performance certificate (150€ – 500€), Capital gains tax, and plusvalia tax.
Here at A H Solicitors, we are experts in Spanish property law. If you have any questions, please contact us.