There are a number of steps to go through before you pick up the keys and crack open the Cava on your Spanish terrace. We'll obviously go through these in detail once you've found somewhere to buy but, until then, here's a guide to how the sales process unfolds so you will know what to expect!
1. Appoint a solicitor to start conducting all the necessary searches and make sure all the legal requirements are met. Spanish property laws safeguard both the buyer and seller but a solicitor is still advisable. Unless you speak fluent Spanish, you'll need to find one who speaks English and can translate and explain the legal documents. Your relationship manager will be able to recommend a good solicitor who is familiar with local property law.
2. Obtain your 'Numero de Identificacion de Extranjeros' or N.I.E - literally this means 'Foreigner's Identification Number'. It's a legal requirement that you have one before you carry out a transaction which has tax implications, such as buying a property. It's easily obtained by visiting the Foreigner's department of most police stations in Spain.
3. Arrange your mortgage, or alternative finance, if you haven't already. Hermes Property can help you with this. Note that if you finance your purchase, it is common practice in Spain for your lender to request a valuation from a third party. Your lender will generally insist on commissioning the valuation from their panel of valuers.
4. Check and sign the preliminary sale contract. Your solicitor will talk you through this. This is usually when you pay a deposit and both sides are committed to the transaction. If you wish, you can have a withdrawal clause included in the contract, which allows both you and the vendor to pull out: If you pull out you lose your 10% deposit; if the vendor pulls out, he has to pay you double the amount of the deposit.
5. Pay a deposit to secure the property and for it to be taken off the market - although this is not mandatory for every sale. You'll need to be 100% sure this is the home for you as deposits are non refundable if you change your mind. You can verify the title of the property you are buying, as well as any incumbent charges against it, through the Land Registry. You can do this online but it's in Spanish only. The deposit will usually be 10% of the purchase price.
6. Calculate all the costs involved including estate agents fees, taxes, valuation, notary, administration and legal fees.
7. Wait for you solicitor to complete legal investigations such as checking that the owner has the authority to sell, whether there's any outstanding debt on the property and if it has the full and correct title deeds.
8. Arrange a date for completion and signing in front of the notary. The notary will read the property deed aloud and ensure you understand the commitments you're taking on. Hermes Property will advise you on an achievable date for this, based on legal enquiries and the arrangement of your mortgage or transfer of other funds.
9. Pay for the property and applicable taxes. This is normally the purchase price plus around 10% for all other costs. We can help you budget for these when you arrange your mortgage.
10. Title will be registered at the Land Registry and your solicitor will advise you when you can expect to receive the full title deeds.
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