A guide to Purchase and sale of residential property in Spain

Purchase and sale of residential property in Spain


While buying a private property and before preparing documents of sale, it is a common practice to prepare a contract between the buyer and seller, such a contract is known as preliminary contract. Though it is not mandatory to prepare this document, but it is done by sellers who also serve as real estate professionals.

Any private document prepared for the selling and buying of a property is considered valid by the law. If any individual signs such a contract, he is under obligations to meet the demands of every clause.

So, it is essential to seek proper and valid advice before any individual signs such documents. The notary does play any role in the process, but it can offer valuable information and eliminate all forms of doubts. The notary always suggests that no papers should have signatures if things are not understood properly also if the parties involved have doubts.


Things To Keep In Mind

If the seller is a real estate professional, then his agent or business manager will sign the document and if no one is present then the professional himself will sign. If the deal involves private people, then the document will have to have signatures from all the owners of the property.

If the property is shared between spouses, then both spouses have to sign the document. They must do this if the property happens to be private. In case a seller has provided another person the power of attorney to put signatures on the documents, then he has to submit the original documents stating him as the power of attorney or executor.

If the original owner is deceased and has an heir, then the heir would have to submit all the required documents stating that he or she is the owner of the property. If an individual is in doubt, then it is always wise to visit a notary and get things sorted out.

Before purchasing a property, a full background check should be done regarding outstanding taxes, foreclosures or legal disputes. In case of a mortgage a buyer will have figure out whether he should subrogate. If the buyer decides to take care of the previous mortgages on the property then he or she should gather more information on the same, special on the rate of interest for the previous mortgage. The buy should also find out adequate information on the repayment period.

If the property is part of a community then the fees have to be paid without fail, you must also find out if these payments have all been cleared and nothing is overdue. When it comes to these payments you must find out if they are validated by the community and  what is the frequency of payment.

The property price is also clearly mentioned in the contract. If there is a delay in payment, the method to deal with it will also be mentioned in it. When the contracted has been prepared, the seller will have to make a downpayment as a token, this will also be mentioned in the contract.


Documents For Purchase And Sale

A notarial instrument is nothing but a documented that is presented at the notary. In Spain such a document is rare and is used only for special cases. In usual cases, this document is not mandatory for carrying out a sale of property. However, legal experts state that this document should be prepared as it makes things stronger.

Both parties involved in the deal must produce documents stating that they agree to the purchase and selling of the property in question. The documents will then be attested by the notary and the proceedings will commence.

The role of the notary is not just to witness the sale but to also make sure that it goes through in compliance with the clauses mentioned in the document.

Verification of the seller’s and buyer’s identity will be carried out to avoid any form of fraud. So, both parties will have to submit suitable documents to validate the same.

The notary also runs a check on the title of the ownership of the property. The ownership of the property will be recorded on a public document.

The seller will also be required to clarify if the property being sold is his or her habitual residence. If so, then in case of a married couple the other spouse has to provide written consent for the sale of property.

The seller also has to provide information to the notary if the property to be sold is devoid of any occupants or leases.

The buyer should ask the seller to provide information on the payments made to the community if the property is part of one. The payments must be up to date with nothing pending.

The notary will require the seller to provide the property registration number. After the document of sale has been verified, the notary has to provide the buyer’s information to the authorities of Land Survey.

The seller will have to provide a certificate that shows the levels of energy efficiency of the property, a copy of the same is also to be provided to the buying party.

The seller will also have to provide an occupancy certificate, the authenticity of this certificate will be checked by the notary

Certain regions in Spain make it mandatory for the property to receive a proper technical inspection. The buyer will also be informed about the result of the inspection as to whether it has cleared the all the checks.

The notary will also conduct a detailed investigation on how the property has been paid for. The notary will collect all the bank account numbers from where transactions related to the property have been made. In case, the property sale is subjected to VAT, the same will be recorded in the documents.

If a seller wants to defer the price, the notary will inform the buyer of the possible risks whether to proceed with the deal.

The notary will also inform the seller of any hidden defaults and that they should be taken care of immediately by the seller.

It is the duty of the notary to convey to the seller that he or she has to pay the capital gains to the municipal and should keep the original documents and its copies The notary will also inform the purchasing party to make payments towards the Purchase Tax, Stamp Duty or payments towards Asset Transfer. This whole process can be done by the notary if the buyers want.

The notary happens to a professional dealing with such legal matters and they offer advice on such things for free. The notary also does not have any biases and informs both parties equally on the proceedings and the outcome. So, any party should not have any hesitation to seek advice from the notary as and when required.


The Process Of Buying A Property

Once the property has been acquired through proper documentation, the next step is the management of the legal documents

Paying The Taxes

The purchasing party has to pay taxes within a period of one month, failing which he or she may have to pay penalty charges.

Registering The Property

The documents prepared by the notary must be provided to the Land Registry. This should be done as fast as possible as it will prevent the seller from making any sort of claims in the future.

You must also keep in mind that the authentic document has to be presented to Land Registry with an authorized copy. You will have to follow a deadline to give the attested copy which should have the notary’s signature and then making payments towards Transfer Tax. After all the documents have been verified by the authorities, the property is transferred legally into the name of the buyer. The notary will then give the buyer his copy of the document. The notary is in charge of managing all the legal documents and verifying them.

If you are thinking in buying a property in Spain, get in touch now with Brassa Homes - Estate agents in Moraira since 1979.

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