1. Choose your dream home with the expert help of a respected and established local estate agent.
2. Through your agent make an offer, negotiate and agree the final purchase price for your dream home.
3. Next a Reservation or Option to Buy Contract is signed and a reservation deposit is paid, normally between 5,000€ and 10,000€ depending on the price of the property. This reserves the property at the agreed price for you normally for two weeks or three if a mortgage application needs to be made. During this time the owner cannot sell to anyone else.
4. You now need to instruct an English speaking Spanish solicitor to do the conveyancing for you and make all the necessary checks. If you don’t have a lawyer we would be happy to recommend and introduce you to one.
5. At this point it would be a good idea to open a Spanish bank account, you will need somewhere to transfer the funds to complete the purchase. If you are going to be financing part of the purchase with a Spanish mortgage then it will be necessary to open an account with the lender.
6. Make your mortgage application and pay for the mortgage valuation.
7. This is followed by discussing the mortgage offer and agreeing and accepting terms. The bank will need to be put in touch with your lawyer in order to co-ordinate the availability of funds for the completion.
8. I would also recommend choosing a Currency Broker to transfer funds and change them into Euros. A Currency Broker will give you much better rates than the high street banks and most have negotiated reduced or no receiving fees with the Spanish and U.K. banks
9. Apply for a NIE, Número de identidad de extranjero (Tax Identity Number) if the purchasers don’t already have one. Everyone who buys property in Spain needs a fiscal number for tax reasons. If the property is to be purchased in joint names then all the proposed owners will need a number.
10. Signing of the “Contacto de Compra-Venta”. Your lawyer will have drawn up the “Private Sales Contract” during this time and will have agreed it with the vendors including a “completion by” date. Once all the above steps have been done and your lawyer is happy that everything is OK and your funds are in-place the contact can be signed and the 10% deposit paid to the vendors. This is equivalent of exchange of contracts in the UK.
11. Signing of the “Escritura” or Public Deeds at the Notary’s Office. This is organised and managed by your lawyer who can sign on your behalf (with a power of Attorney) if you cannot get out on the particular date. At this time you will need to pay the outstanding amounts and all costs. This is completion of the purchase and you can now take possession of the property.