627Purchasing Spanish Property: the Legal Course of Action Explained
posted on October 31st, 2009
Once youve chosen your ideal property and found a Spanish mortgage how do you go about completing the purchase?
It is in your best interest to hire an English-speaking lawyer to assist you in the process of purchasing regulated Spanish property. Make sure that the Spanish property is free of restrictive clauses and debts.
The legal process for purchasing property located in Spain falls under two types of transactions. First you have the Contrato privado de compraventa, or the preliminary contract, and then you have the Escritura de compravents, or completion contract.
There should be a preliminary private sales contract signed once you have both agreed on a purchase price. Before this Contrato privado de compraventa has been signed, however, the vendor needs to be able to provide proof that he or she owns the property, and that it is free of any charges. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. Nota Simple documents are designed to confirm whether or not a property contains any outstanding debts.
The completion date, overall price, and property description will all be elaborated in the preliminary sales contract. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. This money shall be held in escrow for your benefit. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.
Escritura de compraventa is otherwise known as the second or final contract stage. On the completion date, the balance of the price of purchase and all fees need to be paid by the purchaser. The buyer and seller will meet to finalize the deal with a contract, which is the same as a deed on the property. In front of a Notary Public the buyer will receive the deed of conveyance which is known as escritura in Spain. To make this legal, a copy of the dded must get to a tax office, and then sent to a property registry. In Spain, Notary Publics are public officials required to witness a deed of sale, but you should also make sure to have your own independent expert legal advice to make sure that your own interests are protected during this legal process. Also keep in mind that as the purchaser you will be required to pay property sales taxes as well as the legal fees for the Notary Public.
