Legalities

Why appoint a solicitor?
To protect your interests, assuring you that the legal guarantees for the purchase of the property and all Spanish legal requirements are met.
The purchase process has three steps, the first and most important step being the Reservation of the property, the next step is to sign the Private Contract and the third and final step is Completion.
 
Reservation of the property
When you have found the property that you wish to buy, in order to have the option to purchase it, we must take it off the market. You will be expected to place a “Señal” or reserve deposit (usually around €3.000) which is normally held by the lawyer. The current owner has to sign a document, in which he gives you the option to buy the property.
 
After the first step has been taken care of, the lawyer will proceed to carry out all the necessary searches and investigations of the property with the relevant authorities in order to ensure that the property you are purchasing is in perfect legal conditions and free from any charges, debts or encumbrances. In the case of a new property, they will ensure that the constructors are reputable and solvent and will obtain guarantees that the property will be constructed and delivered according the agreed terms and conditions.
In the event that they should find any abnormalities with the property in question, the reservation deposit will be refunded to the buyer. If the property has a problem you will get your money back before the signing of the Private Contract. As soon as they can confirm that the property is in perfect legal situation they can go to the next step.
 
Private contract
Once the searches are complete, and the lawyers are absolutely certain the property is legally declared in the best conditions to purchase; a Private Contract is drafted and signed by both parties. This private contract sets out all the details of the agreement, payment terms and Completion Date. During this stage the buyer puts down a non-fundable deposit less the holding deposit paid at the reservation stage. (approximately 10% of the purchase price)
 
Completion
Completion on the purchase of the property takes place in the presence of a Spanish Notary, when the buyer and the seller sign the Title Deeds (Escritura de Compraventa) of the property. The Notary is an official of the State, his duty is to certify that the contract has been signed, and that the purchaser and seller have been advised of their tax obligations. He is the person that makes sure that all the legal requirements are in place and that the Completion money is paid.
If you are not able to be in Spain for completion, lawyers can make arrangements to sign the Title Deeds on your behalf. This procedure involves processing a Power of Attorney document which can be done during your next visit to Spain, or alternatively through a Notary in your own country.
 
Title deeds and registration of your property
Once the completion process has been finalized and you have become the owner of the property in question, the lawyers then proceed to register the property at the Land Registry office so that you will appear as the new legal owner. The Land Registry will notify your legal representative as soon as the Deeds are available for collection, which normally takes place between two and three months after the signing of the Deeds.

Utilities
Lawyers will also arrange for the utilities of the property (electricity, water, etc.) to be registered in your name and for the bills to be debited to your Spanish bank account.

Costs
As an overall guide one should allow an extra 10% charge (based on the sale price) for purchasing a resale or new property. Included in this fee are VAT, stamp duty, legal costs and registration costs.