What you need to know when buying property in Spain?
This is not easy for many, the question, for starters, you need to divide by two:
- What you need to know before the deal?
- What you need to know after the transaction?
Prior to the transaction:
You have decided to buy the property, and the first thing you want to understand, you have to do it through a real estate Agency or buy directly from the seller. Many believe that to buy a property directly will be cheaper than through an intermediary. Logic dictates that the Agency works for profit and this is the first that increases the cost of sale, and second, the Agency is interested to sell as dearly as possible, the Commission is a percentage of the selling price. But as strange as it may sound, but as a rule most of the buying Agency. Why? First, the price is often directly above the market. Real estate Agency can prove to the seller the real value of his property on the market and is typically lower than the desire of the seller. You, as a customer, especially a foreigner, it is almost impossible to do. Secondly, buying a property yourself, you must be sure that the low price is not due to a large number of debts. And check it before signing the contract and Deposit, the obligation of the Agency. Thirdly, by buying through an Agency, you get full legal support of transactions, opening Bank accounts, obtaining NIE, translation and verification of the completeness of the documents and pays for all this for the buyer, the seller, because the Agency Commission is always paid by the seller, not the buyer.
In any case do not pay any money before signing the Preliminary agreement as part of the contract of sale. This document does not need to register, but according to Spanish law all items are subject to obligatory execution by the parties. The main points which should be reflected in the Preliminary contract:
- The authority of the person signing the agreement. If the seller is a private person, to sign this document is all who has the right of ownership to that object.
- Have to be reflected the financial situation of this object. Not mortgaged under the loans, including mortgages. Not be under embargo, as an example, an internal document of the community of neighbors. All these points are reflected in the certificate on the property object "Nota simple". Order this document by a notary or in the Registry of property.
- The lack of the debt for utility payments and payments in comunidad. It is necessary to prescribe the responsibility on the seller of real estate.
- Have to be reflected the price and form of payment. Remember that you made your Deposit will not return if you refuse the purchase and return in the double size in case the seller refuses and it is consistent with Spanish law.
When signing the Contract of sale at the notary, in addition to the points described above, have to submit the document on absence of debts on taxes. Again, check what obligations each of the parties, what expenses each of the parties to the transaction.
After the transaction:
- Important-you must pay all taxes and transaction costs. The notary will tell you what deadlines you need to do. You can ask the notary to pay these costs on your behalf.
- Put all agreements on energy supplies (gas, water, electricity, etc) your property itself.
- Be sure to save all documents related to the costs associated with buying property.