Property Purchase Process – An Overview
1. Find a Property
Carry out the research as mentioned in the Buyer’s guide to find your ideal property. BXB Estates has access to over 10,000 properties on the Costa del Sol and our experienced sales agents can assist you every step of the way. All our agents have lived and worked on the Costa del Sol for many years and are perfectly placed to advise you on the properties of your choice. If you are new to the Costa del Sol, you can arrange for one of our sales agents to show you the different areas, the best beaches, shops, restaurants or schools.
2. Making a formal offer or reservation
Once you have found the property you wish to purchase, your sales agent can advise you on the offer that is likely to be accepted by the seller. You should consider employing a lawyer at this stage and discuss the offer with them. It is customary in Spain to sign a reservation agreement, which takes the property off the market and also freezes the purchase price. The reservation fee is usually between 3,000 € and 12,000 €. Your lawyer will advise you on the reservation agreement and make sure that your deposit is fully refundable if you are unable to get financing or if the paperwork for the property is not in order. We advise you to pay the reservation fee directly to the vendor’s lawyer or to a bonded or escrow account that has been set up for this purpose. Always try to avoid paying the money directly to the seller.
3. Conducting a property search
The property search is carried out by your lawyer and ensures that the seller has the right to sell the property, free of any debts, charges, rights and will identify any other problems that may affect the property. Once the lawyer has determined that all the paperwork for the property is in order, you can proceed to the Exchange of a Private Purchase Contract.
4. Exchanging of Private Purchase Contract
A Private Purchase Contract is drafted between the seller and the buyer until the public deed of purchase is ready. This document includes all the terms and conditions for the sale and sets the completion date for the property transfer. At this time, the buyer also pays the deposit to the seller, usually 10% of the sales price if you are buying a resale property. The typical agreement stipulates that if the buyer backs out of the contract, they lose the deposit; if the seller backs out, they have to pay double. Of course, the buyer and seller may choose another type of agreement if they prefer.
5. Completion
All property transfers in Spain must be certified by a notary. If the buyer also intends to have a loan/mortgage then the applicable bank will submit a Mortgage Title Deed to be signed together with the signing of the Property Title Deed. The signing of the Title Deeds of the purchase and the transfer of the full selling price to the seller formally indicates that the sale is completed. You will receive the keys at this point and you can now move into your new home.
6. Formal registration of the Title Deeds
Approximately a week after completion, once all documents are formally stamped, the Property Deed and, if applicable, Mortgage Deed are collected from the notary’s office and lodged with the Property Registry. Formal registration of the property takes approximately two to three months, however on occasions can take longer.
General Information - Do your Research
General Information - Consider the Financing
General Information - Legal Considerations
Property Purchase Process- An Overview
Taxes and Fees payable – An Overview