Buying a listing in Spain
Understanding the process of buying residential listing in Spain is essential to enable you to move forward with your chosen purchase without any unexpected issues. Therefore, we have created a guide to help you along the way, but please remember that this is just a guide, and you should always seek professional or legal advice from a qualified expert.
Step 1 – Arrange a viewing, select your chosen listing and negotiate purchase price
Once you have chosen the right listing for you, the purchase price will be negotiated on your behalf and once your offer has been accepted, you must be prepared to act quickly as the process in Spain is much faster than in other countries.
Step 2 – Resale and New Build
Your lawyer will check and approve the contract of sale or will prepare a new one;
Will verify that the listing belongs to the seller and ensure that listing is free from debt;
Will Verify that the listing has the correct building permissions;
Will provide you with an estimate of the taxes you can expect to pay on the purchase;
Will acquire and confirm the stated price on the deeds.
New build listing
Your lawyer will make all necessary checks on the land and on the constructor. Sometimes you may be asked to pay a non refundable deposit at this point but prices vary.
Step 3 – Signing Contracts
Once your lawyer is completely satisfied, the option contract stating your intention to purchase will be signed and you will be required to pay a deposit of 10-20% of the purchase price. This is the point of no return and you are now committed to the purchase. You will reach this stage fairly soon after ‘Step 1’, so be prepared with available funds to move forward.
Step 4 – Completion at the Notary
In Spain all residential listing sales are completed by a Notary. Your lawyer will arrange a date at the Notary where all parties must attend, the Purchaser, Seller and the Notary. The Notary’s responsibility is see that the final legal transaction is carried out and record the transaction on public records.
Step 5 – Title Deeds
You will be given a copy of the title deeds, the original will be presented to the appropriate land registry by your lawyer and registration will be completed.
Getting a mortgage in Spain
In order to obtain a mortgage in today’s climate, you should ensure that your finances are transparent, accurate and up to date, but that you also seek professional, independent advice. Should you wish, we can help you locate a financial advisor that can work with your interests at heart, and help track down a mortgage that best suits your financial situation.
Paperwork usually required to apply for a mortgage in Spain
- Proof of residence
- Your last six months of personal bank statements that show declared income and outgoings
- Your three most recent wage slips and latest P60 or equivalent (if you are self-employed then you will need your audited accounts for the last two years)
- Tax returns for the last two years and a letter from your accountant confirming your income and tax payments for the previous year
- Proof of any additional sources of income you wish to borrow against
- Copy of any tenancy agreements on any listings that are rented out
- Details of any pension you are receiving
Remember this is just a guide and you should seek independant advice.