When you buy a home in Spain you will be presented at one point in the process wit three kinds of documents: Deposit document, Private purchase contract document, and completion by means of Public Deed of conveyance signed before a Notary Public document.
The deposit document is understood as a kind of purchase sale-contracts and thus has the same kind of legal systems and policies involved in the latter. So if there’s a problem either the seller or the buyer can sue for damages. The deposit is normally processed by a real estate agency,
What’s in a typical deposit document? You will find here a description of the identity of the vendor, the property and price. In these situations, a purchase-sale contract is set up the moment an offer is made and accepted by the concerned parties. Do note that the law in Spain doesn’t provide for the parties to withdraw unilaterally. But it is also part of the Spanish purchasing process that the lawyers will create a more comprehensive document that creates the option to purchase. Another thing they can do is to set up an “arras” contract which present the significant differences as to the effects and remedies of the parties.
Another thing you need to know about the reservation sum contract is that it allows the person planning to buy the property to make his offer according to his particular situation. Take this scenario: the buyer can include the specific phrase “subject to sufficient mortgage granted”, or subject to “property sold together with furniture for the offered price.” If the vendor or the agency (whatever applies to the buyer’s set up) accepts these terms the deal is finalized.
You may experience setbacks if the vendor or his representative first agrees to the condition but suddenly shifts gears in the middle of the process. Let’s say the vendor wants the buyer to handle all the costs related to he processing of all documents while the buyer feels that he should only pay the reservation sum.
Conversely, the person who bought the property may give a very large payment and sign a ‘contract’. With the assumption he is now the legal owner of the property, he sells his home in the U.K., shuts down his bank accounts, moves his money to a Spanish bank, has his furniture sent over, and when arriving on the doorstep of his property, discoversthat the agency didn’t inform the vendor of any deposit left with the agency and doesn’t plan on giving up the of place for that ‘agreed price’. All he has is his instruction to sell slip, which doesn’t bind him to honor the agreement. You can avoid this scenario and all the other problems that you may encounter by hiring a lawyer-advice equally applicable to buyers and sellers.
A Beach Paradise
Statistics and independent surveys show that an increasing number of people are considering buying a summer home in Spain. There are so many properties to pick from. There’s the 100 kilometers around the airports in Malaga, Granada, Murcia Alicante or Jerez, which have very convenient toll free roads leading to the Costas. Don’t forget the immense expanses of farmland in between. These include the famous Costas del Sol and Blanca but also include the increasingly popular Costas Calida and de la Luz.
One of the major players in the property rental and sales markets in southern Spain is the brilliant blue seas by the Straits of Gibraltar which has become even more accessible with Britain’s shared use of the Gibraltar airport. Thus there will be many low price carriers to bring people into the areas of Western Costa del Sol and the Costa de la Luz.
A COUNTRY ESCAPE
Spain isn’t just famous for its beaches. If you go inland, you will find that the towns and villas there are very picturesque, tranquil and full of history and culture-and both the visiting tourist and the person looking for land to buy will be able to find very affordable properties (seaside areas are usually more expensive).
It’s no mystery then that property buyers are more open to buying rural properties instead of the expensive coastal properties. However do take caution when buying there. Consult with a lawyer for legal advice. Choose someone who lives in the area where you will buy in so that he knows the ins and outs of that area. Why is this so important? Country land is not always supervised by local authority denomination. The outer boundaries of a property that has fallen into neglect may be used as a way of extending “reformed” property. There are also cases where a large property has been divided among the heirs of the original owner. This can lead to the property having a backlog of unpaid inheritance taxes and the delays of having to change the title under the name of the heirs before a legally recognized title can be given to the new buyer.
It’s clear that confidence in Spain’s real estate may have been smeared by cases of illegal property sales but with proper caution there’s no reason why you can’t buy your place in the Sun. With the proper research and consultation the process will be less stressful. Furthermore the joy of living in Spain is worth the effort.
It’s happened, you are officially the owner of the new property. You have the private purchase contract which is the legal proof that you have the right to call it your own and move in your things, and live out your dreams of owning a vacation home in Spain. However, despite the legal contract, some fraudulent vendors can still pull a really nasty trick: double sale of a property. He takes your money but then turns around an sells on a Public Deed to a new buyer while you’re off packing your things and taking care of loose ends in another country.. It has happened. Then when you come back you can’t find the vendor.
You can avoid this crime by registering the deed in the Land Registry so you are protected by the law. Furthermore, lodging all monies with the vendor’s lawyer will fraud proof your transaction. The Public Deed also transfers possession from vendor to buyer, though there are instances when the buyer allows the vendor to stay in the property after signing. But we highly discourage this as the vendor can suddenly refuse to leave the property. One way to take future precautions is to subtract from the purchase price an amount that would cover the legal costs of the eviction procedure.
These are just some of the reasons why you need the intervention of a Notary Public and Land Registry when you buy a home in Spain.
Getting a Lawyer
There is a big difference between the Notario with a lawyer. The Notario is a public notary and a government official who helps verify the form as legally binding. He does not verify or guarantee the accuracy of the statements within the contract. You still need a lawyer to act as the protector of your interests. Always hire a lawyer for buying real estate. The legal fee is well worth it as you protect yourself of what is at times can be very big headache and possibly a nightmar. After all you’d get legal help if you bought property at home so you should also do the same when buying property in Spain.
Dealing with Lawyers
Look for Spanish lawyers who are very fluent in English, among other languages, and have a background in dealing with foreign purchasers and advising on their property transactions. To get a good one, always check the personal recommendations and do research on the company. You can also ask the British Consulate for a directory of lawyers who speak English. The legal fees amount to one percent the value of the transaction, unless there are some unusual complications.
