Purchasing a Property in Spain

The regulations surrounding ownership of property in Spain are straightforward, leaseholds and freeholds do not exist. If you buy a property it is yours for life.

When you buy a new property in Spain the purchase price is normally settled in a number of instalments. A deposit of approximately £2000.00 must be paid upon signing the purchase contract, as a verification of the agreement made. This formalises the purchase and you have a written confirmation from the construction company. If the contract is broken by the purchaser the deposit is non-refundable.

Payment schedules can vary but the following can be regarded as a general guide to buying new property:

Payment Procedures:
1. Upon signing the contract a deposit of approximately £2000.00 is paid. This means that the house is taken off the market, reserved for you and the purchase price is guaranteed.

2. The second payment of 20-25% of the purchase price shall be due approximately 2-3 weeks after signing the contract.

3. The next payment of a further 20-25% of the purchase price shall be due 2-3 months after the second payment.

4. The final remaining balance is due upon signing of the title deeds on completion of the house. At this stage you will also pay a fee for the legalisation of the title deeds.

Buying a resale property:
If you decide to purchase a resale property, the procedure is generally as follows:

1. Upon an offer for a property being accepted by the vendor a deposit of approximately 10% is paid. This secures the property and removes it from the market. A completion date is then agreed, generally within 6-8 weeks, at which time the balance is paid and the contract exchanged.

Mortgage:
Sunworld Estates shall be pleased to assist with the arranging of finance for the purchase, if required. Our financial consultant shall discuss the various options available and recommend the most suitable option based on your individual circumstances. It is also possible to arrange a mortgage from a Spanish bank. If you prefer this option the staff shall guide you through this procedure.

Title deeds:
'Escritura' is the same as title deeds, a document handing over the rights to the property and its land to the new owner. The 'Escritura' must be signed before a notary. The notary shall ensure that all formalities surrounding the transfer of ownership are in order. He will make sure that both parties are aware of all the rights and obligations connected with the handover of the property. The procedure in Spain is the same as in the UK in that the title deeds are entered in the property register after they are legalised.