How the buying process works

Selling price

On New build property the reservation deposit required to remove the property from the market and for a purchaser to proceed to completion is typically €6000. A pre sales contract for sale is then signed between the purchaser and the Builder (which is witnessed by Lemon Grove Villas) setting out purchase terms and timescales to completion. This deposit is generally refundable subject to approved documentation.

Once the documentation is approved by your solicitor, a formal contract will be drawn up and signed signed by the purchaser and builder. Unless otherwise stated, advance payments are non refundable.

Should you purchase a new build property; the constructor will usually require a further payment of 20% – 30% of the agreed price within 30 days of the contract being signed. Some builders offer greater flexibility terms than others.

Should you decide to purchase a resale property, the standard way of operating is as follows:

A deposit of €3000 is required to remove the property from the market A further 10% less the reservation deposit will be required subject to approved documentation by your solicitor. The timescale is normally 2 weeks. The balance is due on completion usually within 45 days (NB Spanish differ to the British when selling property, they sell their house before they look for a new one!).

Offer to Completion Procedure

Once your offer has been accepted, your appointed solicitor will take full responsibility in ensuring all legalities are adhered to. This will include contacting the Land Registry confirming the property is registered in the vendors name, the property is free of debt and has no other liabilities. The solicitor will then prepare the public deeds for signature before the Spanish Notary. The final payment of the purchase price is then made and vacant possession of the unencumbered property is granted. The sale is then complete and you can move in to your new home.

Once completion has taken place, the Notary will submit details of the title deed to the local land register to inform them that you are the new owners. The Notary will liase with the Land Registry to officially record the transaction. Your solicitor will also be able to arrange for the utility services to be transferred into your name and for payments to be made from your nominated bank.

Additional Costs

You should allow around 10% of the property purchase price to cover all fees and charges involved in the process through to completion.

The breakdown:

I.V.A. VAT is 7%, of the declared value.

A.J.D. State Tax, (Tax on juridical Documented Acts). This is 1% of the declared value. New build only.

Land registry and administration fees.

Lawyer/ Solicitors Fees.

Recommendations for British Buyers

Solicitor

We work very closely with an English- speaking Solicitor based in Dolores who will act on your behalf when purchasing your new property. His practice will check and translate all contracts and title deeds into English.

They will also help to arrange for Clients a N.I.E., (Foreigners Identification Number), required by all non-residents when purchasing in Spain.

Banks

We have working relationships with several banks, all within easy reach of our office and with an English speaking director.