Our property specialists are dedicated to helping customers find their ideal property. We will also be able to recommend you independent legal and financial advisors to help you feel comfortable every step of the way.
- Property Reservation and Deposit Payment
Once you have found the ideal property on the Costa del Sol the first step is to sign a reservation contract and put down a deposit. This takes the listed property off the market, normally for the next 15 days, whilst your lawyer conducts the “due diligence”.
A 6,000 Euro deposit secures the property while the “due diligence” is being conducted. This deposit can be paid by credit card or bank transfer and it can be held in the Maklarbyran Costa de Sol S.L. client’s account or with a lawyer of your choice. This reservation deposit is fully refundable should your lawyer discover any legal impediments pertaining to the property.
The reservation contract would set out the basic terms and conditions of the purchase and would then be approved and signed by both the buyer and the vendor. This is a temporary reservation document which includes:
- Full name of buyer and vendor
- Price of the property
- Property address
- Date to sign a “Private Purchase Contract”
- Date to sign the “Title Deeds”
- Other special conditions (subject to finance)
- Deposit amount placed to reserve the property
- Property Check (Due Diligence)
Once the deposit has been paid your lawyer will immediately conduct a full and thorough check of all legal aspects related to the property. The lawyer will make sure there are no debts or embargos against the property, approve all property documents and confirm that the owner is the legal vendor. When all the checks have been satisfactorily carried out the €6,000 deposit becomes non-refundable and the process continues to signing the Private Purchase Contract.
- Private Purchase Contract (PPC)
Once the lawyer has confirmed that all the legal details of the property are correct the Private Purchase Contract will be prepared by the lawyer and signed by the vendor and the buyer. At the time of signing the PPC, the buyer will pay 10% of the selling price.
The contract will state all the terms and conditions of the sale, as well as the final date by which the title deeds must be signed, final payment made and keys handed over.
In the event of the buyer withdrawing from the purchase after signing the PPC, the buyer would lose the deposit. If it is the vendor who withdraws from the purchase after signing the PPC, he will have to pay to the buyer double the amount received.
- Title Deeds
The last step of the buying procedure is the signature of the Title deeds.
After a period of usually 4 weeks from the signature of the PPC the balance of the sale price is paid to the vendor and the keys are handed over to the buyer. The title deed (Escritura) is signed in the presence of the Notary.
Once the title deed is in the new owners name the lawyer will then register the property in the local land registry.
Costs of buying a property in Spain
There are three main purchase costs when buying a property in Spain:
- IVA or transfer tax
When buying new property direct from the developer, 10% IVA is applicable.
When buying resale properties, the following transfer tax percentages apply:
- Properties up to €400,000: 8% transfer tax
- Properties between €400,000 and €700,000: 9% transfer tax
- Properties above €700,000: 10% transfer tax
- Notary and Land Registry fees
- 1% Notary fee
- 5% Stamp Duty Tax
- Lawyer fees
- The lawyer fees are normally 1% of the purchase price
Agent fees are paid by the vendor