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RESALE PROPERTIES
Purchasing a resale property is
relatively simple. Having chosen your property you will then
pay a deposit of around 10% (usually negotiable) of the purchase
price and a contract between you and the vendor will be drawn
up. Should you decide to cancel the sale after the contract has
been signed, the law is that you will forfeit your deposit to
the property owner, so please be sure in your own mind that you
are buying exactly what you want.
Your local lawyer will do the
usual checks & searches and prepare the papers for
completion. Completion takes place in a Notaries office where
you, or your legal representative with power of attorney, will
attend to pay the balance due and do the necessary signings to
have the escritura (deeds) put in your name.
All taxes and legal fees are paid
at this point also.
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NEW
PROPERTIES
Once you have selected a property
to purchase, we will facilitate and oversee the entire
process on your behalf. There are several stages during that
period at which payments for a property under construction will
be due, and for which you should be prepared.
This information is a rough guide
as payment terms vary with different constructors
A deposit of around 3000€ is due
when you choose a property. This reserves your property and
guarantees its' price in Euros on the day the deposit was paid.
When your deposit has been paid, we will assist you in the
opening of a Spanish bank account. You will need your passport
for this.
Payment 1.
Usually due 4 - 6 weeks after you
reserve your property, and for 50% of the value of the property.
Payment 2.
The outstanding balance is due on
completion of your chosen property.
When you pay the initial deposit,
reservation contracts will be drawn up by the developer and you
will be given a complete breakdown of the costs involved. Only
when you are completely satisfied with the contract should it be
signed.
Clearly it is not advisable to
arrange an inspection visit if you do not have the funds
available to cover the first stage payment.
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LEGAL FORMALITIES
We will be on hand to assist and
advise you through the legal process. We recommend that you
use an English speaking Spanish lawyer (abogado), and we will
therefore introduce you to a reliable and experienced lawyer if
you wish to carry out the necessary work. As in the UK it will
be he, as your legal representative, who will make the
preliminary searches and investigations etc., and will confirm
that the contracts into which you are about to enter are legal
and fair.
He will also answer any queries
you may have relating to property ownership in Spain. The
escritura is your title deed to the property and is given on
completion of new properties, once your legal representative is
satisfied it will be signed in front of a notary. The notary is
a public official who is required to witness all land transfers
in Spain. After the signing you will be given a copy of the
title deeds to retain until the original is registered and
returned - which could be some months later.
Spanish inheritance laws -
these differ from those in the UK and we strongly advise clients
to make a separate will to ensure that their Spanish property is
disposed of as they would wish. Again ask your abogado for
detailed advice on this vital issue.
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ADDITIONAL COSTS - NEW PROPERTIES
There area, as in the UK
additional costs associated with buying property in Spain.
We recommend that you allow 10 - 11% of the purchase price to
cover these comfortably. The charges will include the following:
IVA - Spanish VAT charged at
7% of the value of the property.
IAJD - Government tax.
Plus Valia - Local tax on the
increase in land value since last sold.
Legal Fees - All the fees
payable to your abogado, around 3 - 4%
Notary's Fees - Preparing and
registering the escritura, plus stamp duty.
Connection Charges - for electricity & water etc.
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MORTGAGES / LOANS
Interest rates in
Spain are affordably low and you might want to finance your
purchase with a mortgage. This can be arranged on your
inspection visit. Payments will commence on completion for 5,
10, or 15 years, but not beyond your 75th birthday. To arrange a
mortgage you will need to bring evidence of your annual and
monthly income for both yourself and spouse - even if the spouse
is not named in the mortgage. Clients in employment should bring
pay slips for the past six months and self-employed will need
two years accounts and the last tax statement.
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