How to purchase a property in Spain correctly!

First steps

Set your budget

Do some careful calculations and determine your budget. Remember to add between 10% (Costa Calida) and 12% (Costa Blanca) for taxes and fees.

Determine your chosen area - Decide where you would like to live in Spain.

You may already have a good idea from previous research or visits, or you may need some pointers. Ask your real estate agent for advice on which places offer what you are looking for.

Make a list of must-haves

Once you have your location and price target, make a list of what you want in the property. Keep in mind that you may not find a house that meets all your requirements, but with the help of a real estate finder, you should be able to find one that offers almost everything you're looking for.Use a real estate finder - make it easier on yourself and save time and stress by enlisting the services of a real estate finder. Let them find houses that meet your requirements and budget, as well as have the right location.

Make an offer

When you find your ideal home, you may want to make an offer on the price. Most owners are open to bids, although expect it to be a serious offer that reflects several factors, including the current market, condition of the property, whether you are a cash buyer, etc. Ask your real estate agent for advice on negotiating the price of the property.

Next steps

Once your offer is accepted, the buying process begins.

At this stage of the process, you should do the following:

Hire an attorney

Do this before making any down payment or signing any legally binding documentation regarding the property.

Have your lawyer perform basic legal checks on the property.

Sign the preliminary sales contract.

This document reserves the property for you and describes the terms of the transaction, including the deadline for purchase. The contract is signed by the buyer and the seller (or their representatives) and the buyer usually pays 5% of the purchase price at signing. If the house is sold with fixtures and/or furniture, the contract must include an inventory signed by both parties.

Mortgage application

If you need a mortgage to purchase the property, now is the time to start the application process. Ask your bank how long the application will take to approve and make sure the preliminary purchase contract takes this timeline into account.

Legal matters regarding the house

Meanwhile, your lawyer will perform a comprehensive checklist on the property to make sure it is 100% legal.

These checks include:

1-Checks of the property registry - to ensure that the description of the property and the legal owner match and to find out if there are any encumbrances or restrictions.

2-Planning checks - to ensure that the property has been built with the required building permit and construction plans. Or in the case of a property under construction, to make sure the developer has all the paperwork in order.

3-Tax checks - to ensure that the current owners are up-to-date with the payment of all taxes related to the property.

4-Community checks - to make sure the property is up-to-date with payments to the community of owners.

Final Steps

Sometime after you sign the preliminary sales contract.

Usually between two and eight weeks - it's time to finalize the transaction.

Sign the deeds

Both parties sign the title deeds in the presence of a notary public. Your lawyer should check the deeds and make sure everything is in order, as well as provide you with an oral translation of the contents.

Payment

Along with signing the deeds, you make the final payment for the property. The usual method of payment is by bank check.Handing over the keys - once the title deeds are signed and the final payment is made, you will receive the keys to your new home.

Registration

Your lawyer or real estate agent will arrange for the property to be registered in your name at the nearest property registry (Registro de la Propiedad).

Payment of taxes

Your lawyer or real estate agent will also pay the required taxes and fees on your behalf.

Utilities

Your lawyer or real estate agent will arrange for the connection of utilities or the transfer of utility contracts in your name. They will also set up a direct debit with your bank so that bills are paid automatically.

Post-sale services

You may need additional services after the purchase, including:Renovation and remodeling services - good real estate agents should be able to recommend professionals to make the necessary improvements to the property.

Moving services

You may need recommendations for a company to move your furniture and belongings to Spain. Ask your real estate agent for advice.