property investment barcelona

THE BUYING PROCESS

 

Once you have found the ideal property and have decided that you wish to move forward with the purchase, the next step would be to draw up a “Reservation Contract” by our specialised lawyer*.  A reservation contract is used in Spain as a standard procedure to reserve a property for a specified period of time whilst our lawyer conducts the "due diligence".  

 

 

RESERVATION CONTRACT

 

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 only. Such a document would include: 

• Full name of buyer and vendor

• Price of the property

• Property address

• Date to sign a “private purchase contract”

• Other special conditions (subject to finance)

• Deposit amount placed to reserve the property

 

A 6,000 Euro deposit will secure the property while the “due diligence” is being conducted. This deposit can be paid by credit card, bank transfer or in cash into the lawyers client account. The 6,000 Euros serves to reserve the property whilst our lawyer conducts the due diligence. The lawyer could also arrange a mortgage during this time. This reservation deposit is fully refundable in the event that our lawyer should discover any legal impediments pertaining to the said property. Should you continue with your purchase after the due diligence the 6,000 Euros will be used towards the purchase price.

 

PRIVATE PURCHASE CONTRACT

 

Once our lawyer has conducted a full and thorough *Due diligence, she will inform you of their findings and discuss moving to a private purchase contract if applicable. A private purchase contract is a contract between the consumer and the vendor, again typically setting out the terms and conditions of the contract. The contract will be prepared by the lawyer and will contain:

 

•  A legal declaration from the vendor that he/she is legally positioned to sell the property respectively

• The exact address and dimensions of the property and its features as set out in the “referencia Catastral” Government registration of the property.

• The completion date and hand over of the keys etc

• The agreed terms and conditions as agreed buy the consumer and the vendor

 

The buying costs in Spain vary from 10% to 13.5% of the purchase price, broken down as follows:

 

• 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category

• 1% Notary fee ( Notarization of property cost)

• 1% Legal fees 

• 1.5% Stamp Duty Tax ( A tax charged to make all documents legally effective)

• If you should require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank.

 

 

For further assistance on buying a property in Spain please contact us.

 

* All transactions will be guided by our own lawyer (  www.eurolawfirm.info ) to make sure that our clients get the best possible service & proteccion.

* In case of an exclusive property search agreement the buying client will pay a search fee to the agency.