Buying Spanish Property: the Legal Procedure Explained

So youve found your dream holiday home, arranged your mortgage in Spain and are now ready to complete the purchase

Buying property in Spain is highly regulated. The best thing you can do to protect yourself and your money is to hire an English-speaking lawyer or legal counsel to help you during the purchase and negotiation. Be certain there are no debts or restrictions on the property you plan to purchase.

The legal process for purchasing property located in Spain falls under two types of transactions. First you have the preliminary contract, or Contrato privado de compraventa, and then you have the completion contract, or Escritura de compraventa.

A preliminary individual sale bill should be signed after both sides agree to the cost. The vendor must provide proof that he or she owns the property free of any charges before this Contrato privado de compraventa has been signed. Debts are charged to the property themselves in Spain, and any outstanding mortgage amount would then be passed on to the purchaser. Nota Simple tells about outstanding debts.

Details to be included in the draft sales contract will include the date of closure, agreed upon purchase price and a detailed accounting of the property being purchased. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. A bonded client account is where the funds will be kept for you. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.

The second stage is the final contract stage, or the Escritura de compraventa stage. The customer will need to pay all fees and the price of the product on the date of completion. The buyer and seller will meet to finalize the deal with a contract, which is the same as a deed on the property. In front of a Notary Public the buyer will receive the deed of conveyance which is known as escritura in Spain. A photocopy of the deed will be provided to the tax official and property registrat to ensure everything is legitimate. In Spain, all deeds of sale must be witnessed by a Notary Public, which is a public official in that country. However, you need to have your own legal counsel to protect your own interests during the transaction. While buying any property do remember that property sales taxes and legal fees for the Notary Public is also to be paid by you only.