PURCHASING A PROPERTY IN SPAIN
NEW BUILD OR RESALE, URBAN OR COUNTRY
There are some questions you may ask yourself before making this decision, standards of construction, curb appeal, living space, proximity to amenities etc.
Generally speaking, new builds are contructed to specific criteria and are insulated and far more energy efficient. For a country new build in the Alicante region you will need to purchase a plot with minimum 10,000m2.
Please bear in mind that conditions of properties are different in urban, rustic, new builds or resales.
Of course your legal representative will handle the conveyancing in any case but regulations are completely different in all categories of properties.
WHY YOU MUST USE A LAWYER
It is crucial that the legalities are completed by a registered competent lawyer in Spain.
The lawyer must be skilled in property law and it is highly recommended to have studied a Master Degree in Town Hall planning. Please ask the solicitor to show their credentials before contracting one.
The lawyer will carry out all the necessary legal searches such as:
- Verifying the ownership.
- Checking for any possible debts, charges, encumbrances, mortgages.
- Fully registered property in the Land Registry and Council.
- Debts with all utility services.
- Infractions, demolition orders, sanctions.
THE PURCHASING PROCESS
1. Once you have chosen your dream home a reservation contract is drawn up if required and also a purchase/sales contract is then drawn up including all the terms & conditions of this private agreement.
There are many types of contracts in Spain; Reservation contract, pre contract, purchase contract, option to buy contract, to mention a few. The lawyer and the Estate Agency will indicate and guide you to the correct contract that needs to be used and we proceed to draw it up accordingly.
2. Legal Searches/Due Diligence:
Your lawyer will assist you in the process of purchasing/selling and commence the necessary due-diligence and carry out the searches and check the legalities of the property on your behalf. Most legal representatives have architects on hand to carry out the full inspections on the property.
3. Other needs:
Your lawyer will help you and handle the process in obtaining the necessary requirements that you need to be able to purchase your property in Spain, if in the event that you do not previously have these:
- NIE: Official tax identification Number for people in Spain. Your lawyer can apply for this on your behalf.
- Power of attorney: This is a highly recommended option (which can be signed in Spain or the UK) so that your lawyer can obtain your necessary requirements on your behalf, always with your authorisation in writing.
- Bank account: A bank account is required for your utilities/direct debits.
- Mortgage: In the event that you require a mortgage, most lawyers work alongside banks and arrange for this on your behalf.
4. Completion date:
When the due-diligence has been carried out and everything is in order, your lawyer will then proceed to book the notary appointment where the purchase/sale deeds are signed and will assist you at the notary office translating the deeds or by power of attorney if required.
5. Aftersales process:
Once completion has taken place, your lawyer will also assist you in;
- Paying the property taxes.
- Registering your deeds in the land registry.
- Requesting all the name changes and setting up the direct debits for the utilities.
IMPORTANT NOTE: When purchasing a rustic property it is imperative to use a lawyer who is fully conversant with rustic property law and the legal status of your investment.