Things you should know about the process of buying your Spanish home.


Descriptions and details:
The detail on each property is the responsibility of the owner and has been stated as representing a true description of their property. Errors or omissions are solely the responsibility of the seller.

It is recommended that you use a solicitor to handle the purchase of your property.


Reservation fee:

To reserve your property we need to have a 3000 Euro reservation fee. This fee is non-refundable in exceptional circumstances it may be transferred to another property.

The reservation fee will remove your chosen property from the market for two weeks.


Deposit:

Two weeks after paying your reservation fee you will have to pay 10% of the purchase price as a deposit to the solicitor. (Deduct the 3000 Euro reservation fee)

Do not hand over your deposit to the seller directly always make the deposit through your solicitor. The solicitor should make a contract between yourselves and the seller, this is normally 'a promise to buy and a promise to sell' within a specified time usually 90 days. If this does not suit you for any reason we will speak to the seller and make a date to suit you both. Inform your solicitor who will change the usual 90-day rule.

Be sure what is and is not included in the sale e.g. furnishings etc.

If you cannot return to Spain for the completion of your sale make a power of attorney with your solicitor or some other trustworthy person.

Always allow +10% of your purchase price for legal fees. (You should get change)


IVA:

The IVA is the tax levied on property when it is sold, this applies to re-sale or new build. Often however, a builder will include IVA in his price, therefore the above 10% allowance is reduced by the 7% IVA.


New Build Villas:

When you purchase a new villa there are many considerations to make, for instance, walls and fences, door and window grilles, entrance gates, fitted kitchen(many spanish builders do not supply the kitchen!). The builders we deal with are very specific about the packages they offer, but it is wise to ask if something is not mentioned on their specifications. Quite often a new build villa seems to be a bargain compared with a re-sale, but as any new owner will tell you there are quite a few items not supplied by the builder that are necessary,- light fittings for instance to name but one.


Mortgages:

The mortgage rates at Spanish banks are very competitive and can be arranged quite easily subject to status. The banks here require exactly the same evidence of earnings etc as in the UK. The banks will tell you how much you can lend on your property with regards to the earning-borrowing ratio. Mortgages can be up to 80% but more often they are around 50-60% depending on status of course.If you are taking a mortgage be sure of the extra charges the bank will make.There will be extra charges at the Notary as the bank will require a second escritura for your property and there is an arrangement fee that varies from bank to bank. So be very aware of these charges, because no-one mentions them does not mean you will not be charged. In some banks it is customary to include these extra charges in your loan and with others its not, so always ask.


Viewing:

When you view re-sale property usually it is a case of what you see is what you get with regard to location and orientation. However, if there is a vacant plot besides the property always consider that at some time in the future this may be built on. For the most part however, you can see where your neighbors are and the amount of privacy the plot allows.

Buying a new build off plan is perhaps a little more difficult as you have to imagine what the site will be like when the development is complete, often you can view a pilot house which shows the finish you can expect on your proposed villa. The developers that we deal with will place a property on the plot facing the way that has most advantages for the view and the sun, but the final positioning will be your choice.