|Asesoria/Gestor (Conveyancer)! | Obtaining your N.I.E. Number | Spanish bank account | Mortgages | Purchase Contract | Deposit payment | Searches | Expenses | Completion | Property registration | Insurance | Residency | Our service to you | After sales service|
|Once you have found your perfect property and decided to proceed with the purchase, the buying process will begin. Before you sign anything or pay any deposit you should take advice from a legal adviser. You can use either a lawyer or an asesoria/gestor.|
|The asesoria/gestor is your best friend and he/she will advise and assist you through every stage of the buying process by:
Once you have completed the purchase of your new home, he/she will then be available to:
You are of course free to use the services of the lawyer or asesoria/gestor of your own choice. However, having worked with a number of legal advisers since 2004, we can recommend to you English speaking lawyers and asesorias/gestors whose services we have used and whom we have found to be efficient, reliable and highly professional. None of these people are connected to our business in any way, so if you do not have your own legal adviser, then we can confidently recommend the services of these people.
|Obtaining your N.I.E. Number (foreigner´s identification number)|
| In order to purchase a property in Spain, you need an N.I.E. number which is obtained from the local police station (Comisaría de Policia) . You will need this certificate prior to completion of your purchase, so please do leave enough time to obtain it (min 2 weeks and possibly longer during the summer months). Your asesoria/gestor can apply for this for you but you need to accompany him/her to the police station. You will need to take your passport and a copy of it. The N.I.E. number is a very important part of Spanish life and you will be asked for it time and time again.
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|Spanish bank account|
|You will need to open a bank account in Spain and you need both your passport and your N.I.E. number in order to do this. The money you need to complete the purchase will be deposited into this account and withdrawn in the form of a bank certified cheque – the normal method of exchanging money at the Notary's office. Your utility bills will also be paid by direct debit from this account.|
Should you require a mortgage to complete on your purchase, the process is straightforward and similar to that in the UK. A mortgage can be arranged either in Spain or in the UK. Both Spanish and UK banks have the same requirements for lending money on a property in Spain and all require proof of income and regular outgoings. The level of mortgage offered is directly dependent on your financial status and also the declared value of the property you wish to purchase. The property must have had a registered title deed for 2 years or more and no Spanish or UK bank will consider a mortgage if the property does not meet this requirement.
In Spain the purchase contract is called the Contracto de Compraventa . Usually the purchase contract will be prepared by your legal adviser and must be agreed by both the buyer and the seller. You can seek to include any clauses which you consider to be important or to safeguard your position. You should consider issues such as the results of searches, mortgage applications and any other agreements between the buyer and the seller.
A typical purchase contract will include:
Description and address of the property
Before you sign this contract, please be absolutely sure that this is the house for you. The contract is binding for both the buyer and the seller and there will be penalty clauses should either party rescind the contract.
Once the terms of the purchase have been agreed with the sellers, the buyer will normally be required to pay a holding deposit of €3,000 which will remove the property from the market for a fixed period of time and enable the buyer's legal adviser to ensure that the documentation for the property is correct.
Before the signing of the title deed in front of the Notary, your asesoria/gestor will carry out searches and obtain a Nota Simple. This document confirms that the seller is the registered owner of the property and that all taxes have been paid. The asesoria/gestor will also check to see whether any debts or charges exist on the property and that clear title can be obtained. Prior to completion, all of the bills relating to the property, such as electricity, water, telephone and council tax, must be proven to have been paid up to date. These paid bills must be made available to the Notary at the time of completion.
If the property you are buying does not already have a registered title deed, this does not necessarily mean that you should not buy it. This is a situation very similar to a first registration in the UK. The property may have been in the same family for many years and now that it is being sold, the registration can be done. Your asesoria/gestor will still carry out searches, but instead of the Nota Simple , he/she will contact the Catastro Office for a certificate relating to the property. Completion of the purchase and obtaining the new title deed will generally take longer as your asesoria/gestor will need to gather all of the documentation relating to the property. If it is found that it is not possible to obtain the new title deed, the purchase cannot continue and your deposit will be refunded.
You must add between 10% and 11% to the purchase price of the property to cover the taxes and expenses that will arise during the purchasing process. The costs involved include:
Value Added Tax (I.V.A.) for new properties only
Land Registry Fees
Land Value Tax (Plus Valía)
Mortgage Arrangement Fees
The completion date is agreed between the buyers and the sellers – 6-8 weeks is normal. However, depending on the outcome of the searches, it can take anywhere between 3 weeks and 3 months between signing the contract and completion.
Completion takes place at the office of the Notary who is an officer of the state whose job it is to ensure that all the legalities are completed correctly. Both the buyer and the seller will be required to appear before the Notary in person and at the same time. If you are unable to attend in person, you must obtain a power of attorney for someone else (often your legal adviser) to sign on your behalf. This is best done in Spain with the help of your asesoria/gestor.
All transactions at the office of the Notary are conducted in Spanish so if your asesoria/gestor does not speak English, then you may want to consider using an interpreter. The final payment will be made in front of the Notary usually by banker's draft or banker's cheque. You will then sign the title deed and be handed the keys to your new home.
Your asesoria/gestor will now send the new title deed to the Land Registry for registration. It should be returned within approx 3 months.
The insurance of the property becomes your responsibility once completion has taken place at the Notary's office. Most Spanish insurance companies offer insurance as a two part policy with the building and contents being assessed separately. The process is similar to that in the UK and to obtain a quote, you will need to have the following information:
Your full name and NIE or passport number
If you do not live in Spain permanently, the insurance company will probably also need to know how many doors and windows the property has and whether they have metal security grills (rejas) or security glass
The law states that anyone who spends more than 6 months of the year in Spain must obtain a Certificate of Residency and declare their income tax in Spain. Your asesoria/gestor can obtain this certificate for you and help you with your income tax declaration. It is possible to apply for your residence certificate yourself:
You will need to complete an application form which is available from the local police station ( Comisaría de Policia) and present the original form plus a copy along with 3 passport type photographs, your passport and a copy of your passport at the police station. Other documents may be required depending on your circumstances. A list of these documents can be obtained from the police station or your asesoria/gestor will be able to advise you what is required. Once you have presented all of the documentation, you will be told how long the process is likely to take.
|Our service to you|
At Sunset Properties we will:
Monitor the progress of the purchase of your property for you
|After sales service|
At Sunset Properties, our company ethos is all about customer service. We offer a friendly, reliable and professional service where we guide our buyers through the whole process from beginning to end. We never pressurise anyone into buying anything and we never abandon anyone one they have bought a property - once a client always a client.
Our comprehensive after sales service is very important to us. We know how hard it is to deal with the practicalities of setting up a new home in a foreign country where everything seems to be done differently from the systems we are used to. If you have bought a holiday home then you may not be here in Spain for much of the time and you will need a reliable source of advice and practical help. This is something we pride ourselves on and, over the years, we have dealt with all sorts of requests from clients who have bought a property through us weeks, months or even years after completion.
Our after sales service includes:
Arranging for the connection of a telephone (where possible)
This purchase guide is for advice only,
please remember to always take expert advice when purchasing a property.