Choosing the Property

Serious thought may be required to first identify clearly in your own mind the type of property you need and the area where you would like to buy. Once armed with this information you would be advised to contact Spanish Dream Estates to establish what is available and the price you are likely to pay.

Using Spanish Dream Estates

We will provide a wide selection of properties and local information. We may also be able to help you seek out the perfect property even though we may not have it listed already. Agents do not normally make a charge to the buyer and therefore it makes sense for a buyer to take advantage of our helpful services. Agents' fees are usually paid by the seller as a percentage of the selling price.

Making an Offer

When you have decided on the property the first step is to make an offer through us. Negotiations will then proceed until a price is agreed at which point you should appoint a lawyer to formalise the agreement. You can either find your own lawyer, or we are happy to recommend one for you.

 Appoint a Lawyer

The lawyer, who should be fluent in your language, will carry out the necessary checks on the property and complete the legal requirements for the sale. The first check is normally to obtain from the Property Registry a "Nota Simple"  which will identify the registered owner and provide details of mortgages or embargos on the property.

You should obtain from the seller receipts for payment of IBI (Impuestos sobre Bienes Inmuebles) which is the annual real estate tax (community charge, garbage removal etc). These will show the "Valor Catastral" which is the assessed value of the property on which your property income tax (a small fee paid to government anually) will be based.

If you are buying a new property your lawyer will ask to see the "Declaracion de Obra Nueva" and the "Declaracion de Alteracion de Bienes Naturaleza Urbana " as these will confirm that the property meets all regulations and planning requirements.

Where there is a community involved ask for receipts for community charges and obtain minutes of the meetings from the president to identify any problems. A chat with the neighbours would also be a good idea.

Holding Deposit

After the price is agreed and the "Nota Simple" has been checked you would then pay a small holding deposit to take the property off the market and reserve it until you can make completion. Your lawyer will prepare a formal offer and agreement for this purpose.

Exchange Private Contracts

The exchange of private contracts or the signing of an option to buy would normally take place about 2 weeks after the formal acceptance of an offer, when the lawyer has completed his searches. The contract would set out all the agreed terms and state a date of completion. It is usual for the buyer to pay a 10% deposit at this stage which is non-refundable.

Complete at the Notary

On the assigned day buyer and seller (or their authorised representatives) will attend the office of the Notary to sign the "Escritura de Compraventa" (the title deed) which should state that the property is sold free of charges, mortgages and tenants. The notary does not check the terms but solely certifies that the parties have agreed them. At this point the balance of payment is made and possession passes to the buyer.

Your lawyer will arrange payment of taxes and fees, and register your title deed at the Property Registry. This should be done promptly. Don't forget to have the property insured.

The Costs

There are three fees to be paid: Lawyer's fees, Notary fees and Property Registry fees. Also there are two taxes: Transfer tax (ITP) and "Plus Valia". See below:

Who pays what?

It is normal practice for the buyer to pay the above fees and taxes with the possible exception of the "Plus Valia" but everything is negotiable and should be stipulated in the contracts.