The 5 steps for a succesful purchase
Prime legal is a law firm in Marbella specialised in Property Law, which offers legal advice and personal service to nationals or foreigners who wish to invest or live in Spain.
We advise on all aspects related to buying and selling a property both, sell-side and buy-side, as well as other matters related to their management.
We take care of all the necessary procedures (pre-completion, completion and post-completion) and other after-sale formalities (e.g. changes of supplies), so that our client do not have to worry about anything.
What make us different?
We are convinced that communication, closeness and trust are the key we provide in order to offer our clients the best-in-class legal advice on their investments and real estate transactions on the Costa del Sol.
For that reason, we are proud to say that we keep our customers up to date with both the status of the transaction and the next steps to take.
Step 1 – Do your research & use a real estate agent
Once you’ve decided you want to buy a property in Spain, we recommend you research the area carefully and contact a reliable real estate agent.
Have a think what is the purpose of your investment, this is, if it will be for personal use or to let, if it will be for holidays or for permanent use.
It will help you to contact a reliable real estate agent in the area that can inform you the best options for your needs.
Step 2 – Deposit & reservation contract
Once you have chosen the property you wish to buy the first step is to secure the property and price by taking it off the market for a period of time.
To do this, you will be asked to pay a reservation deposit, this is an amount that can vary depending on the property price and at the same time, you’ll be asked to sign a reservation contract between you and the vendor.
This contract should include certain information and the basic terms of the agreement, i.e. property description, price, payment terms and completion date.
Since the reservation deposit is usually non refundable, it’s important to appoint a legal representative and get proper legal advice before signing or paying any deposit.
Please, keep in mind the process might be slightly different in case you buy an off-plan property and a background check of the developer is needed. You shouldn’t sign any contract without being certain there is a building licence!
Step 3 – Searches & private purchase contract
After signing the reservation contract and before the Private Purchase Contract there will be a period of time during which as your appointed Spanish lawyers we will carry out the Searches ensuring the vendor’s right to sell, the property’s legal status and others such as if it is free of any charges or debts as well as free of tenants and occupants, to mention just some of the necessary checks.
Also, this is the moment to negotiate the terms and conditions to be incorporated to the private purchase contract.
On exchange of contracts you should pay part of the purchase price which can vary from 10% to 50% of the purchase price depending on the type of property.
It is of great importance to ensure that all verbal agreements are writen down, e.g. property furnished. Note that you can only rely upon information given in writing.
Purchasers of property in Spain are required to have a Spanish NIE (Identification Number for Foreigners) in order to register the title deeds and pay the purchase taxes, and as well to open a Spanish bank account and to set up utilities.
To apply for your NIE as well as to act on your behalf in the purchase before the notary in case you can not attend personally you will need to grant a formal Power of Attorney (POA) in our favour. The easiest and cheaper way to grant power of attorney is to sign one before a notary in Spain. It can also be arranged through the Spanish consulates or a notary public with La Hague Apostille.
This is a good moment to contact a currency exchange company for the transfer of funds in case your currency is not the Euro.
Step 4 – Completion
Formal completion takes place when the parties sign the title deeds before a public notary and the balance of the purchase price is paid over.
At this stage PRIME LEGAL will take care of preparing all documents needed to complete, i.e. proof of previous payments, First Occupation Licence, Energy Performance Certificate.
As mentioned, in Spain completion takes place before a public notary who will witness the signing of the deeds and will ensure that both parties understand the terms and that those terms complied with the legal requirements.
This appointment must be attended personally unless you grant a power of attorney to Prime Legal to complete on your behalf.
Step 5 – Aftersales
This is the last stage.
Prime Legal looks after absolutely everything!
We will go through the hassle! We will take care of collecting the deeds, paying the taxes and register the property on your behalf in the Land Registry.
We will set up the utility services such us water and electricity, and as well we will register you with the Town Hall regarding to the local taxes.
All you need to do is just enjoy your new home in Spain!
Thaqnks ffor finally talking aout > Knoes thhe 5 ssteps ffor a succesful purchase < Liked it!
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