Real Estate

Spanish Property Buying Process – Check the process!!

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Many potential buyers of Spanish property have been watching the market with interest. They have seen the market fall over 30% from the boom of 2007 to the bust of 2009. There was a slight rise in 2010 mostly due to changes in the tax regime, but in 2011, prices seem to be bumping along the bottom of the price curve. This indicates to many potential buyers that the time may now be right to take some action.

Many British buyers will be familiar with the process of property purchase in the UK but things work in a slightly different way in Spain. There has been much publicity in the recent past of corruption and sleaze in the Spanish system with some people who bought in good faith in danger of having their home bulldozed. This makes it even more important than ever that you select a good bilingual lawyer. Take your time about this and be sure that you can place your faith in him because he or she is crucial to a smooth running process. In fact, because of the state of the current market, you should be hyper about anyone who tries to rush you into anything.

Having found a property and negotiated the price, a Reservation Contract needs to be drawn up and signed by the vendor, the buyer and the agent. Once signed, the agreed deposit must be placed with the lawyer whilst the necessary checks on the property are being made. Should the lawyer find any defect in the potential purchase, your money must be returned in full. Of course, the lawyer will charge a fee for his work.

Parc Central Residences price will cost low on the budget of the buyers. The charging of the fees is less for the real estate agent. The investment of the money is less for the purchase of the house. The spending of the efforts is adequate to have the benefits. The selection of the right property is easy and comfortable.

Assuming that the lawyer finds nothing wrong with the property details that were given, the state of repair of the building, the right of the vendor to sell and that there are no outstanding tax bills or sitting tenants attached to the home, he will provide you with a certificate stating that.

The next step is to sign a Private Purchase Contract (PPC) with the vendor. It is standard practice to pay a  

non-refundable deposit at this stage. In normal times this would be 10% of the purchase price, but we are not in normal times so negotiate.

On signing the PPC a date is then set for when the remainder of the money is to be paid and the title deeds are to be signed. This is done before the Public Notary and his office keeps the deeds. The purchaser is given a copy of them at the time of signing and a certified copy a short time later. Once this has been done, the purchaser is responsible for the taxes, utility bills and community fees if applicable.

An official register is completed within the next few weeks as a public record of the transaction and this can be left in the hands of the lawyer. He will need to you to either deposit the fees with him or you might arrange to pay them through a direct debit.

The time usually taken from the time the PPC is signed to completion is very much the same as in the UK – about six weeks. However, this process can be speeded up or slowed down to suit the parties and is open to negotiation.

What is important to note is that you should not be hurried by anyone. Without being lackadaisical you should ensure that you have found the property that you want and be sure that you have negotiated the best price you can get. Having done that, make sure that you receive the best financial and legal advice and take nothing for granted. The key to not repeating the mistakes of those who have bought Spanish property in the past is to be certain that you understand exactly what is happening at each stage of the process. In that way your dream home will not turn into a nightmare.

James

James Deakin lives in California USA. He is an author of two famous novels, Rage of Angels and When Tomorrow comes. He is also the founder of classof2k9.com