The Adventure
Without doubt finding and buying your home in Spain is an adventure. We can make the whole process as enjoyable as a holiday. If you wish, we will meet you at the airport and take you to your accommodation (which you may require us to arrange) or if you prefer we can arrange for a hire car to be waiting for you.

In advance of your arrival we will have discussed your requirements in order to prepare a selection of properties to view that best meet your requirements. The next step is to visit potential homes. You will be escorted by a member of our team at all times and given time to ponder your decision with no pressure. We know that the moment that you stop enjoying the experience we have failed to deliver. If you are unable to find the right place at first we will, of course, be only to pleased to continue to search on your behalf.

Fees
Agents' fees are paid by the vendor and are usually included in the purchase price of the property.

Making an Offer
Once you have found your ideal property the first step is to instruct us to make a verbal offer. As soon as a mutually agreeable price has been agreed you should appoint a lawyer (abogado) to formalise proceedings.

Appointing a Lawyer
Make sure you instruct a lawyer who is qualified to practice in Spain. There are many who are fluent in Spanish and English.

They will carry out the essential checks and complete all legal requirements. Their first task is to obtain from the property registry a ´Nota Simple´ that identifies the registered owner and highlights details of outstanding mortgages or other charges against the property. The ´Valor Castral´ will be established. This gives the assessed value of the property on which your property tax will be based. When buying a new property the lawyer will gain sight of the ´Declaration de Obra Nueva´ and the ´Declaration de Alteracion de Bienes Naturaleza Urban´ for the same reason. Other details such as community charges (if appropriate), utilities (electricity, water, telephone, cable or satellite TV) will also be checked.

Bank Account
It is best to open a Spanish bank account at this stage. We have relationships with several of the leading institutions and can advise.

Holding Deposit
After agreeing a price and having the ´Nota Simple´ checked you would be required to pay a holding deposit of 3,000 - 6,000 Euros. This ensures that the property is withdrawn from the market and reserved in your name until completion. Your lawyer will prepare a formal offer and agreement contract for this purpose.

Exchange of Contracts
The exchange of private contracts or the signing of an option to buy normally takes place around 2 weeks after the offer has been formally accepted. At this stage the lawyer will have completed all the relevant searches. The contract sets out all agreed terms and sets a completion date. At this point the purchaser hands over a 10% deposit, which is non-refundable.

Completion
On the pre-determined completion day the vendor and purchaser (or their appointed representatives) attend the offices of a notary. The 'Escitura de Compraventa' (Title Deed) is signed and authorised by the notary. The 'Escitura de Compraventa' clearly states that the property is free of all charges, mortgages and tenants. The notary doesn't check the terms but solely certifies that the parties have agreed them. The balance due is now paid and possession passes to the purchaser.

Your abogado arranges payment of taxes and fees, the title deed is then registered at the property registry.

Costs
*  There are two taxes to be paid, Transfer Tax (ITP) and 'Plus Valia'. In addition there are three lots of fees; Lawyers fee, Notary fee and the property registry fee.

* Lawyers Fee: usually 1% of purchase price plus 16% IVA. (VAT) * Notary Fee: fixed by law and normally between 300 & 900 Euros. * Registry Fee: In the range of 40-45% of notary fee. * Transfer Tax: 7% of purchase price when buying a resale property but when buying a new development this becomes 7% plus 0.5% stamp duty.

Plus Valia: This is a local municipal tax which is assessed on the increase in value of the land since the property last changed hands. You can determine the exact amount at the town hall.

Who pays what?
In normal practice the purchaser pays all of the above fees apart from the Plus Valia which is paid by the vendor. All these terms will be stipulated in the contract. The vendor pays his own capital gains tax (if any) and estate agency fees.

See also : www.owningabroad.co.uk