Real estate conveyancing
Acquiring a property in Spain is best done under the supervision of a specialized lawyer. This intervention is advisable because in the past in some parts of Southern Europe building regulations were sometimes flouted, and the local notary does not carry out the control that one expects from a notary in Northern Europe.
Why are you better off with a lawyer than a gestoria or accountant for a purchase?
Because a purchase of real estate is in sé a legal operation with important financial consequences, and to put it with another image ..., when performing an operation you are better in the hands of a (legal) surgeon than with a nurse, especially if the purchase does not go as it should.
Legal & Tax Lawyers checks, advises and assists, and this with a lot of experience. We check who the actual owner is - so that, for example, you do not proceed to purchase a property from an heir who has not yet accepted the inheritance - and we verify whether the property is not burdened with debts or with a building violation that can be attributed to you afterwards. We verify the zoning plans of the area, and ensure the accuracy of data from the registry office and the land registry. If you wish, we also actively intervene in the price negotiations and ensure the legal validity of the purchase agreement.
We are present at the execution of the notarial deed and ensure the correct registration of the property in your name, taking into account all the ensuing fiscal obligations. We also intervene in all kinds of administrative procedures concerning real estate in Spain, from the declaration or regularization of works carried out on the property, to the control and correction of cadastral and registration data.
We can also represent you with respect to Spanish (tax) administration so that any notification regarding your property will be served at our headquarters, and timely action can be taken if necessary. This can avoid particularly unpleasant surprises should you not be in Spain for several months and then a notice is sent to you by the administration there.
THE PROCESS OF PURCHASING A PROPERTY IN SPAIN
The process of purchasing a property in Spain is a process involving several actors such as estate agent, lawyer and notary. Sometimes it often seems that these functions get mixed up. Yet each of these actors has its own role and responsibilities in this process.
What is the broker's job? The real estate profession is not a regulated profession in most autonomous regions of Spain. It is therefore important to make a good selection in advance of the real estate agent who will assist you in the search for your second home. The real estate agent will select your dream home based on your criteria and guide you through a critical evaluation of the pros and cons of the property.
As soon as you decide to make an offer on the property, you already enter the waters of the lawyer's job in Spain.
What is the lawyer's job?
In Spain, the notary function is much more limited and focuses only on the composition of a notarial deed based on the data provided to the notary by the parties. For this reason, it is fundamental to be accompanied by a lawyer or jurist who will assist you with the offer, the research of the property, the drafting of the compromise, the accompaniment of the deed and all the administrative operations after the signing of the deed.
What steps does the purchase process consist of?
1. Bid and reservation You make the offer for a property, preferably already through your lawyer, clearly indicating the price you wish to buy, the time frame within which you can purchase, and the conditions precedent. If the offer is accepted, a reservation agreement is signed with a down payment of usually 3,000 or 6,000 EUR, taking the property off the market for about three weeks.
2. Verification and compromise The period during which the property is taken off the market allows the lawyer to make a thorough investigation of the legality of the property (building permits or building violations), the debts of the property (municipal debts, mortgages, seizures, community of co-owners) in general, and in addition on special checks, such as possible possibilities of extension, right of view, right of passage, etc. If this check is found positive, then the lawyer draws up the compromise, in accordance with the findings of the check, and it is signed by buyer and seller. When the compromise is signed, it is customary to pay a 10% deposit. The compromise expressly includes a deadline by which the notarized deed of purchase-sale must be executed.
3. Notary act The notarial deed is drawn up by the notary, based on the lawyer's findings from the examination of the property. A complete description of the property is included. A detailed list of the purchase price and method of payment is fundamental. Furthermore, the deed is open to conditions and statements that the parties wish to include in this deed in accordance with the compromise.
4. Registration fees - deed registration After signing the deed, the buyer has one month to pay the registration fees, and then register the deed in the register of properties. Again, this is not the function of the notary in Spain, and is therefore handled by the lawyer. Other authorities, such as the municipality, land registry and utility companies will also be notified of the new owner.
Is this process different when buying a property on plan?
Of course, there are differences when purchasing a home on plan. Because the property is still under construction, the lawyer's research focuses on different emphases. Is there already a building permit? Do I as a buyer have sufficient guarantees in case of bankruptcy of the promoter or late completion of the construction? What about the specifications and down payments during the construction process? Even with new construction there are significant risks and so it is fundamental to have guidance in this process. At the time of completion, an additional legal check is desired before signing the deed of purchase. It is important to verify that the promoter is adequately insured for hidden defects that will only appear after the effective use of the property. However, the formalities following the signing of the deed of the newly built home are the same as those of the purchase of an existing home.