The various steps in the process of buying a house are largely the same as in many other European countries. However, there are some details that are important when purchasing a property in Spain.
Step 1. Searching the property you have been dreaming of
You are thinking of buying a (second) home in Spain. Small, large, an apartment, a villa,
a finca …. you (maybe) have it all figured out. To orientate you start your search using the name of the village or city. If you don’t have any preference for a location, you can easily search on map
Step 2. The mortgage
Before you dream away, it is a good idea to think about the funding.
You can only borrow up to 70% of the purchase price. That means that at least the remaining 30% plus costs have to be funded in a different way, for example by using own capital. The bank will often require a valuation of the property prior to providing a mortgage loan. You can only borrow up to 70% of the purchase price. That means that at least the remaining 30% plus costs have to be funded in a different way, for example by using own capital. The bank will often require a valuation of the property prior to providing a mortgage loan.
Step 3. The broker
First of all this: everybody in Spain can start working as a real-estate broker. The result is that homes are being offered for sale by several parties. This happens quite often. So how do you find a reliable broker in this market? Does the broker know the area very well? At CheckPablo.com you can easily search for all the properties of carefully selected brokers..
When buying a house, you must usually pay a deposit of 10% of the purchase price and a private purchase contract (contrato privado) can be signed. With this document the agency can show the seller of the property that he has a buyer and the house will be withdrawn from the market. But not every agency has the competence to conclude a ‘preliminary’ purchase contract. Therefore only do business with a broker who can show a written permission to sell the property, who has been authorised to represent the seller.. This is the moment the lawyer comes into play.
Step 4.The lawyer
Choose carefully an independent lawyer. The lawyer is the one who will check the private purchase contract, analyze the titles of ownership, if there still exist financial claims (debts go with the property in Spain) and who contacts with the notary about the content of the notarial act (escritura). He also can arrange the compulsory registration of the deed in the property register (registro de propiedad). Only when the escritura is registered, you are the rightful owner. Finally, you must register yourself and the property in the Land Register (catastro) for the application of tax on real-estate.
Step 5. The notary
The only task of the notary consists in making ‘public’ make the private purchase contract (escritura pública). This is done by reading out loud and signing the deed at his office.
Think also about this!
– Applying for a NIE (número identificación extranjeros), a kind of tax number that you among
others need to buy a house. You can do this yourself at a Oficina de
Extranjería or have it done by an intermediary
– Opening a Spanish bank account
– Consider in case you do not speak Spanish well enough hiring an interpreter