Posted: Sat Feb 24, 2024 1:43pm
Hi Bryher Island and welcome to the forum,
You don't say whether the property you're planning to buy is for holidays or permanent living, so I'll restrict my response to the buying process.
The two main property portals for advertising Spanish properties are:
https://www.kyero.com/
https://www.idealista.com/
I'd recommend doing as much research as possible online before your planned trip to Spain in April, with a view to arranging property visits via the listing estate agent before you arrive. It's worth noting that the same property may be listed with multiple agents and sometimes at different selling prices - multiple listings are common in Spain and the agents split the sales commission, which is paid by the vendor, not the buyer. Be wary of any agent that suggests you have to pay this. Sometimes the properties have already been sold, but agents don't always remove the listings, so double-check the selling price and availability of each when you ask for a viewing.
You will need a lawyer ("abogado") in Spain, not in the UK. Always use an independent lawyer, not one working for the selling agent - you're paying a lawyer to work for you, not the selling agent and their vendor!
When you find a property that you want to buy and your offer has been accepted, the selling agent may ask you for a "reservation deposit", usually around €3,000 - this has no basis in Spanish conveyancing law, but it doesn't stop them asking for it! They may tell you that it's refundable, but there are many stories of unsuspecting buyers who did not proceed with their purchase and were then unable to get this so-called "reservation deposit" returned to them. If a vendor insists on this payment, tell them that you'll pay it to your lawyer - NOT the estate agent.
Your appointed lawyer will draft a purchase contract and check for any anomalies, such as outstanding debts on the property which, unlike the UK, will become your responsibility once you own the property; your lawyer should ensure that these are resolved by the vendor prior to completion. As part of their service, they should also arrange for all utility contracts (typically, electricity and water, but also let them know if the property has a piped gas supply) are transferred from the vendor to yourself, but double-check that they will do this. Once the purchase contract is signed, you will have to pay a legally-binding deposit of 10% of the purchase price, with the balance of the funds transferred in time for the completion meeting at the notary. Once the 10% deposit has been paid, if you (the buyer) pulls out, you lose your deposit, and if the vendor retracts, they must return double the deposit amount to you.
It's still common practice in Spain to obtain a Banker's Draft to pay the balance of your purchase funds at the notary. However, the banks charge a % fee based on the value of the Draft and they are expensive, so it's worth checking that the lawyer you plan to appoint has the facility for you to transfer the purchase balance to their Client Account, so that it can be paid electronically direct to the notary on the day.
For budget purposes, you should add around 14% of the purchase price to cover 10% ITP (property transfer tax), plus legal costs, i.e. lawyer, notary and land registry. For example, if you're paying €200,000 for the property, you will need an additional €28,000 to cover the ITP and legal costs.
You'll need property insurance which, in Spain, is usually provided by a "Home" policy, combining buildings and contents cover - ask on here for recommendations in your area.
You'll also need a Spanish Will to cover your assets in Spain, but written under the law of England and Wales - this will ensure that succession rights are in line with the UK because, under Spanish law, children are prioritised over a spouse. You could ask your Spanish lawyer to arrange this, but unless your affairs are complex, it would be cheaper to go direct to a notary. Don't try and include this in your UK Will, as it will make matter much more complicated and expensive for your estate/inheritors when the time comes.
As you can see, it's expensive to buy and sell property in Spain, so it's best to make sure you get it right first time. I'm sure you'll have other questions as matters proceed and there are no silly questions, so don't hesitate to ask on here as they arise - forewarned is forearmed. Enjoy! :o)
Kind regards,
Kim
My name's Alex and this is my website all about Moraira in Spain. Register now for free to talk about General property discussion in Moraira and much more!
