Legal Guidelines

Prior to Visiting/Viewing
Most importantly, prior to coming to Spain, is the analysis of your financial situation and making sure that you have funds at your disposal for making a reservation deposit. The sum normally required is a minimum of €3,000, however this may be higher for more expensive properties. Cash or credit cards are the most commonly accepted forms of payment. Should you not have these funds at your disposal, you risk losing that dream home to someone that does!

Negotiation on Purchase Terms
Once you have chosen your property, you can negotiate the terms and conditions of the purchase. Sale subject to mortgage, payment terms or handover dates are some of the issues that may need to be discussed. In order to comply with all legal criteria, we may recommend that a lawyer assists in this process. This protects all parties in the negotiation and may ease the transfer at a later date.

Appointing your Legal Representative
We can almost guarantee that we can recommend a Spanish lawyer that speaks your language! A lawyer is necessary to provide the legal guarantees that the property being purchased is free of debt, embargos or charges and has fulfilled its obligations with regard to payment of taxes, local contributions or community charges. Debts remain attached to the property, not the individual, so it is crucial that a local lawyer conducts the necessary searches and checks to ensure a property is debt free before transfer to your name.

Formal Offer
Once the negotiations are complete, it is time to formalize the offer in writing. It is standard practice to include the reservation deposit with the formal offer, until private contracts are exchanged. The reservation deposit must never be given directly to the vendor. It should be given to your lawyer to be held in a protected, bonded account until completion of sale.

Exchange of Contracts
Once the owner has accepted the offer, the next step is to exchange private contracts or sign an option to purchase. This takes place within two weeks after the formal acceptance of the offer to purchase. Your lawyer will have completed all his investigations into the property and arranged with the owner to settle all outstanding debts. The private contracts shall set out the details of the agreed offer to purchase and set a date for final completion at the notary. At this stage, you are expected to pay between 10% - 30% of the purchase price, depending on the type of property and mortgage granted.

Final Completion
The sale is formally completed when the public property deeds are signed in front of the notary, the final payment is made to the seller, and possession of the property handed to the buyer, with the keys.

Once the property deeds are signed, the notary will advise the local land registry of the changed title deed. All the relevant taxes on the purchase will then be paid by your lawyer on your behalf and he shall register your title deeds. Your lawyer should also assist with the transfer of the local utility suppliers accounts to your name and arrange their payment through direct debit from a local bank account in your name

Costs Involved
As a guideline, estimate the total costs of transferring the property to your name to be 10% of the total purchase price.

The Fees
As a guideline, the fees and taxes are normally approximately 10% of the purchase price. All fees quoted are approximate fees only. Please consult your legal advisor regarding each individual purchase.

Legal Fees
€ 1.200 - €1.800 or 1% of the purchase value, whichever is the greater, plus IVA charged at the standard 16%

Notary Fees
This scale is fixed by law; however the costs range between €300 and €1.000.

Property Registry
Approximately 60% of the notary fee

These taxes are specific to the type of property purchased.
Commercial property, plots of land and garages attract IVA of 16%
Promotion, Developments or property purchased from a habitual trader – 7% plus 1% Stamp Duty
Standard Purchase – 7%
‘ Plus Valia’ tax is usually paid by the vendor. Should the vendor wish for this to be paid by the buyer, it must be stipulated in the terms and conditions of the private contract. This tax can range from a few hundred euros to several thousand on larger properties with a lot of land. Who pays this tax must be discussed with your lawyer prior to signing the transfer of the property.




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S.M.Servicios Inmobiliarios, s.l.
C/Almirante Ferrandiz (Cristo), 62 Bajo
29780, Nerja | Malaga, espaa

Tel. +34 952523267 | E-mail: smnerja@gmail.com
Fax. +34 952524853