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HOUSING
16
Buying A Home
THE BUYING PROCESS
The are four principle stages when buying
a house in Spain:
1. HOLDING DEPOSIT: Once the buyer has
established the property is free from any
debts, he puts down a non-refundable
deposit which takes the property off the
market and avoids gazumping. Make sure
you get a receipt if the deposit is paid
directly to the developer rather than held
in a solicitor's account. If you pull out of
the purchase, you lose your money.
2. SALE AND PURCHASE CONTRACT: This
contract is drawn up a few weeks after
you have paid the holding deposit and
should outline:
•name, identity number and address of
seller. If the seller is a company then the
company details and the particulars of its
representative must be disclosed.
•details of the property being sold with
reference to its registration in the land registry.
•description of what the property consists
of (eg. garage, storeroom, furniture, communal
pool, garden etc.)
•price, terms and method of payment.
•completion date
•details of guarantees associated with any
deposits or stage payments on the property
(legally required if demanded by the
buyer).
•implications regarding non payments of
stage payments or late completion.
•legal jurisdiction.
The remainder of the deposit, typically 10
percent of the value of the property, is normally
payable at this point.
3. ESCRITURA PUBLICA: The official document
of title deeds and transfer of ownership.
It must be signed in front of a
notario, an official government representative,
who confirms the identities of the
signing parties and that the contents of the
document and the statements made in the
Escritura by each of the contracting parties.
Bear in mind that the notario does not
guarantee that the contents are true. It is
up to you to check the validity of the facts.
On signing the Escritura, you must pay the
remainder of the cost of the property. If
the property has charges or debts attached
to it then you should make out bankers’
drafts to each of your sellers creditors
with the balance payable to him.
Remember the debts stay with the property
so don't rely on your seller paying off
his obligations out of the proceeds; you
should do it directly.
4. REGISTRATION OF DOCUMENTS: Once
signed, the buyer must ensure all this documentation
is correctly registered in the
land registry. Otherwise you could come
up against all sorts of problems later on
when you come to sell. It is usually best to
ask a local gestor to take care of this for
you.
GETTING A MORTGAGE:
The bank requires the following documents:
•passport or NIE
•work contract
•last three payslips
•latest income tax return
•pre-agreement with the seller
•proof that the property tax (IBI) on the
house is paid up
•details of other mortgages or loans that
you may have
•all property titles, both in Spain and
overseas
•certificate from work authorities (vida
laboral), showing your past work history
•records of your assets (bank/mutual fund
statements, etc.)
•prenuptial agreements, if applicable
•certificate of non-residency if applicable
(form available from the bank)
•details of tax paid in the past year, if selfemployed
SPAIN EXPAT SURVIVAL GUIDE WWW.EXPATICA.COM