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Arranging legal
representation :
- We do not undertake any
legal work for purchasers or sellers. We strongly recommend the use of
English speaking lawyers who have considerable experience in working with
English clients over the sale and purchase of property. They are also
experienced in setting up Spanish based companies for those clients who wish
to buy as a commercial enterprise.
- We can arrange the
opening of a Spanish bank account (essential for property owners) at a local
bank which has English speaking contacts.
The legal process:
All this work is
undertaken by your lawyer (abogado).
- Establishing the
seller´s title:
The following documents all contribute to confirming that the person selling
the property is the legal owner/holder of the title and that there are no
charges outstanding on the property.
(i) Title Deed (Escritura Publica) is the definitive document in which you
will find the names of all owners, the declared price which they paid for
the property and a description of the property, including size, boundaries,
number of floors etc. The escritura also contains detail of any mortgages.
You must have a copy of this document prior to signing a Private Contract.
In many cases, Casa Cueva will already have obtained a copy of this when the
property was advertised on the web site. If not, this is one of the
documents which the lawyer will seek from the seller.
(ii) Property Registration Certificate (Nota Simple) is often a single sheet
of paper provided by the Land Registry and is a summary of all the details
registered there, eg the name of the owner(s) and any mortgages on the
property.
(iii) Other supporting documents: These include: IBI receipts. These are
proof that the owner has paid the annual local property tax (Impuesto Sobre
Bienes Inmuebles de Naturaleza Urbana/Rustica) - similar to rates. Often
these are very small amounts, but as a purchaser you will be liable for any
unpaid taxes. There are also local rates (Tasas por suministro de agua,
basuras y alcantarillado) which are levied locally for rubbish collection,
street lighting and water supply. The periods for payment can vary from
municipality to municipality - some are annual, some are quarterly and
others half yearly. In each case, unpaid bills can result in an embargo
being placed on the property, which means that it cannot be sold until the
debts are settled. Other invoices to chase include electricity and telephone
bills. These will show the name and address of the owner and it is then
possible to check if all bills have been paid up to date.
- Stages in the
process
The first phase is the signing of the Private Contract (Contrato Privado).
This will be drawn up by the lawyers and is binding. This means that if the
purchaser defaults, they stand to lose their deposit. If the seller
defaults, the purchaser can claim a sum twice the deposit. The seller agrees
to sell and the purchaser to buy at an agreed price within an agreed
timescale (variable as agreed, but routinely about one month) . It is usual
for the purchaser to pay a deposit of up to10% of the price on signing the
private contract. The purchaser will be required to sign the document OR
give authority for their lawyer to sign on their behalf.
The second stage is the signing of the Escritura Publica. This will be done
at the office of the Notario and coincides with the payment of the balance
of moneys due - usually 90% unless stage payments have been agreed. Both
purchaser and seller need to be present with the Notary to sign; the only
way to avoid being present is to give Power of Attorney to someone to sign
on your behalf. This is often given to the lawyer acting for you.
- Possible costs:
Lawyers´fees: these vary considerably, but as a rule of thumb,
expect to pay around 1% of the purchase price, a minimum of 1,500€.
Notary´s fees: expect to pay between 350 and 700 euros depending on
the cost of the property and the complexity of the work.
Transfer tax: you will pay 7% of the declared price shown in the
Escritura Publico.
Property Registration: all property sales attract this fee, which is
likely to be between 50 and 700 euros.
It is normal for the
purchaser to pay all of the above.
There are many books on the subject and lots of
information on the internet. Also on the internet is the Spanish Land Registry
and you can quickly establish that the property has been registered and that you
are dealing with the person who owns the property.
If you wish to visit the caves there are English
speakers in the management company that will be pleased to help and advise you.
There are several English speaking lawyers available that we can put you in
touch with.
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