An Essential Guide to Buying Property in Costa Del Sol

Legal Guide To Buying In Costa Del Sol

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BUYING A PROPERTY IN THE COSTA DEL SOL: A LEGAL GUIDE Buying Real Estate in Spain

Our Buyers Guide Is Meant To Serve As A Resource And Guidance For You While You Make Purchases Online Or In A Store.

Phase 1: Localization of the Property

Following your selection of the ideal house, the Selling Agents will have you sign a reservation contract outlining the conditions of the purchase agreement.
In addition to signing this agreement, you’ll also need to put down a deposit that varies from one rental unit to the next.
This constitutes both a formal offer to acquire the property and a withdrawal from sale.
Appointing an outside law firm to act on your behalf during this acquisition would greatly simplify and streamline the process.

Part 2: Giving Legal Advice

All of the purchase’s legal formalities will be handled by the attorney, including:

Find the rightful owner of the property and make sure the seller has the legal right to sell it.
Verifying the property’s registration in the appropriate registry.
Verifying if there are no liens or other debts against the property (mortgages, seizures, etc.)
Verifying with the local municipality that the required building permit has been issued for the property in question.

Assuring that all planning and construction regulations are followed. –
Examination of any private contracts (such as a reservation agreement or a purchase contract) or public contracts (such as a public deed) that may be needed to carry out the acquisition process, and their signature (if necessary).

The public deed is usually signed some time after the private purchase contract has been signed.

Your attorney will then make all of the relevant tax and expense payments on your behalf.
Included in this process is filing the public deed with the appropriate Land Registry.
At the same time, he or she will alter your name on any utility accounts and tax records related to the property, and can even set up automatic payments from your
Spanish if you so
If the Lawyers find no problems with the paperwork, then the next step could be:
Step 3: Contract Exchange, If Necessary.
You may now go to Step 4 of the process.

Step Three: Contract Exchange

The exchange of contracts is a binding legal step in the purchase of real estate.
After contracts are signed and exchanged, both you and the seller are legally obligated to complete the transaction.
The specifics will vary based on the property, but a 20% down payment is standard prior to signing any contracts.

Fourth, once everything is finished, you get the keys.
Your lawyer will handle transferring the agreed upon funds and signing the deeds on the completion date.
You can complete this process at the Notary in person, but if you are unable to travel to Spain, you can also grant your attorney “Power of Attorney” to sign on your behalf.
They are welcome to live into your brand new house.

THE PRICE OF PURCHASING

The total amount spent on fees and taxes during a purchase often ranges from 12 percent to 14 percent of the buying price.

CHARGES AND DUTY

COMPOSITION OF ESTIMATED FEES AND TAXES

Currently, the government levies a 10% transfer tax known as the “Indirect Tax on Acquisition

Lawyer’s Fees: 1% (may vary depending on law firm and services offered).

Cost of Notary and Registry: 1%

One to two percent of the loan amount is paid in origination fees (may vary depending on the type of mortgage).

It’s important to think about the property’s ongoing maintenance expenditures in addition to the purchase price.

OPERATIONAL EXPENSES OF THE PROPERTY IBI (local annual property tax).

Basura (waste disposal tax) (waste disposal tax).

Comunidad (community fees) (community fees).

In the case of a detached villa, tending to the garden and the swimming pool.

Protection for the structure itself.

Electricity, gas, water, internet, and other annual operating costs often account for 2-4% of the price of a home.

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