Guide for buyers
Guide for buyers
Buying a property in and with the help of Costablancagreen is simple. Marc Torch will be pleased to guide you through the purchase process. Although there is no exact formula since each operation is different, below is an orientation guide for the purchase.
Once you have decided on the property you want to buy, the normal procedure is to make a reservation deposit that will depend on the value of the purchase and the period of time you wish to reserve the property. This deposit is always accompanied by a booking contract indicating the names and supporting documents, the agreed sale price, the duration of the reservation and any additional clauses that have been agreed with respect to the purchase.
At this point,Costablancagreen will begin to carry out the necessary check in the office of the Property Registry, in the Cadastre and in the Town Hall of the municipality, to make sure that all the documents of the property are in correct order, not there are embargoes or debts and there are no urban infractions. It will also contact the supply and service companies (water, electricity, gas, community, etc.) to verify that there are no outstanding debts.
The next step for the buyer and the seller is to sign a private contract of sale. The buyer will usually pay a 10% deposit (less the deposit of the Reserve). In this contract, the identities and details of the buyer and seller are established, as well as the agreed sale price and the date for the final transfer of ownership of the property before a Notary Public Deed.
PURCHASE-SALE PUBLIC DEED
In this final phase is when the rest of the amount is paid together with the signing of the Public Deed before a Notary. After the signature of the deed, it will be registered in the Property Registry corresponding to the name of the buyer.
- When the purchase is made directly to the real estate developer: New Homes. The VAT rate payable is 10% on the value of the property. In addition, a tax on Documented Legal Acts must be paid which, as of August 6, 2013, amounts to 1.5%.
- When the purchase is made to another owner: Resale Homes. In this case you must pay the Transfer Tax (I.T.P) which is currently 10% on the value of the property.
- Notary and Registry expenses. They are calculated based on the purchase price and the number of pages of the Deed. We can not specify exactly the percentage but it is possible to obtain an indicative budget that Villadom Spain Real Estate will provide you previously.
OTHER PROCEDURES REQUIRED FOR THE PURCHASE OF A PROPERTY
People residing in Spain only need their identification document.
To all those persons not resident in Spain that appear in the Purchase Deed, the Ministry of the Interior requires that they obtain a Foreigner Identification Number (NIE) that must be registered in the Tax Agency as a fiscal number necessary when paying the corresponding taxes and to be able to open a bank account in Spain. The N.I.E. can be requested directly at police stations, consulates or Spanish embassies. If you wish we can help you in this process.
We recommend that you open a bank account when you start buying a property, since you will not only need it for the same, but also for the direct payment of supplies such as electricity, water, etc. It is also advisable to have a Spanish will. This will simplify the succession process in the unfortunate event of the death of the owner and significantly reduce the duration and cost of the process.
TAKING OF POSSESSION OF THE PROPERTY
Generally, the taking of possession and delivery of keys takes place the same day as the signing of the Public Deed before a Notary. From that day Marc Torch-Costablancagreen will proceed to the change of ownership in the name of the buyer of the supply contracts (water, electricity, gas, community, etc.). Once you take possession of the property it is advisable to take out an insurance policy. Costablancagreen can make recommendations for any type of insurance policy.