The purchase of a property in Spain requires a series of legal and administrative procedures, so our job will be to accompany you throughout the process of acquiring your property in Spain.
From the definition of your project to the signing of the deed before the notary to guarantee you a secure transaction in the best conditions’.
Congratulations, you have found the property of your dreams! Therefore, you will be asked to make a deposit contract.
The earnest money contract is a private contract between the buyer and the seller, it will be necessary to deliver it before a notary on the day of the sale. Normally the buyer must pay 10% of the sales price.
There are three types of earnest money contracts: confirmatory, penal and penitential. Penitential deposits are mostly used in contracts for the purchase and sale of real estate. But what does the earnest money contract guarantee? The seller has the possibility to withdraw from the contract of sale, if the buyer withdraws, he will lose the amount he has paid, however, if the seller withdraws, he will have to pay the buyer the amount he paid in duplicate.
The contract shall contain as a minimum:
If you are a foreigner, you will need to obtain a NIE (Tax Identification Number) in order to purchase the property. The NIE will also be required to open a bank account. Our legal department will proceed to obtain the N.I.E. (Foreigners Identification Number) and the opening of the Spanish bank account.
Two options are available:
Either it is done through a bank in your country of residence, it is more than likely that the bank will not take your property as collateral in Spain. Therefore, you will need to have a property in your country of residence on which the bank can take collateral.
Either it is done through a Spanish bank, the mortgage loan that will be granted will not exceed 80% of the official appraised value of the property. It should have a contribution of 20-30%. It is important to note that Spanish banks only finance up to 80% of the value of the property (apart from notary fees) and can be up to 50% for non-residents. Therefore, it is advisable to ask for a simulation in the banks to obtain the different offers and opt for the one that offers the best conditions.
Please note that if you wish to obtain a loan in a Spanish bank, we can accompany you and put you in contact with partner banks.
It should be known that the Spanish notary does not have the same functions as in other countries and occupies a less important place in the process of acquiring a property.
Indeed, the latter does not make any so-called “notarial” investigation, its role will be only to authenticate the signatures, the financial regulation between the two parties as well as the terms of the sale agreement.
The role of our agency will be to “replace” the notary during the entire purchase process and will perform numerous checks to ensure your purchase is 100% secure.
The purchase and sale of the property is formalized with the signature before a notary; first, of the mortgage, if any, and then of the public deed of the property. Therefore, the banking party is brought together, if a mortgage is signed; the notary, the buyer, the seller and the real estate professional.
The notary will verify that payment has been made to the seller.
Then it will be necessary to present the deed at the Land Registry to notify the change of ownership, it is not an obligatory act but it is convenient since the owner will be legally protected.
On the day of signing the deed, you will have to pay the outstanding balance and pay various taxes amounting to about 12% of the value of your property: 10% VAT (ITP), registration fees, and miscellaneous expenses (notary, stamp duty…).
If you do not wish or are unable to be present on the day of the event, you may draft a power of attorney authorizing our agency to represent you and sign on your behalf.
Subsequently, the notarial deed must be registered in the land registry to confirm the change of ownership. The final act will then be obtained within 3 to 4 months.
At Emporda Immo, we don’t just sell you a property, we accompany you to make you feel good afterwards.
After your purchase, in addition to activating and/or changing water, gas and electricity meters, we offer you free assistance such as the subscription of insurance contracts, legal advice…
We can help you find the best solution for your project.
They have seen that buying a property in Spain is a simple process if you know the key steps.
It is essential to surround yourself with people you trust who can advise you and accompany you throughout the entire purchasing process. At Vivre à Valence, we offer you a French-speaking support throughout your project: from obtaining the NIE to the signature at the notary and the payment of taxes.
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