Legal Procedures for Buying a Home in Spain: What You Can’t Overlook
If you are thinking of buying a property in Spain, these are the most important steps to follow:
- Registry Check: Verify the Property Status
One of the first steps you should take is to carry out a registry check, which is to request a simple note from the Land Registry, which will allow you to verify that the property is free of encumbrances, mortgages or liens. It will also confirm that the seller is the legal owner. This step is essential to avoid unpleasant surprises, such as outstanding debts that you could inherit if they are not settled before the sale.
- The Role of the Notary: Guarantee of Legality
The notary is in charge of drafting and authorising the public deed of sale, a document that formalises the agreement between the buyer and the seller. He also verifies that all parties involved comply with current legislation and that the documents presented are valid.
- Contracts: Understand the Differences
There are several types of contracts that you will face during the buying process, and it is essential to understand the differences between them:
- Reservation contract: This is a preliminary agreement that formalises the intention to purchase and usually includes an upfront payment (arras) that serves as a guarantee. If either party defaults, they may lose or receive financial compensation.
- Purchase contract: This is the final contract that details all the conditions of the transaction, such as the final price, the method of payment and the date of delivery of the property. It is advisable to have this contract reviewed by a lawyer specialising in real estate law to ensure that it protects your interests.
- Payment of Taxes: Don’t forget the ITP or VAT
Depending on whether you buy a new or second-hand property, you will have to pay different taxes. For new homes, VAT is applied, which is usually 10% on the price of the property. In the case of second-hand properties, you will have to pay Property Transfer Tax (ITP), the percentage of which varies between 6% and 10%, depending on the autonomous community.
At A&G Lawyers, we are specialists in real estate law and we accompany you through every step of the purchase of your home. From the registry check to the signing of the title deeds, our team ensures that everything is done correctly and smoothly. Contact us today and ensure a risk-free purchase!