The Process of Buying a Property in Spain

The Process of Buying a Property in Spain

In Spain, it’s extremely important to apply for a Spanish registration number (NIE number) when buying a property, in order to open a bank account and, if necessary, to apply for a mortgage. MNM CostaBlanca can take care of this for you.

If the parties agree on the conditions for purchasing a property, the process is as follows:?

• Drawing up and signing of the reservation agreement.
• Drafting and signing of the private purchase-sale agreement in the Spanish language and in the languages of the sellers and purchasers.
• Preparation and signing of the public deed by the notary and registration of the purchase in the land register and property register.

MNM CostaBlanca draws up a reservation agreement that is valid for 21 days. This agreement includes the following:

• Identification of the selling and purchasing party.
• Identification and description of the object.
• Final price agreements between the purchasing and selling party.?
• Indication of whether the property is being sold furnished or unfurnished.
• Confirmation from both parties that the transfer is free of charge.
• Ratification of the reservation agreement is done by payment of the usual €3.000,- by credit card or bank transfer.
• After signing the reservation agreement, the property is taken off the market and reserved for the purchasing party.
• The reservation agreement shall be drawn up in Spanish and include a translation into the language of the purchasing party.?

During the period of 21 days pursuant to signing the reservation agreement, MNM CostaBlanca draws up the final private purchase-sale agreement that will be submitted to the selling and purchasing party for signing. During said period, MNM CostaBlanca will carry out an extensive check based on certificates of the property register, land register and tax authorities on any debts or charges that are resting on the property, the correct description of the property in the register and land register and so on; this to not only declare but also document the burden-free status of the property, already at the signing of the agreement.?

This private purchase-sale agreement contains the following provisions:?

• A precise identification of the property with a summary of the exact land area and buildings.
• The correct date of the notarial transfer of the property.
• The final payment method.
• A list of additional costs.
• Penalty clauses in the event of an incorrect execution of the agreement.
• As precise a list as possible of the movable objects (furniture, etcetera) included in the price.
• Upon signing the private purchase-sale agreement, the purchaser is required to make payment of (generally) 10% of the agreed price, which is recognised by Spanish law in real estate transactions under the term ‘arras penitenciales’.?
• The purchase-sale agreement is drawn up in the Spanish language and includes a translation into the language of the purchaser and the seller.?

In view of the agreed date of the notarial transfer, the public purchase deed will be prepared by the appointed notary. MNM CostaBlanca will deliver all the necessary documentation to the notary, and in addition, the notary will perform their own checks independent of the checks performed by MNM CostaBlanca, using certificates from the property register, land register and tax office, which confirm the tax-free status of the property and become part of the deed. MNM CostaBlanca accompanies the parties to the execution of this deed and takes care of the verbal translation of the deed into your own language. After signing the public deed, the following processing is conducted: registration of the property at the land registry and the registration of the real estate in the name of the purchasing party at the property register. In addition, in the days following the execution of the deed, all contracts for utilities, such as gas, water and electricity will be registered in the name of the purchasing party.?

We also communicate with the parties involved regarding, for example, the possible takeover of the existing telephone line, alarm contract, maintenance of the pool/garden, cleaning staff or the takeover of other practical matters.?

MNM CostaBlanca's ultimate goal is to help clients in making a carefree purchase, both in the real estate legal field and with all practical matters that arise during a purchase. MNM CostaBlanca makes agreements with the selling party with regard to the estate agent's fee for the sale; the purchasing party pays a one-off fee of €750,- including VAT for the services of MNM CostaBlanca.?

What is a ¨gestor¨ and why do you need one?

A gestor is a specialist in Spain who can assist you in all legal and fiscal matters that arise when becoming the owner of a property in Spain. MNM CostaBlanca accompanies you during this entire purchase process. We take care of the applications for the required NIE numbers, the notifications of the real estate taxes and waste taxes to the relevant authorities and the settlement of the plusvalia tax (for account of the selling party).?

Do you need a gestor? We recommend using the services of a gestor for the annual tax matters that need to be conducted in Spain from the year after the purchase of your property. Of course MNM CostaBlanca can recommend a suitable gestor, who also speaks your own language, from our network which we’ve built up over years of experience in the regional real estate market in the North of the Costa Blanca.?

Conclusion

MNM CostaBlanca is your one-stop solution for purchasing property in Spain. From the discussions with the parties involved to all the administrative tasks in the purchase process that a "gestor" would do, you can rely on the expertise and reputation of MNM CostaBlanca.

With MNM CostaBlanca you can focus completely on choosing the most suitable property, the dream house on the Costa Blanca North that really meets your wishes. Trust us with your dreams... it is the direct route to opening the doors of your own little paradise at the Costa Blanca North, where you will live the life. We are your expert partner when it comes to purchasing a home in the Costa Blanca North, Spain.