Thinking about buying?
A reputable lawyer
We make every effort to satisfy ourselves all paperwork is legal and in order before we market a property or arrange viewings with collaborating agents/developers but we always recommend you appoint a reputable lawyer whose responsibility it is to check all documentation is correct, collect taxes, arrange the notary appointment, transfer of title deeds, water and electricity contracts etc. We also strongly advise our buying clients to make a Spanish will as succession law in Spain is not the same as in the UK and other countries. We can make lawyer recommendations if required and introduce you personally.
Spanish NIE Number (numero de identificacion de extranjero)
This is a number issued to Foreign nationals for identification purposes and you cannot purchase a property without this number. Our recommended lawyers will obtain this number on your behalf if required.
Spanish Bank Account
Anybody purchasing a property in Spain must by law open a Spanish bank account. We can make bank recommendations if required and introduce you personally.
Generally Spanish banks are lending up to 60% of the purchase price to non-residents purchasing a resale property and we can introduce you to local banks which are offering these services subject to status. When purchasing with a Spanish mortgage there are set up fees and costs which as a guide can amount to 2-3% of the loan. We also suggest that prospective buyers requiring finance explore the possibility of raising funds in their own country.
Buying Costs and Transfer Tax
We advise you to allow about 11% on top of the purchase price to cover the 8% transfer tax in Spain on resale properties and your lawyer, land registry, notary fees etc (12-13% if purchasing with s Spanish mortgage).
Minimum Market Values
It is fairly common knowledge that in the past many property sales in Spain were completed using significant cash payments which nowadays doesn’t happen. This meant purchase price figures were recorded on the escritura (deeds) a lot lower than the actual purchase price in order to save taxes so town halls put a minimum market value system in place to ensure they received a fair amount of tax. Town halls still use this out of date system to calculate tax owing for resale properties and a reputable lawyer will explain the situation fully with regards to the tax due on your particular purchase.
Making an Offer
When you are ready we will put forward your offer to the vendor and negotiate on your behalf to secure a sale for both parties. When the price is agreed the buying process begins.
When your offer is accepted you will be required to make a 3,000€ non-refundable reservation deposit to take the property off the market. We will hold the deposit on your behalf whilst the purchase contract is prepared. At this time we will ask you to sign a simple sales agreement with Prime Property Murcia or the collaborating agent/developer.
Remaining 10% Deposit
Usually you have 28 days to pay the balance of the non-refundable 10% deposit. At this point a purchase contract is signed by both parties with a completion date or a completion “by” date and if a mortgage is required the contract will be subject to mortgage funds from the bank concerned.
The final balance is paid on completion in the notary and by the date agreed within the contract. A reputable lawyer will supply you with a breakdown of all your costs and explain how payments need to be made. Keys for the property will be handed to you at the notary.