How to Buy Property in Spain..

Property:Real-Estate

It’s the dream of many people to own a sunny vacation home, or even better, to pack up and make a permanent move to an ideal location. What once seemed far out of reach is now increasingly common as more and more people are buying property in scenic, beautiful Spain.

What seems like an idyllic process, though, can quickly turn into a horrid nightmare if buyers are not careful. Buying, building or renovating property in Spain requires diligence on the part of the buyer to make sure all of the correct steps have been taken and all of the necessary paperwork has been properly completed.

Here are a few must-check items that you should verify before buying any property in Spain:

• Property deed – called the escritura publica, this is the seller’s deed to the property and verifies he/she is the rightful owner.

• Simple note – obtained from the local property registry, this document verifies that there are no other liens or mortgages against the property.

• Registration and description – check at the local Town Hall (Ayuntamiento) to ensure that the property is properly registered and that the property description is correct.

• Building permits – if you plan to build a new structure or renovate an existing structure, make sure the proper permits are all in place. Unlike many other places, it is your responsibility to obtain permits rather than depend on the building contractor to do so.

• Clear old bills – find out if there are any outstanding bills due on the property. Some common ones include utilities, community fees, and specialty fees on new properties and resale properties.

As with most real estate transactions, there are taxes and other fees associated with buying property in Spain. Some typical charges include fees for notary services and property registration as well as a transfer tax and a tax on the property’s increased value since the last time it was sold. There are no set rules about who pays which fees, but in general the buyer covers the items listed above while the seller pays the real estate agent’s commission. All together you should plan to pay costs roughly equivalent to 10% of the property’s value.

While these steps may seem intimidating, especially if you’re trying to move through them from another country, they are manageable if you do your homework and protect yourself at each benchmark along the way. By all means retain a lawyer to review all contracts and always insist that agreements be made in writing rather than verbally. This will protect you down the road if there are any disagreements later on in the sale process.

Jamos - www.spaingolfproperty.co.uk/