Spain Plus More

Appointing a Spanish lawyer

The final steps to owning your home in the sun.

We can recommend several trusted lawyers who have many years experience in this market but if you decide to choose your own lawyer, be sure that they are qualified, experienced and importantly, fluent in both English and Spanish.

A lawyer will provide the legal expertise to guarantee that your property purchase meets all Spanish legal requirements and that the property is bought free of encumbrances, charges, liens or debt and is up to date in all its payments of local contributions and community charges, etc. If necessary, your lawyer can also assist the estate agent in negotiations with the owner.

Your lawyer will tell you in advance what their fee will be - in almost all cases, 1% of the purchase price.
It’s worth keeping in mind that if you use a lawyer from your home country it could substantially increase your legal costs and also delay the sales process. Local knowledge is very important and few overseas lawyers will have the necessary information.

Reserving a Property - Once there is a verbal agreement between parties, the next step will be to formalize the terms of the offer in writing. It is normal practice in Spain to include with the offer a reservation or holding deposit until the exchange of private contracts.  Paying the reservation deposit guarantees the property is taken off the market and is reserved for you at the agreed, fixed price. This initial reservation deposit will be held in your appointed lawyer's client account or directly with the developer.

Exchange of Contracts - Upon acceptance of the offer by the owner, the next step in the process is to exchange private contracts of sale or to sign an option to purchase. This normally takes place around 30 days after formal acceptance of the offer.
Your lawyer will have completed his searches and investigations of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts.
The private contract of sale or option will detail all the agreed terms of the offer and sale and set out the date for completion at the notary.
At this stage it is usual for the buyer to pay a thirty to fifty percent deposit of the purchase price which is non refundable. The amount of the reservation deposit is subtracted from this first instalment payment on the purchase price.
Developers must also pass over bank guarantees for monies held on account.

Initial Searches - Your lawyer will obtain a "Nota Simple" which will identify the registered owner and provide details of any mortgages or charges attached to the property. For new property they will check the "Declaracion de Obra Nueva" and the "Declaracion de Alteracion de Bienes Naturaleza Urbana".
They will also check with the Town Hall that the municipal rates (I.B.I.) are paid up to date and at the same time, they will find out the rateable value or "Valor Catastral" of the property.

Completion of Sale - A sale is formally completed in Spain when the public title deeds of purchase are signed in front of a notary, the final payment is made, and possession given to the buyer. On the assigned day, the buyer and the seller (or their authorised representatives) will attend the notary's office to sign the title deed 'Escritura de Compraventa'. 
At this point the payment of the remaining balance is made and possession passes to the buyer with the handing over of the keys. If you are taking a mortgage, there will be a Mortgage Deed to sign called an "Escritura de Hipoteca" in order that the bank will release the appropriate funds.

Registration - Once signed, the notary will fax a note of the title deeds to the local land registry. Your lawyer will also arrange payment of all the relevant transfer taxes, notary fees etc associated with the purchase of your property. They will also handle the formalities of registration of your title deeds. Final registration of the deed may take up to two months. 
Your lawyer will also arrange for utility accounts, such as water and electricity, to be transferred into your name.  They will also organize their payment through your bank account.

Congratulations!  you are now the proud owner of a home in Spain.