Buyer´s guide

Practical Advices

1.-On what should we focus?

• Preservation of the property

  Focus on the structural integrity of the property (if it is reinforced, has been restored, or if it will need periodic maintenance inspections). The appearance of cracks or damp may suggest structural problems or problems in the foundations. Check to see if important work would need to be done.

• Fittings

  Insulation, water, gas (butane, natural gas, or mains supply), plumbing, electrical wiring and heating (if it is an electrical system, uses radiators, if it is central or individual for each room...).

• Comunidad de Propietarios: Community of Owners (the organization of ´management´ within many urbanizations or developments)

  Check to see if the Comunidad de Propietarios has planned any improvement work or important repairs and if so, if new property owners in the area will be liable for any costs. Two things may occur: that the money for the works will have to be paid up front before the work begins, or that a monthly payment will have to be paid in account of ´derramas´ (an amount proportional to income).

2. - Checks prior to the signing of the contract or to laying down the deposit

• Verify the Property Register

  Before buying, verify the certificate of the property on the Property Register and check that there are no conditions imposed on the property (is the seller the real owner, if there are charges upon the property or land, are there rental contracts…?). It is advisable to buy free of any previous obligations or where this is not possible, to ensure a complete understanding of any charges or obligations in question.

• Town Planning which may affect the property

  It is recommended that you check in the Town Council (Ayuntamiento) that there are no plans for the area which may affect your property – Planes Urbanisticos Proyectados -, as any regulations they may impose are strictly adhered to. For example, check that there are no limits on the plot such as any additional construction being forbidden, or that the house is not about to be expropriated.

• The title deed is authentic to the property

  The deed is the document which insures the property. This should always be handled by a notary and registered to the property. The seller should present the deed which corresponds with the property he wishes to sell. At the time of purchase, the notary will draw up a new deed of contract of sale between the buyer and the seller, in which exist all the clauses and conditions agreed upon (Price, method of payment etc...).

• Council Tax

  It is advisable to check that the latest council tax contribution has been paid, and the name on the receipt matches the current owner of the property.

3. - The formalization of the purchase

Once any necessary checks have been made and a decision taken to buy the property, it is important that you find a lawyer to help the process. Although not a legal requirement in Spain, this will avoid any misunderstandings in the process – or indeed with language. If at a later date you find yourself unable to be in the country for any meetings or signings, your lawyer too, under the power of Poder, can act and sign any documents on your behalf.

It is custom that the purchaser then lays down a deposit or down payment to the seller. The deposit or down payment will depend upon the final price of the property and binds both parties to complete the sale.

The contracts that are signed may vary slightly in wording and character as they are adapted to suit individuals needs, but all follow a basic model. If you are selling or buying through estate agents, as standard, the contract will include any fees. There are two types of contract to buy: confirmatorias and penitenciales.

Las Arras Confirmatorias involves the buyer paying the deposit, relative to the total value of the house, and the seller accepting the money as a promise to sell the property. From the moment the contract is signed, and the money delivered, both parties become bound to their promises to complete the sale.

Las Arras Penitenciales (las arras destimientos) are more commonly referred to when talking about deposits on property in Spain. It involves the paying of a sum of money (discounted from the final price of the house), which shows a willingness to buy. Regulated by Article 1454 del Codigo Civil,, either party may pull out of the sale. However, if the buyer pulls out his deposit is lost, and if the seller pulls out, he is charged to pay the would-be-buyer double the amount of the deposit paid.

The final contracts will be signed in front of a notary. This is a public official who is impartial to both the buyer and the seller, and is there to ensure that the contracts are signed properly and understood by both parties. He is not there to ensure the accuracy of any information in the contracts. As the buyer you have the choice of which notary to use.

To finalize the sale, the deeds are then sent to the property register to be checked and registered. It is worth remembering that if there are any problems with the signed contracts, the registry will not complete the process. Ask for an estritura publica a couple of months after the purchase to check that it has been completed.