10 simple steps for buying a property in Spain

As a developer Gamma Monarch Villas have been planning, constructing and promoting on the Costa Blanca for over 30 years. They have recently launched a property Buyers Guide to help you with the process. http://www.gamavillas.com/

(PRWEB) October 2, 2005 -- Buying a property in Spain is, like everything, simple when you know how!

It is important to ensure you have all the proper paperwork in place. All Gama associated Agents are experts in their field and this is important as the buying process is different when buying an inland resale property to buying an off-plan new development and can vary slightly from developer to developer.

http://www.gamavillas.com/howtofindaninvetment.htm

Using an Agent

A good agent is essential when you buy a property in Spain. Gama can provide you with a selection of properties for sale from their database and can recommend a good lawyer (who speaks your language fluently) to take you through all the legalities some of which are different to those in the UK or other countries. If they do not have your ideal property they will do their best to find it for you using their network of offices.

Making an Offer

When you have decided on a property you will need to make a verbal offer through the agent which will need to be accepted by the vendor. When he has done this negotiations will proceed. At this stage a lawyer should be appointed by you to formalise the agreement.
http://www.gamavillas.com/legalandfinancial.htm

Appointing a Lawyer

It is wise to appoint a lawyer who is fluent in your language so you understand properly all the legalities and exactly what is happening. Gama agents will be able to recommend a good lawyer who can carry out the necessary checks on the property in Spain and complete the legal requirements of the sale. The first check is usually to obtain from the property registry a Nota Simple" which will identify the registered owner and provide details of mortgages or embargos on the property. You should obtain from the seller receipts for payment of IBI (impuestos sobre bienes inmuebles) the annual real estate tax. These will show the Valor Catastral" the assessed value of the property upon which your property income tax will be based. When buying a new property ask to see the Declaracion de Obra Nueva" and the Declaracion de Alteracion de Bienes Naturaleza Urbana ".

Holding Deposit

After a price has been agreed and the Nota Simple" has been checked you will have to pay a small holding deposit to take the property off the market and reserve it until you can reach completion. In the case of a new property you will have to pay in stage payments which will be agreed with the builder before contracts are exchanged. Your Lawyer will prepare a formal offer and agreement contract for this purpose.

Exchange Private Contracts

The exchange of private contracts or the signing of an option to buy would normally take place about two weeks after the formal acceptance of an offer, by which time the lawyer would have completed his searches. The contract will set out all the agreed terms and a date for completion will be fixed. It is usual for the buyer to pay 10% deposit at this stage, which is non-refundable.

Complete at the Notary

On the arranged day (completion day), the buyer and seller (or their authorized representatives) will meet at the office of the notary to sign the Escitura de Compraventa" (the Title Deed). This document states that the property is sold free of charges, mortgages and tenants. The Notary does not check the terms of the deed but merely certifies that the parties have agreed them. At this point the balance of payment is made and possession passes to the buyer. Your lawyer will arrange payment of taxes and fees and register your title deed at the property registry. This should be done promptly. Do not forget to have the property insured!

The Costs
There are three fees to be paid.
1. Lawyers fee - Usually about 1% of the purchase price plus 16% IVA
2. Notary fees and the property registry fees - Also there are two taxes, transfer tax (ITP) and Plus valia". Notary Fees Fixed by law and normally in the range of 300€ to 900€
3. Registry Fees - Approximately 40% of the notary fees Transfer Tax 6% of the purchase price, but when buying from a developer this is replaced by 7% IVA plus 0.5% stamp duty Plus Valia (Local municipal tax)

Who Pays What

It is normal practice for the buyer to pay the above fees and taxes with the possible exception of the Plus Valia" but everything is negotiable and should be stipulated in the contracts. Capital Gains Tax and estate agents fees are the responsibility of the Vendor. You will now have the keys to your own Spanish Property!

Financial Services

After finding the property of your dreams, Gama agents can arrange for you to meet an independent mortgage adviser who deals with both local and international banks and can offer very competitive terms and rates.

For more information and investment opportunities in Costa Blanca, Costa Calida and other parts of Spain visit http://www.gamavillas.com/

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