We've Found You Your Dream Home... What Are The Next Steps?
Any process involving such a significant investment as a property is invariably going to seem daunting at first. That is why, at VIVA, we not only help you find your new home but also guide you through the whole property buying process – from paying a deposit to turning the key in the door. And beyond, if required – for example, holiday rentals.
Reserving the Property
The first step, to ensure the listed property is taken off the market, is to complete a temporary reservation contract and pay a deposit. This is normally €6,000 – for both resales and new builds – and can be paid by bank transfer or credit card, whichever is the most convenient method for you. The deposit will be held in either our escrow account or by your lawyer, and is fully refundable in the event of any legal issues being found during due diligence..
Signed by both you and the vendor, the reservation contract includes basic terms and conditions, and (in addition to the deposit amount) key details related to the purchase:
- Precise property address
- Full names of buyer and vendor
- Agreed price
- Estimated signing date for Private Purchase Contract (PPC)
- Estimated signing date for title deeds
- Other circumstances (for example, furniture included or finance)
Signing the Private Purchase Contract
As soon as your lawyer has completed due diligence, and is satisfied all legal details are correct, a PPC will be prepared and signed by you, your lawyer and the vendor. Again, this will include the terms and conditions of the purchase, and the respective dates for signing the title deeds, paying the balance and receiving the keys.
At the same time, you will then be required to pay a percentage of the purchase price, usually 10%, although it could be staggered up to 30% for a new development.
If you withdraw from the agreed purchase after signing the PPC, you will lose the amount paid. If, on the other hand, the vendor withdraws from the agreement, they will be required to pay you the amount paid plus an extra 10% by way of compensation.
Completion at the Notary
In order to inscribe the property into the land registry and legally transfer ownership of the asset, you must sign the title deeds – called escritura pública in Spanish – before a notary. It is only after this point that you can complete the buying process and pick up the keys to your dream home abroad.
In a recent change to legislation (June 2019), you (or your power of attorney) will have to go to the notary twice; once at least one day before the title deed signing to be explained the implications of legal completion, and then again to sign on the dotted line.
As you might predict, this final phase also has associated costs, including fees for the notary, administration, legal representation, land registry inscription and a transfer tax. But once this bureaucracy and payment of the corresponding fees is out of the way, you can pick up the keys to your dream property and start enjoying your Spanish home.
You will leave the notary with a document that serves as a temporary copy of the title deeds – the official lodging of said document can take up to a month – so you can verify that you’re the new home owner and you can go ahead set up your utility bills like water and electricity, for instance.