Purchase process

Below is a brief outline of the purchase process for each of our destinations, comprehensive information is available with our free, up to date guides. These do not in any way substitute professional legal advice, they do act as a comprehensive, wide – ranging guide to the process.

 

 

Purchasing properties in Spain

Thousands of British people have successfully invested in Spain; the process is straightforward, and with all matters legal, no short cuts or cost cutting when it comes to legal advice.
The process; Nota simple, (Legal description of the property), Mortgage or finance, closing and taxes. *TheNota simple informativo; this is supplied from the Property Registry (Registero de la Propiedad) this shows the property is free from debt, that it legally belongs to the developer/vendor and that the description of the property is correct. The Notary prepares the title deeds (Escritura), and registers the property. The associated costs are Spanish VAT at 8%, 1% registry costs, 1% legal fees and 1-2% in the event of a mortgage. So count on 11/12% on top of the property price.

We recommend that our clients employ an International lawyer with experience of purchasing Spanish property – or an English-speaking Spanish lawyer (Abogado). They make the necessary searches to ensure that the land belongs to the Vendor, is free of charges, and have the necessary planning and building permission and that the Contract is fair and legal. Once the transaction is completed they will arrange for the title deeds (Escritura) to be transferred into the purchaser’s name.

Be aware that in Spain the equivalent of VAT which is levied on property purchases was at 7% but INCREASED to 8% as of July 1st 2010.

Purchasing properties in Portugal

Contracto de Reserva (reservation contract) is a short contract where you pay a deposit (usually around €3,000 – which is taken into account with the sales price), this secures the property for between 2 to 4 weeks. Your lawyer gets to work on all the conveyance, when everything is in order you then sign a promissory contract. The checks your lawyer will undertake include: Land registry, debts on the property, that the seller is legally entitled to sell, guarantees, planning, construction, licenses and checks on the contract of sale
An offer to buy is formally drafted by your lawyer; you then create a legally binding document with the seller/developer.

The preliminary/ promissory purchase contract (Contracto Promessa de Compra e Venda) is your legally binding purchase agreement. This is followed by the contract of sale. You may opt to sign a Power of Attorney authorizing your lawyer to sign on your behalf, you may also require a tax number (again your lawyer can arrange this for you) The Notary will prepare the final contract of sale and title deed. Allow 6-7% of the purchase price for associated costs.