Buying Guide for Property In Spain from Spanish Property Sales

Once you have decided to buy a property in the Costa Blanca North, you should follow the Golden Rule!

  1. Seek out a reputable independent property finder to steer you through the maze of estate agents!

  Please read this before you continue!  

With our help we can search for your ideal villa, apartment or other property through a number of reputable estate agents, organise the property viewings and have the best legal representation in place for you should you decide to purchase a villa or apartment in Moraira or Javea.
 
You should ask for details of the outgoing costs payable every year to maintain the property, namely the Annual Real Estate Tax (IBI), the community fees, the charges for rubbish collection.
 
When you have made a decision as to the property you want to buy, you will be asked to make immediate payment of a reservation deposit, thereby ensuring that the property is not sold to another purchaser. You will then have a period of between 10 and 15 days to exchange contracts but, before doing so, you should seek proper legal advice.
 

Prevention is always better than cure.  From now on until and after completion of the purchase, the lawyer will take care and assist you in all the different steps involved in the transaction. There are many excellent English-speaking Spanish lawyers in Spain. Choosing the right lawyer is your guarantee that Spanish legal requirements are met, that the property is registered in the vendor's name and that it is free of any mortgages, charges, encumbrances, debts or other liabilities. Your lawyer will negotiate and discuss the purchase terms with the seller's lawyer. The terms should not be limited solely to price but should cover in detail all your requirements like the completion date, the form of payment...etc.

Once you have appointed your chosen law firm they will explain the procedure involved in buying in Spain and the associated costs. The next step after paying the reservation deposit is to examine and witness the terms of purchase in writing. At this stage the lawyers will draw up the private contract. It is customary to pay a deposit of ten per cent of the price on exchange of contracts, which is not normally refundable if the purchaser defaults. Conversely, if the vendor fails to perform his obligations, you will be entitled to rescind the contract and claim damages. Before your lawyer exchanges contracts, he will have completed his searches and investigations in respect of the property.
 
Finally, on the day fixed for completion your lawyer will go to the Notary Public to sign the title deed, making the final payment to the vendor who will simultaneously pass over possession of the property to you, handing you the keys. At this stage the sale is completed. Immediately after completion, the notary will fax details of the title deed to the local land registry to inform them of the identity of the new owner, to prevent the property being sold twice. In this way the notary and the Land Registry act together to protect and guarantee your interests. You will then have to pay the relevant taxes and have the original title deed submitted to the Land Registry for registration of your title. Your lawyer can also arrange for the transfer to your name of utilities and services such as water and electricity and organise their payment through a local bank.
 
The purchase of the property will involve the following expenses.
 

• Notary, who charges according to a fixed scale. His charges may range from € 340 for a property price of € 120.202 to € 601 for a property price of € 601.012
• Land Registry, as a rule of thumb, is 40% of what the notary charges.

• If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 7%.
• If you are buying a new property or a property in the course of construction from a promoter, developer or habitual trader, then you should pay VAT (IVA) at 7% plus Stamp Duty at 1%.
• The VAT (IVA) rate increases to 16% if you are purchasing plots of land, commercial premises
• Plusvalía is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few hundred euros to as much as several thousand euros on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practice for the parties to negotiate on who is to assume this liability.
• Finally, bear in mind that your lawyer will charge fees for his professional services normally between 1% and 2% of the price plus VAT (currently at 16%).

Whether you are looking for a Moraira villa for sale, Villa in Javea or other property in Costa Blanca North; Spanish Property Sales will assist you in finding your ideal villa in Moraira or Javea.

We have years of experience searching villas to rent with or without a pool for our clients in Moraira and Javea at the right price. We have a network of Moraira and Javea agents, helping us to find your perfect villa in Javea or Moraira or other property in Costa Blanca North.

The purchase procedure for resale explained!