Are you in the process of coming to Spain (Valencia, Alicante, Murcia Almeria, Malaga…) to visit properties to buy ?. What do you have to do?
In relation to your future purchase in Spain, let us inform you with the steps to follow and share with you some information that can help you in the early stages of the process:
1.- FIND THE PROPERTY: For this, we always recommend to contact a reputed real estate agent. The function of the agent in the Spanish market is very important, so, it is essential that you choose reputed and well-known companies only.
Once your agent has informed you about the different options and properties, and you decided to come to Spain in order to visit properties with your agency, you have to concentrate your efforts to find the right property. The one which fulfils your expectation.
2.- CONFIRM PRICE AND COMMERCIAL POINTS: Then, you must negotiate and confirm with your agent, or with the vendor, the price, and the rest of commercial points: like furniture, schedule of payments, time to complete, etc.
3.- OPEN A BANK ACCOUNT: Opening a Spanish bank account in Spain is compulsory, and your personal presence in the bank is obligatory!. So, make the best use of your visit to Spain to visit a Bank to start the process for opening a bank account. Click here to know more about why opening a bank account in Spain in purchase process.
4.- NIE: If possible, apply for NIE!. If you have not enough time, you may provide your lawyer with a Power of Attorney so he can obtain the NIE for you later, or you can alseo apply for the NIE on your return in any of the Spanish Consulates of your country.
5.- And, then, the most important: CONTACT YOUR LAWYER!. Take care you contract a specialized lawyer in real estate, and in construction. Ask credentials, and study your layer in social media, ask for references, and confirm that is an officially registered lawyer. Click here to check how to know if my lawyer is legally registered in Spain.
6.- DO NOT PAY ANYTHING. DO NOT SIGN ANYTHING!: You should not sign anything or pay anything without the previous advice or authorisation from your lawyer/agent.
7.- ASK YOUR LAWYER/AGENT PREPARING THE RESERVATION CONTRACT: A professional lawyer will contact your agent in order to formsalise the reservation contract, with the inclusion of all the necessary provisions to protect your position as buyer.
Your lawyer will ask the agent to be provided with the essential documents to prepare the reservation contract. This is very important, because, previously to sign or to pay the deposit, it must be checked essential points as, for example, that sellers are the right and legal owners of the property, and that the property is duly registered in the land registry and cadastre, etc.
Your lawyer must then organize the signing of reservation contract with the agents/vendors and yourself.
8.- ADAPT THE RESERVATION CONTRACT TO YOUR PARTICULAR SITUATION: Specialized lawyers will consider then particulate circumstances of your case, and to include in the contract whatever conditions to adapt it to your particular situation as, for example, the way of payment, date for completion, etc.
9.- CONSIDER SEARCHES TIME: Once the reservation contract is signed, and the required reservation fee is paid to the agent, then, it is essential to make the legal and administrative searches on the property. These legal searches use to take some time, due to the fact that in many occasions the owners have not all the property documents in place, or they are expired, so, your lawyer is forced to obtain them from the Spanish administration. In other cases, when buyers request from Bank credits or mortgages, etc., it is also recommended to plan some time to get credit/mortgage approval.
10.- PROVIDE YOUR LAWYER WITH A POWER OF ATTORNEY (POA): While you are in Spain, ask your lawyer to arrange Power of Attorney in any of the local notaries in Spain. A notarised POA will give your lawyer enough faculties to complete the necessary steps of the process in Spain (as the bank account, NIE, etc), avoiding you unnecessary trips to Spain.
Also, a in case you provided a POA to your lawyer, he will be always ready in Spain to represent you in case you cannot come to Spain for whatever reason.
So, we recommend to include a minimum time of 2-4 weeks in the reservation contract, in order to give you and your lawyer time enough to complete the proper legal searches, and others like surveys, finance, etc.
10.- STANDARD CONDITIONS ON RESERVATION CONTRACTS IN SPAIN:
Normally payment schedule on standard purchase/reservation contracts is:
- Reservation fee
- 10-20% of the price payment 2-4 weeks later, ALWAYS THAT SEARCHES ARE COMPLETE!.
- The rest of the price in 8-12 weeks, always that result of searches are satisfactory.
During your visit to Spain, you must do the following:
- Find and visit the properties with a reputed, recognised and specialized agent of your trust
- Open a bank account in a Spanish bank.
- Get the NIE, if possible, if not, the NIE can be achieved comfortably in one of the Spanish Consulate in your country.
- Arrange a POA to your lawyer: In case no time to open the bank account or to deal with the NIE, ask your lawyer to prepare a power of attorney in any of the local notaries, and your lawyer will open the bank account, and obtain the NIE on your name.
And, once you have chosen the property you like…..