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Honest advice from a reputable estate agent |
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Rough guide to procedure in buying a property
SEÑAL This is a payment of up to 6,000 euros paid to the vendor, which basically gives the sign that you are serious about purchasing the property and you wish the vendor to stop arranging appointments for other estate agents and private clients from viewing it. The transaction consists of a written statement laying down the facts of the payment and is signed by both parties including any witnesses that are chosen. If either party redraws from the SEÑAL then the monies are paid back in full to the party concerned, but please note that not in all cases. It is worth noting that at this stage the property is not guaranteed to be yours, but it gives a clear indication that you are serious. The SEÑAL of course is deducted from the final amount to be paid for the property.
Obtaining your NIE The most important single piece of documentation that is needed, because everything below cannot happen until you have this number, its a bit like your National insurance number back in England, its basically to stop money laundering among other things. This can be applied for in Cadiz and is very very straight forward. It takes about 4 days and can be collected by a nominated person on the day of application, in case you have had to fly back. You are given an official document that is proof that you have applied and are awaiting the number to be allocated. This is enough normally for you to open a bank account and draft up a COMPRA VENTA
COMPRA VENTA This is a payment that sets the purchase price of the property in question into stone, and issues that you wish to be known can be written into the COMPRA VENTA, such as agreed dates of completion, when you want the vendor out, the inventory of fixture and fitting, so on and so on. It is worth noting that your lawyer should have been contacted prior to this stage and would have drawn up this COMPRA VENTA for you. If you are buying off a Spanish person then the COMPRA VENTA should be in both languages, don’t let any lawyer tell you other wise. The percentage of payment is normally 10% of the agreed purchase price. The SEÑAL amount paid can be deducted off this figure if you wish, so that it’s not such a large chunk. A small tip that is worth noting, if you are applying for a mortgage then make sure that it is written in the COMPRA VENTA that if the mortgage is not obtained for any reason then the full amount is paid back to you. It’s a good little safety net. This document is very clear and states that if the vendor pulls out for any reasons not stated on the COMPRA VENTA then he has to pay you twice the amount paid to him. If you pull out for reasons other than stated on the COMPRA VENTA then you lose your deposit. I personally think this document is more important than the final contract. ESCRITURA (Deeds) The final straight and probably the most bizarre event, the date of the signing of the ESCRITURA would have been agreed in the COMPRA VENTA you will be sitting in front of the Nortario who will over view the agreed signing of the document. Other people who will be present is a representative of the bank (If the vendor had a mortgage on the property).Your lawyer, yourself, maybe their lawyer and a representative from the estate agent involved. It is worth noting that whichever Lawyer you choose to act on your behalf, they normally like to arrange the final signing at a notary that is familiar to them, so if the Notario picks up anything that is incorrect they can normally get it changed quickly without interruption to the proceedings. Much money is exchanged either by cash method or by bank transfer and can be a little unsettling but at the end of the proceeding you are handed the keys and the property is YOURS.
Important documents and brief explanation Nota simple Because any debts relating to the persons concerned who own the property, stay with the property this document is very very important. Your lawyer will source an up to date NOTA SIMPLE from the local town hall and costs about 9 euros. What it also does is show any bad debt, outstanding council charges to be paid and other secured loans such as loan extension, it also shows if the property is in the town hall registry etc etc. Escritura (Deeds) Pretty straight forward document, states who owns the property size of land size of construction etc etc. .Any additional extensions or changes to the house with have documents attached to this. This document at the final signing will show you names and transfer of ownership to you. Copy of the valid IBI Proof of payment of annual rates, again this is something that you lawyer will retrieve
General points There is also other documentation that may be applicable in certain cases, and will be brought to your attention by your elected lawyer. It would be very advisable to choose a lawyer that speaks clear English as he will be asked to translate to you on the notary final signing. I would advise this to be very important. I have tried to explain the outlining procedure of what happens when you buy a house here in Spain. Of course every situation is different with different requests and requirements. I do not and will not be held responsible for any errors that may incur of misunderstanding of the explanation given above.
W.M.SANDOW  Date 2007
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