The buying process
We work solely for you.
That means we will accompany you through the process, dealing with issues regarding the purchase itself, as well as logistics, travel and accommodation, removals from the UK or Ireland to Spain etc. Let us guide you along the path to a new way of life.
First we look for various houses that might interest your, all allong the spanish coast. Why not follow us to Spain? If you wish to, we will organize the whole trip; providing you with a package in order to view properties, and even begin the legal purchase process.
THE LEGAL PURCHASE PROCESS
Having found your ideal property on the Spanish coast and made the decision to move forward with the purchase, the next step would be for Elisa Overseas Property Consultancy´s lawyers to draw up a ‘Reservation Contract’; a standard procedure in Spain to reserve a property for a specified period of time. We will update all your legal papers(NIE, VISA, Bank account….) while your lawyer conducts due diligence.
WHAT IS A RESERVATION CONTRACT?
The reservation contract sets out the basic terms and conditions of the purchase and, when approved, is signed by both the buyer and the vendor. This temporary reservation document includes:
• The full name of the buyer and vendor
• The price of the property
• The property address
• The date envisaged for the signing of a private purchase contract
• Other special conditions
• The amount of deposit required to reserve the property.
A deposit of between €3,000 and €10,000 will secure the property while due diligence is being carried out. This deposit can be paid in several ways. It can be held in the Elisa Overseas Property Consultancy company client account or with a lawyer of your choice. The deposit serves to reserve the property while your chosen lawyer conducts due diligence and you may also want to arrange a mortgage at this time. This reservation deposit is fully refundable should your lawyer discover any legal impediments pertaining to the said property. Should you continue with your purchase after due diligence, the deposit will be used towards the purchase price.
WHAT HAPPENS NEXT?
Once your lawyer has conducted a full and thorough due diligence, they will inform you of their findings and discuss moving on to a private purchase contract if applicable.
WHAT IS A PRIVATE PURCHASE CONTRACT?
A private purchase contract is a contract between the buyer and the seller, again typically setting out the terms and conditions of the contract.
The contract will be prepared by your lawyer and will contain:
• A legal declaration from the seller that he/she is in a legal position to sell the property.
• The exact address and dimensions of the property, and its features as set out in the Referencia Catastral; the Government registration of properties.
• The completion date, and arrangements for the handover of keys etc.
• The terms and conditions as agreed by the buyer and the seller.
The buying costs in Spain vary from 10% to 13.5% of the purchase price. This can be broken down as follows:
10% IVA (VAT) on new properties, or 8% to 10% IVA (VAT) on re-sales depending on the price category and the Spanish area.
1%Notary fee, 1% Legal fees, 1.5% Stamp Duty tax (A tax charged to make all documents legally effective)
If you should require a mortgage, you should calculate an average of 1-1.5% for the set up fee of a mortgage with a bank.