At a legal level, buying a property consists of a stipulated process and compliance with a series of requirements established by Spanish regulation. In this post we will see exactly that. Below you will find a brief summary of the process of buying a home in Spain : what are the steps to follow, the mandatory requirements, and what taxes we will find along the way.
First phase :
This phase of a more preliminary nature encompasses the control of the property, the prior agreement and the mortgage.
- Property errands. It mainly consists of reviewing the property, verifying its registration, owner/s, verifying details such as location and size, and ensuring that it is a debt-free property.
- Reservation and advance contract. Through this contract, both buyer and seller express their explicit intention for the sale to take place. This contract is called the Arras Contract in Spain. There is the realization of an initial payment.
- Mortgage. Here we are facing a long process, so it is advisable to start it as soon as possible. We must collect all the documents required by the bank, receive the approval for the mortgage, and sign the Deposit Agreement.
Second stage :
This second phase has to do with everything related to the transfer of ownership of services and various utilities, as well as its registration.
- In the event that a loan (mortgage) is granted, we will face the evaluation phase of the same. The bank receives the prior agreement, will send an appraiser to evaluate the property, and once the estimate has been established, the financial institution will sign the mortgage favorably.
- Closing. Here, the transfer of ownership is notarized. Both parties provide the requested documents (identification document, property title, payment, etc.); and finally the contract is signed and authorized by the notary.
- Record. Once it has been verified that the taxes have been paid, the profits are transferred. After registration in the Property Registry, the buyer becomes the definitive owner of the property.
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