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Property Purchase in Spain

Pior proceedings: Private Purchase/Sale Contract

When purchasing a property in Spain it is frequent that before the signing of the public purchase/sale deeds before a notary public, a private purchase/sale contract is drawn up. Although it is not obligatory to do so, a private purchase contract is signed in practically every case.

Spanish legislation accepts these contracts as totally valid, therefore is you sign such a document you shall legally bind your self to the contents of the contract and should follow all clauses that the contract contains, always and when they are according to Spanish Law. This iswhy it is so important to get advice from our lawyers before signing a private document of this kind. Our lawyers shall duly inform you of the contents of the afore mentioned document, shall resolve all queries that may arise and even advise you not to sign if they are not totally convinced that the contract is not detrimental for you.

We can point some questions that you should take in to account before signing the private purchase contract:

  1. Signatura of the vendor party & sufficient power: there is no problem with this when the contract is signed between the client and a promoter as normally the administrator or holder of power of attorney shall on behalf of the company, but when it comes to a sale/purchase between owners, heirs, etc all parties shall need to sign the contract unless power of attorney has been granted that gives sufficient power in order to sign a private purchase contract on behalf of another, such could be the case of a spouses, it is quite common for one spouse to give power of attorney to the husband or wife in order to deal with the signing of the sale/purchase contract, If this should be the case then we should make reference to the power of attorney in the contract and show the document to the vendors/purchasers. In the case that the vendors should be heirs to the property on sale, our lawyers will check that all documentation with regards to the inheritance correspond to Spanish Legislation, thus, we recommend that you consult our lawyers if you are not totally sure about signing or have any queries at all.
  2. Charges upon the property: it is fundamental that before purchasing a property in Spain that you check for any possible charges against it. It necessary that the lawyers confirm via a certificate from the land registry "nota Simple" that there are no charges, liens or encumbrances against the property.
  3. Property owner community quota and local rates: if the property is located in a property owner community, there shall be a monthly payment of the corresponding quota. Our firm shall confirm if all payments are up to date with the company that deals with the management of the property owners community, also they shall check that local rates are up to date, as this payment should be made every year from the fist of January of the year in Course.
  4. Price and Down Payment: on the afore mentioned contract we shall reflect the price of the sale/purchase and indicate the method of payment. On the other hand on occasions a down payment is agreed, and in the case that the sale/purchase deeds are not formalised the purchaser should lose the down payment, if the deeds have not been formalise due to fault of the vendor the down payment shall be reimbursed by duplicate.
  5. Expenses entailed in the sale/purchase: these expenses shall be tax upon the incremented value of the land "Plusvalía", public purchase sale deeds, registry fees, tax.

If no agreement has been made with regards to expenses, these shall be paid as per the Law, the vendor party shall pay the Plusvalia and the purchasing party shall pay for the title deeds, inscription of the deeds at the land registry and tax derived from the transaction.

Choice of Notary and Public Deeds

In order to formalise public deeds it is necessary to go to a notary office. Public deeds are necessary in order to inscribe the purchase that the land registry office. Our lawyers shall accompany you to the corresponding notary office in order to check that all documentation prepared coincides with your wishes.

Proceedings After the Public Sale/Purchase Deeds

Once the purchase has been put in to effect our management department shall process the document, we will:

  • Pay the corresponding taxes to the pertinent authorities no later than 30 days alter the signing of the public deeds.
  • Presentation and inscription of the purchase at the corresponding land registry: we shall pass the notice to the corresponding land registry, once this has been done we shall present an authorised copy of the deeds within 10 days of the signing. Then the registry shall examine the documents and register them with a property number, page number, book number and volume number.
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