Buying property in Spain differs greatly from doing so in the UK.
In Spain when two parties agree on a price the buyer must pay a deposit of 3000€. Once they have done this they sign a contract to state their intention to buy. This money is paid directly via bank transfer to the seller. The property then shows as reserved “Reservado”, this is similar to “sold subject to contract” in the UK. This payment reserves the property for a month. Once the month is up the buyer needs to pay a further amount to the seller to bring the total deposit up to 10% of the total purchase price.
Once done the clock is ticking, you are now “in contract” with a two months timescale to complete the sale. When both parties are ready to complete the estate agents for the seller, organise a Notary to complete the sale. The buyer needs to have the funds in place, either a mortgage offer or the cash in a Spanish bank account to provide a bank cheque, made payable to the seller. The cheque and ID are taken to the meeting with the Notary, where both parties sign, then the cheque and property keys are exchanged.
Other differences to note:
- The buyer pays no fees for the notary or searches – this is done by the seller.
- The estate agent works for both Seller and Buyer to complete the property sale.
- 3 months is the maximum time it can take to complete your purchase.
- 3 months is not long enough is you are funding your purchase with a property sale in the UK
- Make sure you have money for 10% deposit of your purchase.
- If you are buying with a mortgage, make sure this is in place first
- If you are purchasing from the sale of your UK property, leave as much time as possible before entering into a Spanish sale.