Purchasing in Spain
Do it right first time!
Ensure the estate agent you are using is Spanish Registered and a qualified Asesoria (qualified property consultant). Always ask this question before providing any personal information, to ensure you are covered by the Data Protection Act and that the agent you are using has carried out a course on this subject.
The Olive Tree Estate Agents is a qualified Asesoria and has provided the information below to assist you in the purchase of your dream home here in Spain. Here are a few simple steps:
• Legal Matters - The Olive Tree recommends that all clients appoint a registered, Spanish speaking Solicitor or Asesoria to act on their behalf for any legal matters. If you do not have one, we can point you in the direction of some local people who speak both English and Spanish.
• Wills - Inheritance laws are different here in Spain, compared to those of the UK, so we would strongly advise that you arrange a Spanish Will as soon as possible to cover your assets in this country. Contact us for further information.
• N.I.E. (Your Spanish Identification Number) - All foreigners are required, by law, to obtain their own N.I.E number if they wish to open a bank account, purchase a property or take out insurance. Spanish people have an equivalent but it is called a D.N.I number. Contact us for further information and/or assistance in obtaining this document.
• Bank Account - It is essential that you to open a bank account here in Spain in order to purchase a property. The Olive Tree can again help you with this.
• Deposit - Once The Olive Tree has helped you find your dream home or land, you will be required to pay a deposit; the amount is normally 10% of the purchase price. This deposit is usually kept on account until such time that a Solicitor/Asesoria confirms that all the paperwork is acceptable and legal to proceed with a sale. The deposit is 100% refundable if there are any discrepancies with the paperwork which cannot be resolved before the mutually agreed sale date.
• Purchase Contract - A purchase contract/agreement will be drawn up by your Solicitor/Asesoria. This document is important for both parties as it will contain information regarding the purchase price, deposit amount, completion date, any financial penalties if the purchase date is not met and any other relevant information that both parties may want to include. Once a deposit is taken and the agreement/contract is signed it is legally binding for both parties.
• Finance - Should you require a mortgage for your purchase this can be arranged in Spain or in the UK. We can help you through the entire Spanish application with a local bank.
• Deeds Transfer - Full payment must be received before the Escritura can be transferred into your name, which is always carried out at the Notary Office.
• Notary Fees - The Notary fee will differ from area to area, but your legal representative will provide you with an estimate.
• What is ITP? - Before the Land Registry can inscribe the Deeds (completion), you must pay the ITP (transfer tax). The ITP varies from region to region, but is usually between 8-10% of the declared purchase price. Your legal representative usually performs this task as part of their service.
• Registry Costs - The registry costs are based on the registered value of the property and the complexity of the Deeds, so will vary.
• Transferring Funds - We recommend that you use a currency exchange specialist. The Olive Tree can help you obtain the very best rates, if you require assistance in this area.
• Ownership - Taking ownership of your home or land is usually done once the full purchase price has been paid at the Notary Office and deeds signed over.
• Utilities - Once the property is yours, you will need to transfer the services into your name. It is important to set up a direct debit to ensure your bills are paid on time.
• Insuring you home - It is no different than the UK, once your take ownership the insurance becomes your responsibility.
Why use The Olive Tree
The Olive Tree Estate Agents is a qualified Asesoria, before dealing with any agent it is important to ensure they are Spanish Registered and are a qualified Asesoria (qualified property consultant).
Many properties and land remain on the market because they are OVERPRICED. This is mainly due to agents placing between 10% and 50% on top of the market value and then taking a percentage from the seller. The Olive Tree is completely transparent and the seller is made fully aware of our agency rate. No additional agency costs are added.
How quickly do I appear on your site?
You will be surprised how quickly your land or property appear on our website!
The Olive Tree will endeavour to visit you and your land or property as soon as possible after initial contact. It normally takes another 3-5 working days to create your individual property data sheet and to upload it onto our website and property portals. Once your property account is created we will make every effort to email them to our prospective purchasers the same day.
Will I sell in this current climate?
The Olive Tree cannot guarantee that someone will purchase your property; but with our competitive pricing, your property or land will be accurately priced giving you a better chance of selling. We also promise to do everything we can to promote your property and maintain the same level of enthusiasm throughout your time with us.
Rent to Buy
With finance becoming increasingly difficult to find, rent-to-buy is becoming a popular alternative for both sellers and buyers.
If you have a property you want to sell but can’t find a buyer or have a buyer who can’t get a mortgage then maybe rent-to-buy is the option you are looking for.
Rent-to-buy works in such a way that the buyer/tenant pays a substantial deposit and then pays a monthly payment, in the same way as a mortgage payment would be made. The buyer/tenant can complete the sale at any time during the length of the contract.
If the buyer/tenant decides they do not wish to complete the sale at the end of the contract term, they then forfeit all the monies paid and that is retained by the seller/owner.
All rent-to-buy contracts are drawn up by expert independent lawyers or a Spanish Asesoría, who will determine the property selling price to include all relevant costs.
All contracts are drawn up in the same way as a normal purchase contract and are registered with the notary and generally cost about the same as it would if you were buying or selling the property.
If you require further information please contact us by e-mail or by phone.
How much does it cost to sell my land or property with The Olive Tree?
The Olive Tree prides itself in charging competitive prices for its services. For further details please contact our Pinoso office.