LEGAL ADVISE
REAL ESTATE PURCHASE
 
At the time of purchasing real estate in Spain you need to bear several things in mind. You will naturally gather as much information as possible possibly from books, on the internet and maybe even talking to friends that have already purchased. However there can be no substitute for expert knowledge and we at MENGEL&PARTNERS can enable you to proceed with you’re purchase without you having to be worry about the usual daunting prospect of dealing all that complex paperwork. MENGEL&PARTNERS will ensure that your transaction is worry free. But nevertheless we will explain clearly to you in the following text the typical stages in the purchase of a property in Spain.

1.) FIND A PROPERTY.  We listen to you carefully and access your requirements as you explain to us the type of property you desire.  Afterwards we will show you only the properties really meet your needs.  In this way we will not waste your time viewing properties which are not of interest to you.

2.) CHECK THE PROPERTY. The property that you choose will be thoroughly checked  by our staff to avoid unexpected complications. We will confirm that plans and the size of the property are as stated. We will organize a complete search of all the paper work related to the property at the land registry, covering current ownership, any outstanding debts that can sometimes turn up unexpectedly, and inform you of all the expenses that you can expect after the purchase of your home, such as, yearly taxes, community fees, town hall charges for refuse collection, water etc. 

3.) RESERVE CONTRACT.  After you have chosen your new home, we will sign a reserve contract at our office with the owner of the property. This is an important stage of the transaction, usually requiring a deposit of 10% of the purchase price for reservation. Thereafter the buyer is obliged to proceed with the purchase of the property and respecting the conditions stated within the contract within a certain period of time, usually 30 days from signing the pre-contract. The buyer will loose the deposit if they pull out of the purchase at this stage. However it’s not all in the sellers favour because if the vendor withdraws for any reason, for instance to sell the property to another party at an improved offer, he is required to pay double the amount of the deposit to the buyer for breaking the pre-contract agreement.

4.) REGISTRATION AT THE LAND REGISTRY. The final contract will be signed at the notary. At the same time you pay the balance of the purchase price and the property will be registered on your name at the land registry. Now you are the legal owner of your property.

5.) OTHER EXPENSES AND TAXES. The purchase taxes depend on the type of real estate.  For pre-owned houses or apartments and plots the property tax is 7%. For new developments you are required to pay a tax of 7% and a town hall tax of 0.5%. This percentage is always calculated from the value which is shown at the land registry paper of the property (the ESCRITURA).  In addition to the aforementioned taxes you can allow for an additional expenditure of 2% for the notary and lawyer bills, electricity and water changes and town hall taxes for registration.