Guide to buying a house in Spain
Purchasing a home on the Costa Blanca in Spain is an exciting step! The team at NewLifePropertySpain can guide you through every stage of the process. The team at NewLifePropertySpain all live locally in Spain and have done so for many years, we are here to make the process smooth and pain-free, so you can simply look forward to living your life in the Sun.
1. Decide how much you want to pay for a property
Prior to starting your search for a property in Spain, you will need to decide on your target budget. If you are purchasing a property using non-Euro funds you will need to talk to a currency exchange company to see how much your budget will be in Euros. (https://www.newlifepropertyspain.com/currency/)
You also need to factor in the purchasing costs in the Alicante Province, approx 12% of the purchase price. (This figure is for guidance only and can change depending on circumstances)
A typical purchase of a resale property can take between 8-12 weeks, from the point of making a successful offer to the day you get the keys to your new home.
2. Establish your Team
New Life Property Spain will help you from Day 1 to match you with your dream home in the sun, we have a dedicated Aftersales Team who are there to hold your hand every step of the way.
We can advise an Independent Lawyer to protect your interests, most offer the ability to undertake your requests under a power of attorney to reduce the number of times you need to visit Spain during the purchase process
3. Finding your Home in the sun
We work with you all way through the process, performing all the groundwork for your visit. We organise all your viewings with New Life Property Spain and should you wish us to also work as your property finder we will make arrangements to also see other Agents' properties as well.
Once you find the perfect property then discuss making an offer with your assigned Sales Representative, we will guide you on the expectations of the vendor and help you come to a price that is fair.
When an offer has been accepted then you will be required to sign a Reservation Agreement to secure the property and remove it from the market. The amount that is paid is dependent on the property price, as below
For properties less than €400,000 the reservation fee is €3,000
For properties in excess of €400,000 but less than €1,000,000 the reservation fee is €5,000.
For properties in excess of €1,000,000, the reservation fee is calculated at 1% of the purchase price
4. Signing the Sales Contract
When you have secured the property with the Reservation Agreement, then your legal representative will start to prepare a "Private Purchase Contract" (Contrato de Compraventa), which should be signed within 30 days of reserving the property, together with the payment of 10% of the total purchase price. Your Lawyer will, during the preparation of the Contract, perform all the necessary checks on the property to ensure there are no legal reasons why the purchase cannot go forward.
5. Day of Completion
The final stage of the purchase is undertaken in the office of a chosen Notary, who oversess thte signing of the Title Deeds (Escritura de Compraventa), by both the buyer and the seller. (or the legal representative, under a Power of Attorney)
Upon signing the Title Deeds the buyer will be required to pay the remaining funds, (less the 10% and the reservation fee), including the ITP transfer tax for resales, which equates to 10% of the cadastral value (Land Registry), you should allow a further 2% for Notary, Land Registry and Legal fees
Once your new deed is signed by all parties and ‘notarised’, you are now the legal owner of your property, your lawyer will register your deed at the local Land Registry office, on the same day as completion or as soon after as possible. They will also register you as the new property owner with the local council tax office, your utilities companies, and, if necessary, with your community of owners, according to the agreement you have with your Lawyer