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THE BUYING PROCESS
Once the suitable resale or development property has been found the follow steps should be taken.
For resale properties at reservation / negotiation stage:-
- 6,000 Euro deposit is paid
This will only be handed to the vendor once all negotiations have been concluded and statisfactory to both parties
The property is then taken out of the market whilst your Lawyer completes the necessary searches:-
- To ensure the title of the property is satisfactory
- The person selling the property is authorised to transfer itīs ownership
- Complete and thorough searches to ensure the property is free from any charges, mortgages and outstanding debts
Once all is satisfactory and the date is agreed by both parties for completion, the private purchase contract is signed and the deposit of 10% of the purchase price is paid to the vendor, less the 6,00 holding deposit. The contract then becomes a legal binding document.
Alternatively, it is possible to go straight from reservation deposit to completion within one month, subject to lawyer searches above.
Under Construction / Development
- 6,000 Euro reservation deposit is paid to Developer
Generally Developers do not negotiate on price unless you are purchasing multiple units
The deposit takes the property out of the market whilst your Lawyer completes the necessary searches. The developer normally allows upto one month.
- All Building Licences are in place and correct
- Ten year guarantee building insurance (similary to the English N.H.B.C.)
- Bank guarantees are in place to protect you money
Once all is satisfactory, the private purchase contact is signed according to the developers terms and conditions. Normally 30% of purchase price.
BUYING COSTS- Budget for 10 - 13% according to whether you intend to purchase with cash or take a mortgage. Breakdown as follows:-
- Transfer tax of 7% of the purchase price
- Notary fees: fixed by lawy and normally in the range of 300 - 900 Euros
- Registry fees: Approximately 40% of the notary fees
- Lawyers fees, usually 1% of the purchase price, plus 16% IVA (VAT)
- Mortgage set-up costs of approx 2 - 3 % of amount of loan
Should you decide you are wanting to take advantage of the low cost borrowing in Spain via a Mortgage, it is advisable to talk to a Spanish Mortgage advisor or bank prior to your viewing. This will give you a clear understanding of the potential monthly enable you assertain a true budget. This will avoid any disappointments later in the buying process.
Contact: Pauline@spanishselections.com
Tel: 0034 952 797 812
Mob: 0034 667 295 775
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