Legal Advice Buying Property in Spain
Once you have chosen the property you wish to buy you should make immediate payment of a Reservation Deposit, thereby ensuring that the property is not sold to another purchaser. Now is the time to obtain the advice of a good English speaking Spanish lawyer. The best way to choose your lawyer is either by recommendation from a friend who has already bought property in Spain, or from your estate agent.
Using a lawyer is essential and is your guarantee that Spanish Legal requirements are met, that the property is registered to the vendors name and that it is free of any mortgages, charges, encumbrances, debts or other liabilities. Your lawyer will negotiate and discuss the purchase terms with the sellers lawyer. The terms should not be limited solely to price but should cover in detail all your requirements like the completion date, the form of payment etc.
What tasks does your lawyer perform?
The lawyer:
- Examines the vendor's private contract and ensures that the price and other terms are in accordance with what has been agreed and that they are normal business conditions.
- Ensures that the vendor is entitled to sell the property and that the property is legally constructed and correctly registered at the Land Registry.
- Ensures that there are no liens and charges on the property and that all due taxes and rates, etc are paid up to the date of purchase.
- Ensures that any possible mortgage debt of the vendor has been paid.
- Ensures that the purchase payment will not be released to the vendor before certified that the buyer can receive a clean deed of conveyance for the property.
- Prepares a statement of completion, arranges for the utility contracts (water, electricity, telephone etc) to be registered in the buyers name.
- Draws up all necessary documents for the Spanish authorities.
- Advises you on financial and tax-related questions and is your key to a secure deal.
How much does legal advice cost?
The lawyers fee may vary depending on the total time needed for the specific purchase. As a rule this cost amounts to approximately 1% (+ VAT) of the purchase price.