We are specialist solicitors in the conveyance of property, and we have represented and advised many clients in the Murcia and Orihuela Costa areas.
We are specialist solicitors in the conveyance of property, and we have represented and advised many clients in the Murcia and Orihuela Costa areas. Therefore, we would like to explain the steps to safely concluding a property purchase, or sale. Please, keep reading if you are interested.
HOW TO SAFELY BUY A PROPERTY IN SPAIN
Murcia or Alicante airports will be your entry point to the beautiful areas of the Costa Blanca and Costa Cálida but how can you make sure the property you are buying in it is debt-free, fully licensed and in good shape?
Firstly, if your offer for a property is accepted by the seller, you will have to pay a deposit to secure the reservation and take it off the market. The deposit amount depends on the purchase price and the Real Estate agent involved, if you or the seller are using one. Therefore, the deposit may vary between 3.000 € to 5.000 € or be around 5% to 10% of the purchase price. There might be only one deposit payment or more. For example, 5.000 € as soon as the offer is accepted and another 10.000 € payment when the Private Purchase agreement is drafted by the Solicitors, or after a certain period.
The most important issue at this stage, is to check if the deposit is non-refundable or what the conditions are for the reservation of the property. If a Real Estate agent is involved in the sale, they will ask you to sign a deposit agreement, if there isn’t one we recommend to ask your Solicitor to draft it, for the safety of both parties. Otherwise, the sellers might change their mind and you will lose valuable time and travel expenses.
In addition, we will have to start with your NIE application (tax identification number) and decide whether you wish to grant a Power of Attorney to be represented during the whole process or not.
Second, as soon as the deposit agreement is signed and paid, we have to start with the checks on the property. In order to do so, we will request from the sellers’ Solicitor all the property paperwork. But, what do we have to check?
Encumbrances and easements
Minimum Market price, according to the Tax Agency
License: a copy might or might not be mandatory. For example, Murcia and Orihuela Costa are different in this regard.
Other minor items
If there are any debts on the property, we can ask the seller to pay or we can agree another solution with the other Solicitor. Other issues might arise but if there is good faith between the parties almost everything can be sorted out.
As mentioned in the point above, a Private Purchase agreement might be drafted and signed by the parties. It is not mandatory, but it is always a good idea, since at this stage we have more information about the property you are buying and it’s a good chance to raise and solve any issues.
Thirdly, after everything is sorted and every point and solution agreed upon, we must make arrangements with the Notary to sign. We will sign the deeds before the Notary, purchase and mortgage deeds (if one is required), and payment/keys will be exchanged, congratulations! You are the new owner of a property in Spain, but the process isn’t over yet.
Fourth and lastly, we have to pay the Notary fees, taxes and Land Registry. These expenses might be shared with the seller or paid by the buyer. Then, after a couple of months we will have the deeds back fully registered and up to date. The Notary and Land Registry fees are regulated, like the taxes, but they depend on a
number of factors like the number of sheets in the deeds, the price of the property and other terms of the deeds.
The taxes for a resale are 8% on Murcia area and 10% in Comunidad Valenciana. These percentages might change in the future. For off-plan developments taxes are slightly different, don’t hesitate to contact us if
you have any question.
HOW TO SAFELY SELL A PROPERTY IN SPAIN
The process to sell a house is similar, but all the documents should already be in the possession of the current owner. If they are not, we can help you. There are just a few things and expenses to take into account:
If you are a non-resident here in Spain, the buyer, by law, must retain 3% of the purchase price and pass it straight to the Tax Agency. A refund can be requested if you are selling with a loss and up to date with your taxes.
Plusvalia tax, managed by the Town Hall: the amount will depend on the year you purchased the property and the theoretical increase in the value of the land. There is currently a huge argument because even when you’re selling with a loss most back for you. Town Halls still demand payment. If that is your case, we might be able to claim it
You will need an Energy Efficiency certificate.
We hope this outline helps you, in any case should you have any questions you can contact our Property Solicitors in Murcia. We have assisted many clients buying a house in different areas: Mazarron, La Manga, Mar Menor area, La Zenia, Playa Flamenca, Torrevieja, etc. Beach properties and resorts alike.
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