Lucas Fox Property – Guide to Spanish Buying Process

The steps to buying a property in Spain

Stage 1: Holding Deposit

Upon your offer being accepted the first stage is to put down a holding deposit to take the property off the market. This varies from property to property, depending on the price, but it is normally at least €6,000.

Stage 2: The pre-agreement – Contrato privado de compraventa

We always advise our clients to use a solicitor for the purchase and can recommend several solicitors in Barcelona that speak English.

Unless you are paying in full and in cash immediately, you will need to enter into a Contrato privado de compraventa (essentially a preliminary sales contract). This is normally a simple agreement in which the Seller agrees to sell the property, and the Buyer agrees to buy the property at the price agreed. This will contain all of the relevant details such as a description of the property, purchase price, and date of completion. At this stage you will be expected to pay a deposit, this is at least 10% of the agreed purchase price.

Included within the contract there is normally an arras clause.  Should the seller decide to withdraw you are entitled to twice their deposit as compensation, should you decide to withdraw your deposit is usually lost. Of course, the buyer and seller may choose another type of agreement if they prefer.

Prior to entering the contract, the following checks will need to be carried out:

(a)     Check on planning status

(b)     Check on title and whether the mortgage is being sold free of debt

Stage 3: Final Contract - Escritura de compraventa

On the completion date the balance of the purchase price (sales price minus deposit) and any fees payable by the buyer must be paid.

The seller and buyer then sign the Escritura de compraventa contract, which is equivalent to the title deeds of the property. The buyer is then issued with the public deed of conveyance (escritura) in front of a Notary Public, who certifies the transfer, and a copy will be passed to the tax office and on to the property registry. The Notary Public in Spain is a public official who will be required to witness the deed of sale, however expert, independent legal advice should be taken to protect your own interests.