ABOUT THE AUTHOR
ANTONIO TORRES VALDÉSHead of Real Estate Department
You can contact him directly at email@example.com
Firstly, some background. There are many factors to consider, and pitfalls to avoid, when purchasing a property in Spain. I will focus on explaining the most important ones from a legal standpoint.
- To begin with, Spain has buildings over 100 years old with very old registration records that must be cancelled before purchase. The most important examples include lifetime usufructs and long-term leases.
- It is necessary to ensure that the property is not mortgaged or, if it is, that said mortgage is cancelled correctly.
- When it comes time to reserve a property, you will be asked to sign a deposit contract (“arras” in Spanish). We strongly recommend that you have it reviewed in detail by a civil lawyer before signing, since some “arras” contracts conceal a true purchase agreement.
- Before making any payment, either to the estate agent or the seller, make sure to check how said payment will be made, since some “arras” (or deposit) contracts are written in such a way that you could lose the deposit if you do not finalize the purchase agreement.
- There are also a number of certificates that must be signed before a notary that estate agencies do not typically provide unless the buyer specifically requests them.
These points are often ignored, usually due to estate agents’ ignorance of the law. Keep in mind that they are primarily interested in selling the property, whereas a lawyer focuses solely on their clients’ best interests.
Lexidy Law Boutique has successfully participated in numerous property purchase procedures, of many scales and sizes.
In the present case, one of our international clients contacted our firm from outside of Spain as he wanted to buy a property in Barcelona where he could live with his family.
We followed the official procedures to safely and efficiently complete the purchase. Always keeping in mind the characteristics of our client and anticipating to his specific needs at all times. In this case, the client’s particular need was to buy the property remotely, without having to travel to Spain.
- Drafting and signing of a Power of Attorney (PoA)
- Obtaining a Spanish Foreigner ID number for the purchaser
- Obtaining a bank account in the name of the purchaser
- Assistance in financing methods
- Due diligence regarding the property (its ownership, encumbrances, etc.)
- Drafting and preparation of the contract (private purchase agreement, also known as “Arras” agreement)
- Negotiation of the terms and conditions of the sale
- Signing the documentation and realizing the purchase on the client’s behalf through power of attorney
- Assistance with the preparation of the appointment at the Notary Public
- Following-up on the registration of the property with the Registry Office.
We emphasize that our client did not need to travel to Spain at any point, as we could buy the property on his behalf without him leaving his country of residence.
We are happy to note that the client is now successfully living in Spain. Lexidy looks forward to assisting many other clients to successfully buy a property in Spain.
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