I. PREVIOUS STEPS FOR PROPERTY PURCHASE
A.1.- OBTAINING THE SPANISH FOREIGNERS IDENTIFICATION NUMBER (NIE)
A.1.1.- Explanation
Foreigners who, for their economic, professional or social interests are related to Spain need to get the Spanish Identification number (NIE).
A.1.2.- Documentation required
– (i) A complete apostilled copy of the Passport (all of the pages) or (ii) if done at the Spanish Consulate, the complete copy of the passport (without been apostilled).
– Submitting FORM EX-15 before the Spanish government authorities and its subsequent collection on Client´s behalf.
A.1.3.- Timing
– Three (3) business days from the day the documentation is received.
A.2.- OPENING A BANK ACCOUNT
A.2.1.- Explanation
Once the NIE is obtained, we strongly suggest opening a Spanish Bank Account on your behalf, in order to pay all the fees and expenses that shall arise from the property, such as Community of Neighbours, Utilities (water, gas, electricity) etc.
A.2.2- Timing
– Between four (4) and six (6) business days.
A.3 .- POWER OF ATTORNEY
A.3.1.- Explanation
To carry out the aforementioned procedure, it is compulsory to get a Power of Attorney (PoA).
A.3.2.- Content
Drafting and preparation of a Power of Attorney empowering LEXIDYto execute the following authorities:
a) Application in obtaining the NIE (NĂşmero de Identidad de Extranjero).
b) Opening a bank account.
c) Purchase the property
This Power of Attorney can be time-limited, and the authorities can be narrowed at your convenience.
A.3.3.- Granting the PoA
As you probably won’t be traveling to Spain, this Power of Attorney shall be granted at the foreign country. It can either be done:
(i) At a foreign country based Notary of your convenience. Shall be signed by the Notary and Apostilled, or;
(ii) At the Spanish Consulate, no need of subsequent Apostille legalization.
II.- BUYING PROCESS
1.- RESERVATION DEPOSIT
Usually, before the signing of the Arras agreement and in order to present an offer, there is a deposit paid amounting around € 500 to € 1,000.
2.- ARRAS AGREEMENT (EARNEST MONEY PACT)
The Arras Agreement is where all the contract terms and conditions of the purchase are established, and part of the price that has been settled is paid. The amount to pay in the agreement can be negotiated with the seller. Normally, the custom in Spain is to pay 10% price.
The Arras Agreement consists of a penalty clause stating that:
(i) If the Seller doesn’t comply with the conditions settled in the Agreement, then he will be required to pay back the buyer the amount paid in advance doubled.
(ii) Otherwise, if the buyer if the one that is not fulfilling with the conditions established or retracts from the purchase, then the seller will keep for himself the amount paid, as a penalty for not buying the property.
LEXIDY’S duty would be to do the Due diligence with verification, analysis and posterior advice of all the eventual charges related to the property, this is:
I. – Urban Charges situation and Affections from the Town Hall:
Due diligence with verification, analysis, and posterior advice of all the documentation related to the property’s situation, this is the reports issued by the Planning office from the Town Hall.
II. – Simple Informative Note from the Land Registry.
III. – Confirmation of current payment of the following:
A. Payment of Land Tax (IBI) and previous tax obligations.
B. Owners Community neighborhood.
IV. – Certificate of habitability for the property is up to date, a study of tenancy, as well as taking care whenever there is a mortgage.
V. – Cadastral certification attesting the physical, legal and economic data of the property contained in the Cadastral Registry.
VI. – Certificate of the mortgage credit balance (if needed) for the issuance of a certificate of the status of the mortgage and the state of the deed of the mortgage redemption.
VII. – Study of tax reliefs on the purchase of the property, if applicable.
VIII. –Technical Building Inspection (if any) to check the state of the residential building in order to verify the duty of the owners to conserve and rehabilitate their properties.
3.- PURCHASE DEED (COMPLETION)
Here is when the transmission of the property takes place, and the client would become the registered owner. As aforementioned we could:
(i) Sign it on your behalf with the PoA provided.
The scheduled date of the deed usually takes place 1 to 3 months after the Arras agreement. It can be narrowed or broadened at your convenience.
4.- PROPERTY REGISTRY
Immediately after the signing before the Notary, the Purchase Deed shall be registered at the Property’s Registry Office.
It usually takes from 3 to 5 weeks to have the title deed registered.
5.- TAXES AND EXPENSES SUBJECT TO THE PURCHASE
5.1.- EXPENSES
a) Notary
Notary costs are those produced by the public deed of purchase.
These costs are established by law and the sum depends on the amount paid for the property but may be increased by other notarial operational aspects (i.e. the number of copies, the extension of writing etc).
The estimate is around 0,5% of the value paid in the purchase.
b) Property’s Registry Office
These are the expenses generated by registering the property in the Real Estate Registry. They are also set by legislation and the amount depends on the price of the property.
The estimate is around 0,5% of the value paid in the purchase.
