The procedure of buying a property in Spain can be quite complicated and overwhelming, this is why we always recommend that you use a reputable real estate agents like ourselves to help you with the process.
We have compiled a step by step buying guide to give you a good idea of the process you can expect to go through when you’re looking to buy a property in Spain.
Step 1 – Contact with FM Estates
If you are looking for a property for sale the first step would be to Contact Us. You can do this in any of the below ways…
• Phone us on +34 952 936 778
• Email us on [email protected]
• Or via the ‘Contact Us’ page on our website
Step 2 – Let us do all the hard work for you!
Besides our properties that we have listed for sale on our website, we have a great working relationship with other agents along the coast and have access to all their properties, giving you over 20,000 properties in the Costa del Sol at our finger tips, there is no reason to go elsewhere!
Just tell us what is important in a property for you, that could be anything like:
• Sea View / Panoramic views
• Walking distance to beach, amenities and restaurants
• Swimming Pool / South facing terrace
• Penthouse / Apartment / Villa / Townhouse
• How Many Bedrooms? Bathrooms?
Step 3 – Make an offer.
Now that you have found your perfect property and you have an offer in mind, it’s time to put in your offer.
We will go to the vendor with your offer value and it will be either accepted, rejected or sometimes a counter offer can be made. If the offer is accepted, we ask the vendor to sign an offer acceptance form.
It’s at this point that you will have a rough idea of the costs and fees in making your purchase (see fees and taxes below)
This process is subject to the property being legal and the vendor having the correct documents.
Step 4 – Reservation Fee.
A reservation fee is required, this will be payable to the Real Estate Agents or the vendors lawyer. The property is then taken off the market.
Normally the reservation fees are 3000€ or 6000€ dependant on the value of the property or the vendors requirements.
FM Estates will then send over a Reservations contract for the buyer and the vendor to sign. The reservation contract outlines the terms of the contract and states that the reservation fee is non-refundable unless there are issues with legal searches.
Step 5 – Instructing a lawyer
The lawyer is critical when buying a property in Spain. At FM Estates we only like to work with lawyers that have the correct professional indemnity insurance cover and that are registered and regulated by the relevant governing body.
If you need help to find a lawyer, we are more than happy to put you in touch with a lawyer that we know and trust whom has a high level of both Spanish and English.
The lawyer will carry out all the following
• Checking the property is legally registered.
• Confirming that the vendor owns the property and is entitled to sell the property.
• Checking that there is no debt or charges against the Property ie mortgages
• Checking the property is registered with the town hall
• Preparing all the relative documents ready for completion
• Change in ownership of all bills supplies and taxes
Once the lawyers are satisfied that they have finished all their legal checks the sale will go to exchange of contracts.
Step 6 – Exchange of Contracts
On exchange of contracts a payment of 10% of the property value will need to be paid to the vendor and a sales contract signed, this is normally done 10 days after the reservation contract. The sales contract is a binding contract between the buyer and the seller of the property with an outline completion date that has been agreed by both Parties.
Should the buyer withdraw at this point, they will forfeit their deposit. Should the seller withdraw, not only must they repay the deposit to the buyer, but they will also be required to pay the same again in compensation.
Step 7 – Completion
Its finally time to collect your keys. By the time completion day comes around your lawyer will have prepared all the relevant documentation.
Completion can be done in person or if you are unable to attend you can give your lawyer power of attorney to act on your behalf for your new property
Step 8 – After Sales Information
Please see our after sales page for more help on what to do now
Fees & Taxes
It is important to know the fees and taxes when purchasing a property in the Costa del Sol as the purchase costs are not included in the advertised selling costs. The total purchase costs are on average between 10-12% of the purchase price. The fees are for
• Government Transfer Tax (ITP or IVA)
• Legal fees
• Notary and registry fees
• Mortgage fees (optional)