When the pandemic started in Spain, many more people started buying housing remotely. Spanish developers began using the most advanced technologies in their sales to attract customers. This article will take a look at the ins and outs of buying Spanish real estate remotely.
Content:
- Remotely purchasing Spanish real estate: how does the process work?
- Advantages of buying real estate remotely
- Tips for buying real estate remotely
- We’ll help you buy real estate in Spain remotely
Remotely purchasing Spanish real estate: how does the process work?
The process of buying Spanish property remotely has several stages:
- Contact a real estate agent to look for and choose a house, apartment or villa
After you submit an application to a real estate agency in Spain to search for the property you want, specialists will contact you via an online messenger or video link. The client will then choose a home from a large real estate catalog of tens of thousands of properties.
- View the home online
Viewing Spanish real estate online means you see the interior, window views, and overall layout. You can also directly ask the seller, representative or developer questions.
- Drawing up a reserve agreement
To secure a property on sale that you like, you’ll need to sign a reserve agreement reserving it for 2-3 months. The contract template is sent to the client beforehand for review. You’ll need the following documents to sign the reserve agreement: a foreign passport copy and the completed and electronically signed reserve agreement. In Spain, a remote signature has the same legal force as a regular one.
The standard reserve amount for the secondary real estate market in Spain is 3000 euro and 5000-6000 euro for the primary market. The transaction terms are added to the contract. These are the terms of the agreement, the property’s value, the amount of the pledge and the conditions for its return.
- Cooperation with a lawyer
After a buyer signs a reserve agreement, they will need a lawyer’s services. Their help will include opening a Spanish bank account and getting an NIE. The lawyer will also need to check for any debts, real estate encumbrances, the ownership of real estate in Spain, its compliance with the cadastre, private rent agreements and their length, as finally representing the buyer’s interests with a notary. After registration of the real estate purchase and sale transaction, the lawyer will link utility contracts (electricity, water supply, housing maintenance) and tax payments (like the annual IBI property tax) to the buyer's account. The average payment for a lawyer’s services is about 1,000 euro.
- Giving the lawyer power of attorney
The lawyer will give the client all the necessary information for the right documents to open a Spanish bank. They’ll do this either in writing or by phone.
At the beginning of the working relationship, the lawyer sends a power of attorney template with the right to purchase and register the real estate in the name of the buyer. This must be notarized in the client's country of residence (by an apostille) or at a consulate.
- Opening a Spanish bank account and transferring funds
You need the following documents to open a bank account:
- international passport;
- foreigner’s identification number (NIE);
- employment certificate about the position held;
- certificate of no criminal record;
- certificate of receipt of funds and payment of taxes;
- bank cash flow statement.
These documents can be sent to Spain by a courier service. The lawyer will then transfer all documents to a Spanish sworn translator to be translated.
Having received this package of documents and power of attorney, the lawyer goes to a bank. After the bank manager approves, funds are transferred from the buyer's bank in his native country to his Spanish bank account.
- Transaction
On the day of the transaction, the lawyer (having power of attorney and the reserve agreement), writes a personal check in the name of the property owner. At the notary, the receipt is transferred, the bill of sale is signed and the keys are handed over.
The lawyer will keep the bill of sale, contract and keys after the transaction.
- Registering real estate in the digital register and original agreement receipt (Escritura Publica)
In Spain, the procedure to obtain an «escritura» takes 1 to 3 months. But, the Spanish Property Registry database (Registro de Propiedad) immediately displays information about the new homeowner. Getting information from the Registry (Nota Simple) is done on the Registry’s official website – registradores.org. This is a paid service that costs 10 euro.
Advantages of buying real estate remotely
- You can choose the best property for you
Virtual space gives you an almost unlimited number of real estate opportunities. The amount of information available is one of the advantages of buying a property over the internet.
- Convenient communication
Direct communication channels like WhatsApp or Messenger on a realtors’ website make it much easier to make inquiries and check out all parts of a property without even leaving home.
- Saves time and money
- Reliable
Choosing the right real estate agency guarantees a safe and reliable transaction as they only work only with trusted lawyers and developers in Spain.
After arriving in the country, the client only needs to get their keys to their new home and collect the original purchase and sale agreement from the lawyer. The real estate agency will deal with any other issues.
Tips for buying real estate remotely
To safely invest in real estate remotely, follow these tips:
Confirm the legal status of the house or apartment you want to buy
You have to hire a qualified lawyer with experience in the field of remote real estate purchases who knows local legislation.
Evaluate the reputation of a real estate agency
If you work with a real estate agency, check its tax address, visit its official website and read reviews about it on social networks.
Verify the seller’s identity
The lawyer must confirm the property owner’s identity.
Investigate the condition of the property
During an online tour, it is important to evaluate the quality of wiring, gas pipes, structures, ceilings, and the bathroom, kitchen, and living room.
Use secure payment methods
Payments should only be made through official banks.
So, in the modern realities of life, remotely buying an apartment in Spain can be a good option for foreign investors. In many ways, the process is similar to a normal home purchase. The only difference is that you’ll have to rely on a real estate agent who can find good quality housing and will assist you during the entire transaction. So, one of the key points when you buy a home remotely is to search for a trusted agent with experience in remote transactions.
We’ll help you buy real estate in Spain remotely
Is it really possible to buy an apartment in Spain remotely? Spain-Real.Estate offers a large selection of real estate and professional specialists with successful remote transaction experience. With us, purchasing real estate remotely will be easy, fast and reliable.