How do you purchase real estate in Spain online?
To achieve this, the buyer should hire a reliable agent who will support the transaction through all the steps of purchasing. Read this post to learn about the stages of closing the deal on a real estate purchase and sale transaction in Spain.
Content:
- Appointing an authorized representative
- Due diligence
- Reservation contract and contract of sale
- Signing a deed of sale
- Assistance with purchasing real estate in Spain online
Appointing an authorized representative
The first thing you need to do to purchase Spanish real estate online is appoint an authorized representative who will perform all real estate transactions on the spot. You need to grant a notarized power of attorney to this person to make it legal. All you need to do is contact real estate agents with a request to appoint an authorized representative. A consent to representation must be translated into Spanish.
Due diligence
The second important step of purchasing real estate online is due diligence. It is essential to check the documentation on the purchased house or apartment in Spain to make sure that there are no problems down the line.
Here are some of the documents that need to be checked, which would be difficult for a foreigner who does not speak Spanish and does not know the features of the national legislation.
In case of purchasing existing housing:
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Nota Simple.
An extract from the Spanish Property Register (Registro de la Propie-dad) with a summary of the property’s legal status. This document con-firms that the seller of the real estate is indeed its legal owner. It also in-dicates whether there are any debts or encumbrances attached to the property.
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Utility payment receipts and extracts.
Check whether there are any unpaid property taxes or utility debts.
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Contracts with utility providers.
It is cheaper to modify an effective utility contract in Spain than apply for new registration. Check whether all contracts are in effect and make sure providers are trustworthy.
In case of purchasing a completed apartment in new residential projects in Spain from the developer:
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Nota Simple.
A document confirming whether the real estate is indeed owned by the seller. Indicates whether the property has any debts or encumbrances.
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Certificate of Compliance.
A license certifying that the building was built in compliance with the detailed design and can be used for accommodation under the law. This document is required because this is the only way to confirm the construction is legal and sign a contract with utility providers (for water, electricity, and gas).
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Bank guarantees.
Mandatory insurance must be provided by the construction company. It guarantees that the buyer can contact the company in case of identifying any defects within the first 10 years upon construction completion and have them rectified.
Reservation contract and contract of sale
The third step after the due diligence is signing a contract between the seller and the buyer. This contract contains information about the reserved property, infor-mation about the owner, the price, the schedule of payments, and the property han-dover time.
Deposit amounts and payment plans can vary depending on your agreement with the owner or the developer.
Property reservation costs between €3,000 and €6,000. Up to 10% of the home value must be paid within 15 – 30 days. If you are purchasing an apartment in a new residential project, about 40 – 50% of the price is usually paid in equal installments throughout the construction and the balance is paid on the day of signing the deed of conveyance.
Signing a deed of sale
Upon settling all procedural issues, the date of signing the deed of sale is sche-duled. If you apply for a home loan, two documents will be signed simultaneously – the deed of sale and the mortgage statement.
The notary reads the deed aloud on the day of signing. The buyer and the seller (or their legal representatives) sign it and exchange the keys to the new house or apartment, the energy efficiency certificate, and other documents.
Assistance with purchasing real estate in Spain online
This manual shows how simple it is to purchase real estate in Spain online. If you need additional information or you are ready to start selecting a home, please contact the team of Spain-Real.Estate to have all your questions answered.