Purchasing a resale property in Spain can be an exciting step toward a new lifestyle, investment, or retirement abroad. However, the legal landscape can be complex, especially for expats unfamiliar with the Spanish property system.
We are here to help you navigate the resale process safely and confidently. From understanding contracts and title deeds to ensuring the property is free of debts or planning violations, we will walk you through what to look out for and how to protect your interests.
Due Diligence: If you are interested in acquiring a resale property, it is very important to confirm that the sellers own the property, and that the estate agent has the necessary authority to market it for sale. The next step will be to find out with corresponding local authorities if there are charges registered against the property and to establish if the property was built with planning permission.
This is very important especially when you are purchasing property in rural areas. All of this form part of our due diligence checks that we carry out before signing the reservation or deposit contract.
Local regulations: Spain is divided into regions with different laws and regulations related to property ownership. You should be aware of the specific rules of the area you wish to buy especially if you are purchasing a holiday home or investment property.
Negotiation and Contract: We will negotiate and prepare a deposit contract for you including the appropriate terms and conditions protecting your position throughout the conveyancing process. The deposit contract is named in Spain “Contrato de Arras”. This contract secures the purchase and requires a payment of 10% of the purchase price.
Financing: Remember that is also important that, apart from the price, you would need consider all the expenses arising of purchasing a property. In Andalusia, for example, the property transfer tax is 7% (flat rate). You will also need to pay Notary and Land Registry fees as part of this process.
Once you purchase the property, you will have other ongoing costs such as property taxes (IBI and Refuse tax collection), community fees (if applicable), and suppliers expenses. Factor these into your budget for a smoother experience.
Community of Property Owners: If you are purchasing a property which forms part of a complex, you will become a member of the community of property owners and you will be bound to make payments towards the upkeep of the communal areas. These mandatory contributions are known as community fees. It is of course very useful to find out the monthly or quarterly amount of community fees before proceeding with the purchase. It is also important to determine the financial position of the community of property owners, as if there are many property owners failing to cope with their community fees, this may result either in the poor maintenance of the complex and the subsequent depreciation of your property, or in the significant increase of the community fees in the near future, which may put off any potential buyer if you decide to sell your property.
From the start to the end, we provide expert legal guidance to give you complete peace of mind. Our lawyers will support you through the complex legal processes with ease, conduct thorough due diligence to protect your investment, avoid common mistakes, so you can step into your new life in Spain with confidence and clarity.
For further information on buying resale property, please contact us on (+34) 951 552 254 or complete an online enquiry form, and a member of the team will be in touch.