Buying
By downloading and reading our BASIC INFO you can learn the essentials of purchasing a Spanish property. As you read, you will get to know the different points to take into account during the process of buying a home.
A Power of Attorney is a legal document that allows us to act on your behalf, saving you the problem of travelling to Spain on one or more occasions to sign various documents and open any necessary accounts etc.
Is a Power of Attorney necessary?
No, but it is very convenient because it is very useful and makes things easier everyone and avoids trips and time to our customers.
Typical uses of the POA are:
- Applying for your NIE (Tax Number for non residents).
- Signing the Water and Electricity Contracts.
- Preparing payments.
- Opening a Bank Current Account
- Opening any other accounts and services required.
- Signing the purchase deeds.
Unlike most other Spanish Solicitors, Ferrandez Solicitors, do not simply have a general POA which would allow us to do practically anything, even things unrelated to a property purchase. We prepare each clients POA individually to only give us the powers to do things necessary for the purchase.
It is is cheaper and quicker to have the POA prepared and signed in Spain at the beginning of the process, however, this is sometimes not possible. In these cases, the POA is prepared in Spain but sent to you in the UK for signing at a Notary Public near to you. The POA is usually prepared in both Spanish and English for your convenience.
The POA that is prepared in our office is one that allows us to be able to carry out the work that you entrust to us. Of course, we include all those items that may be necessary so that we avoid bothering our clients, but at the same time we avoid anything that is not necessary. For your peace of mind.
You may be told by the seller that ‘there are many offers’ or ‘this property is a magnificent opportunity’. This may be true but don't sign or commit to anything before taking independent legal advice.
At the outset, request a copy of one of the following documents:
- Deed of ownership
- Nota Simple
- Property Registry Data
- Catastral reference
Any of these will suffice and with this information we will make preliminary inquiries about ownership, charges, mortgages and the accuracy of information on the Property Registry.
We will the let you know the legal situation based on the answers to the enquiries we make
In addition, and almost as important as the above, we will prepare and send you details of all anticipated expenses, taxes and fees you need to budget for if you decide to go ahead with the purchase.
Buying a property in Spain is, in essence, no different to buying in the UK in that not many of us would consider purchasing without the help and guidance of a legal professional.
In Spain, partly because of the the different laws and language, legal representation is even more important.
It is quite common for buyers to sign contracts and pay large deposits without any real knowledge of the legality of the document or transaction. Is the property legally registered? Are there rights of way? Is the deposit refundable? The list goes on.
What we want is that you do not act differently than you would if you were buying a home in your country. Simply ask for advice and legal assistance before signing anything. In that way you can be sure that you know what you are committing yourself to and that you pay only the minimum necessary to have your offer accepted on terms you are happy with.
It's about your peace of mind, it's about making the purchase of your home a pleasure and not a problem. Making the preliminary inquiries will not delay your offer by more than one or two days and, in return, you will get information and knowledge on how to act in a way that will provide security and peace of mind when moving forward with your purchase.
When you know that the legal facts match the sales information you can make an offer and reach an agreement. After this agreement we will request other additional documentation from the seller and will check the status of local taxes, community charges, energy certificate, etc.
At the same time we will prepare the contract of sale and set a timescale to formalise the public deed of sale. Even though it is not a mandatory rule, when the private contract is signed, a payment on account is made. This payment is usually set at around 10% of the agreed price.
It is hard to believe but it is quite unusual to find a simple direct purchase without complications and, without guidance, even the the smallest of problems can create a lot of unease.
Properties with mortgages or unpaid local taxes and and community fees are minor issues as long as they verified and taken into account. However, differences in what is shown in the Property Registry and reality require more work to resolve. Problems range from illegally constructed property, annexes and pools built without planning consent to Inherited property that has not been formally transferred.
This is where our expertise comes in. We will look for any underlying issues and attempt to resolve them. The vast majority of problems are solvable but there are times when we will advise that you reduce your offer or even walk away from the purchase.
For us, communication is very important. While we expect to find issues with most purchases, we will normally solve them without involving you. But if you are in any doubt about any aspect of your purchase we want you to let us know so that we can investigate the issue and put your mind at rest. We like to give solutions not problems.
Our BASIC INFO will give you a good idea of the things it is necessary to do to prepare for the property purchase but, once instructed we will explain exactly what is required and what we will be doing in your specific case.
We will also find out your desired timescale. The preparation of a purchase can be done quickly, in some cases purchases can be finalised in just 2 or 3 weeks.
On the other hand, you may wish to take more time, perhaps to get your funding in place or to coincide with an important date. We will always act for YOU and in your best interests. Before doing it quickly it is more important to do it well.
Once all the formalities are finished we are ready to Complete the purchase. This involves the signing of the Public Deeds and paying the funds required.
We will need for you to indicate if you want to attend the notary or if you prefer that we represent you at the time of formalizing the purchase. In either case it would be preferable for you to grant us a Power of Attorney. This will enable us to act on your behalf in all aspects of the purchase and beyond.
(click here for explanation of the POA)
At this time it is essential to apply for the NIE (Foreigners Identification Number) and to open a current bank account.
The need to open a current account is not so much to facilitate payments at the time of signing, it is to be able to set up direct debits for water and electricity charges, community fees, and local taxes etc.
Once all is done and the last checks on the property have been made, a date is set for the signing of the public deed of purchase.
At Ferrández Solicitors we offer a full and complete service. Therefore it is us (and not the notary or any management company) who will take care of everything related to the registration of your deed at the Land Registry. We collect the authorised copy from the notary's office, prepare and pay the transfer tax (ITP) or the legal documents documented tax (IAJD), notify the City Council and pay the Tax on the Increase in the Value of Urban Land (IIVTNU) and we present the deed at the Land Registry. In addition we also change any water, electricity and Internet contracts etc. We also set up the necessary direct debits of the annual local taxes and take any other necessary actions so that our clients do not have to bother or worry in this time.
It usually takes between four to six weeks to reach this point. Once concluded we let you know and, if possible, arrange a meeting between us. The purpose of this meeting is to provide all the documentation related to the purchase of the property and to repay to you any excess of funds or settle any difference due to us. In general we allow for the maximum but there are expenses such as notary fees and registry charges that are estimates and there may be differences at the end.
Once the purchase is completed you would be forgiven for thinking that our work ends there. However, there are other things you may want to consider, such as the making of a Spanish Will and the annual submission of Non Resident Taxes. You may also wish to discuss becoming Spanish Residents.
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