Once youve chosen your ideal property and found a Spanish mortgage how do you go about completing the purchase?

Many foreign countries have different regulations regarding the buying and selling of property; this includes Spain where such transactions are regulated. As such hiring an English speaking lawyer would be advisable. Make sure that the Spanish property is free of restrictive clauses and debts.

There are two different categories when it comes to the legal process of purchasing Spanish property. First you have the preliminary contract, or Contrato privado de compraventa, and then you have the completion contract, or Escritura de compraventa.

There should be a preliminary private sales contract signed once you have both agreed on a purchase price. Before the Contrato privado de compraventa is signed, the vendor must show proof of ownership, and also proof that there are no liens or judgements against the property. It is Spanish law to charge all outstanding debts to the actual property, and any remaining debt would be the new owner’s responsibility. Nota Simple documents are designed to confirm whether or not a property contains any outstanding debts.

Details such as completion date, price and description will be written in the first sales contract. At this point you will also be more than likely required to pay a deposit of between 5 percent and 15 percent of the purchase price. These funds will be held for you in a bonded client account. It is possible though not advisable to sign the private preliminary sales contract without putting down a deposit.

The second stage is the final contract stage, or the Escritura de compraventa stage. On the completion date, the balance of the price of purchase and all fees need to be paid by the purchaser. The vendor and the purchaser will then come together to sign the contract, which is equivalent to a deed on the property. The buyer will be provided the public deed of conveyance, also referred to in Spain as the escritura, in the presence of a Notary Public. In order for everything to be legal a copy of the deed will have to go through the tax office and property registry. In Spain, Notary Publics are public officials required to witness a deed of sale, but you should also make sure to have your own independent expert legal advice to make sure that your own interests are protected during this legal process. Remember too that as the buyer you will be responsible for paying the Notary Public’s charges along with the real estate sales taxes.