Legal Info

Reservation Deposit and Contract     
The first step in the purchasing process in Spain is to secure your property by depositing a sum of money, the Reservation Deposit, with the vendor, taking the property off the market for a period of time.

Your lawyer will ensure that basic terms of agreement are incorporated into a Reservation Contract, which is signed by both parties at the time of paying the deposit. These terms will include the property details, purchase price and estimated dates for exchange of contracts and completion.

Private Purchase Contract   
Once the deposit has been paid and the reservation contract signed, there will be an agreed period of time during which your lawyer will undertake all the necessary searches to ensure the vendor is the legal owner of the property and it is free from any potential charges or problems. As in the UK, Spain has a Land Registry system enabling your lawyer to conduct thorough searches of the title giving you added security and peace of mind.

During this period, the detailed terms of the purchase will be negotiated and incorporated into a Private Purchase Contract by your lawyer, ready for exchange of contracts. It is customary practice for the purchaser to pay 10% of the purchase price on exchange of contracts, less the deposit.

Completion   
Formal completion takes place when the title deeds (escritura pública) are signed before a Notary Public and on payment of the balance of the purchase price. The Notary acts as an impartial bystander and ensures everything is completed in the proper manner.

Post Completion   
Following completion your lawyer will ensure the title deeds are registered with the Land Registry and the applicable taxes are paid to the authorities.

Your lawyer will also assist you by registering you with the local authority for payment of local taxes, equivalent to Council Tax in the UK.