Once during our lives, we arrive at this point: we buy or sell a property. And this moment involves, without any doubt, a set of legal steps that you should carefully consider; as a simple contract between buyer and seller is not enough. In this post, we want to state which are the 3 legal steps you will need to go through when buying a property of any real estate asset in Spain in 2019.
THE PURCHASING PROCESS OF A SPANISH PROPERTY
We can simply group in three big blocks all the legal steps that characterize the purchase of a property in the Spanish territory, using a temporal criterion:
- Procedures or diligences that arise prior to the purchasing of the property (down payment)
- The purchasing contract (public deed)
- Formalities and procedures that come after the purchasing moment
Let’s analyze the property purchasing process of a property in a more detailed way for this 2019:
1.PROCEDURES PRIOR TO PURCHASE
In this section, a series of diligences prior to the signing of the binding contract between both parties are born: the so-called diligences of the property.
What does this process consist of? Basically, it consists of a review and verification of all the documentation of the property in the registry, as well as the validity of those papers.
Once we have a copy of the notarial deed containing information regarding the registration of the property (for example, who is the owner of the property), we can go to the register and request a simple note, a document by which we can see that the property is free of duties and charges (such as mortgages).
In addition, on a large number of occasions, before signing the public deed on the notary, a prior contract is signed, down payment or “contrato de arras”, which is not mandatory.
This pre-contract between buyer and seller has the purpose of formalizing the transaction between both parties: the buyer shows his clear intention to acquire the property, and the seller her intent to sell.
In this deposit contract, the purchase price will be established, the payment method defined (whether it will be fully paid in advance or it will be paid in instalments), and the deposit (for practical purposes, a common down payment).
However, this document, unlike the public deed, can not be used for registration to the property registry in Spain.
2. PURCHASE PUBLIC DEED
Once we sit down with the notary, we will proceed to draw up and sign the sales contract. Once signed, the house can be registered in the Property Registry under the ownership of the buyer (now the new owner).
This part of the process is undoubtedly one of the most important, since a meticulous analysis of the contract will be needed, so as to neither party gets harmed.
That is why we recommend you to receive help from our specialized property lawyers in Spain. Why? Because we will accompany you during the whole process of buying and/or selling your property from the beginning, and we will make sure that there is no clause that could go in your detriment.
3. LEGAL PROCEDURES SUBSEQUENT TO THE PURCHASE OF THE PROPERTY
Once the purchasing contract on the notary has been signed, 3 steps that we must follow in order to deal with all the diligences that arise will come into play:
First of all, we must register the property in the Property Registry identifying the new owner.
Then, we will fill in the corresponding forms referred to the payment of property transfer taxes: the Tax on Patrimonial Transmissions and Documented Legal Acts, to the Autonomous Community in which the property is registered. You have 30 days to realize that payment.
Finally, we must transfer the ownership of public services; such as gas, water and electricity.
And here are the 3 main legal steps to buy a property in Spain on 2019. The purchasing process can be long and complex, basically due to the fact that there is an urgent need to take into account many aspects related to the operation (many time small nuances), especially if we do not want to be harmed.
Thus, receiving the help of specialized lawyers is highly recommended. When do you want to start?