BUYING ESSENTIALS FOR FOREIGNERS
Steps include:
1. Bank Account It costs nothing to open an account in a local bank in the area you intend to buy. It usually takes about half an hour for this very simple process. Bring your passport.
2. Foreigners' Registration Number - NIE Every buyer needs one, or you cannot claim your deeds. A simple process in the Department of Foreigners at the police station of your local city.
3. Identify the Property and Agree Terms Price, deposit percentage, completion date, fixtures or fittings etc.
3a. Mortgages Spanish interest rates are low and local banks are happy to provide mortgages for both residents and non-residents. Non-residents are able to negotiate up to 60% of the bank’s valuation on the property. The slight drawback is the high set-up charge.
4. Lawyer's Advice Your lawyer will double check the deeds and the last rates receipt, to make sure there are no hidden problems with ownership, wills, land registration etc.
5. Nota Simple The validation that your chosen property has no debts against it. Obtained from the local land registry office.
6. Planning Department Double check your zoning - urbanised, green belt etc - and that there are no major civic projects in the pipeline.
7.'Private Contract' & Deposit Your lawyer will draw up a contract describing all the terms and conditions of the sale. When you sign this you pay over a deposit normally 10% of the purchase price. This will hold your property. If you renege you forfeit the deposit. If the seller reneges he must pay you double.
8. Signing of Deeds in front of Notary
Transfer your money into your bank account, (we highly recommend using a currency exchange company – see links). Advise the bank a few days before of the amount of your cheque or cash required. Pick up the cheque and a certificate of the transfer of funds and proceed to the Notary office. A translator (if required) will be present to make sure you understand every word of the deeds. The document is signed by buyer, seller and translator and the funds exchanged for the keys.
NB Your cash sum will need to include your 10% costs. This will be used by your lawyer to pay the 7% stamp duty to the government, notary fees, lawyer’s fees, as well as the cost of registering the deeds in your name. The registration process can take up to 3 months when you will receive an original copy of the deeds, an accounting of the funds, and usually some change. The estate agent’s commission is also due at this point.
9. Transfer of names Visit the local electricity board, water board, and town hall (for your rates and rubbish collection) to transfer these accounts into your name. Requires copies of your deeds, passports and NIE numbers.
10. Moving in If you are moving from another country, there are many reputable companies who can pack your furniture, hold it for you, deliver and unpack it for you. See links.
More details of the above steps are available on request. |
