Please note that when buying a property in Andalucia, the total costs associated to a property purchase transaction are normally between 10% and 14% of the purchase price (without a mortgage involved) Example:  Property cost 200,000€ (allow between 20,000€ - 28,000€ to cover all associated fees) 

Reservation of Property 

The first step is to formalise your offer on the property and remove it from the market, thus protecting our interest to purchase.  Once the terms of purchase have been discussed and the seller accepts the offer, a binding agreement is born, which is sealed by signing a reservation contract.  This includes payment of a deposit of between 3,000€ and 6,000€ to reserve the property prior to the exchange of a private purchase contract.  This reservation fee is fully refundable in case that the checks carried out by your lawyers unveil any legal obstacles which affect the buying process. 

The Searching Process  

Whilst the property is ‘reserved’ in your name, your lawyer will carry out all the necessary searches and investigations on the property with the relevant authorities to ensure that the property you are purchasing is legal and free from any charges, debts, or encumbrances.  They will also ensure that the property has the necessary Title Deeds and that the vendors are the rightful owners. Once the searches have been finalised, your lawyers will confirm whether the searching process has been satisfactory concluded.  You will receive an accurate description and explanation about every single aspect of this investigation. 

The Private Contract 

Once the searches are complete and your lawyers are absolutely certain that the property is legally declared in the best conditions to purchase, a Private Contract is drafted and signed by both parties.  This private contract sets out all the details of the agreement, payment terms and completion date.  During this Stage the buyer puts down a non-returnable deposit, which will be a percentage of the purchase price less the holding deposit paid at the reservation.  If you are unable to be present at the signing of the deed, your lawyer can carry out all necessary procedures in your name by means of Power of Attorney.  

Taking Possession of the Property 

Immediately after the deeds have been signed, the buyer will receive the keys to the property, and take possession of the property. 

Title deed and Property Registration 

The property registration procedure entails the payment of all the taxes applicable to the property and the obtaining of the final registrar stamp of the Title Deed, which guarantees the transfer of the property.  This procedure is an important step and takes place once the Title Deed has been signed and you have taken possession of your property.  The title deed usually takes around 2 to 3 months to be returned by the Land Registry office.  The Notary will give your lawyers notice that the deed is available for collection.  

Utilities 

Once the sale has been finalised, your lawyers will ensure that all the utility contracts for the property (electricity, water, rubbish collection, etc) are in the name of the buyer.  Your lawyers will also arrange all bills to be paid by direct debit from your Spanish bank account if you wish. 

We recommend Manzanares Lawyers in Marbella.  The above information is provided by Manzanares and is taken from their Legal Guide – Buying a Property in Andalucia, Spain