AT THE BEGINNING OF THE RESEARCH
Internet is the tool most used by people planning to buy a real estate. Searching the Net is usually the first step for these potential buyers. When the interested person finds properties that match their search criteria on several pages they should ask themselves:
– Is it better to get in touch with all the agents who publish these properties, even if they don’t know them? Even if they never heard of them or even if these pages don’t provide sufficient information?
– Is it better to start looking for a qualified and experienced real estate agency with a large portfolio of homes that meet your criteria?
Of course, the answer is the second option.
Several agencies in Marbella meet these conditions, and many have an excellent reputation, a long track record, a broad knowledge of the product and the areas, and strictly adhere to the code of ethics of real estate agents.
In addition, by choosing one of these agencies, you can be sure that they will devote all the time necessary to you and understand your specific needs exactly. They will share with you their vast knowledge of the market and similar properties that have recently been sold, and they will surely find the perfect property for you. If they didn’t have that “perfect property” in their portfolio, be sure they will get it through their colleagues or other collaborating agencies.
CHOOSE A LAWYER
First, Marbella Best Home recommends you to choose a qualified lawyer to represent you, and a Tax Advisor specialized in Spanish taxation to take care of tax-related matters.
Once you have made the decision to buy a property in Andalucía, it is advisable and very useful to make an appointment with a lawyer during your visit to Marbella. Even if you have not found your ideal home yet, when you are back in your home country and negotiations for the purchase are underway, it will be more difficult for you to choose a lawyer from distance.
START ON A GOOD BASIS
Having a lawyer, a NIE (Identity Number for Foreigners in Spain) and a Spanish bank account will provide many advantages for the buyer. In fact, if his offer is accepted, the buyer will be able to pay a deposit immediately, since the basic requirements will already be in order.
REGISTRATION FEES (ITP) - Second-hand Properties
To be paid by the buyer of any real estate property (villas, apartments, land, commercial premises, garages) if the seller is neither a real estate developer nor a regular dealer in real estate resales (exempt from paying VAT). If the minimum tax value of the property, as established by the Autonomous Government of Andalucía, is greater than the purchase price, then the minimum tax value is applied:
– The first installment of less than €400,000 (or €30,000 in the case of garages, except those linked to housing with a maximum of two per house), will bear registration fees of 8%.
– The portion between €400,000 and €700,000 (or between €30,000 and €50,000 for garages) will bear registration fees of 9%.
– The portion which exceeds the sum of €700,000 (or €50,000 for garages) will bear registration fees up to 10%.
There is a reduction of the registration fee for a real estate agency or professional companies that buy second hand properties and resell them within 5 years. The registration fee will be of 2%.
VAT AND TAXES ON DOCUMENTED LEGAL ACTS (AJD) - New properties
For any villa, apartment or garage attached to an apartment, when the seller is a promoter or a regular dealer of NEW PROPERTIES (first transmission): 10 % + 1,5 %.
Land or only for the first sale of commercial premises: 21 % + 1,5 %.
NOTARY AND REGISTRATION FEES
The cost increases according to the number of pages, the complexity of the act and the value of the property: 1000 € to 3000 €.
Lawyer fees are around 1% of the sale price, depending on the lawyer and the price of the property.
The full official costs associated with purchasing a finished residential property are about 10-11% for resale properties, or about 12-13% for new properties.
A good agent will be very helpful during the process of negotiation for the purchase of the property that interests you. It is important to take into account that an offer that is too low will not arouse the interest of the seller and could even be counterproductive.
A well-detailed offer usually catches the attention of the seller. We recommend you to cover all the points you want to negotiate on in one go rather than negotiating bit by bit. If possible, make your offer in writing (naturally subject to contract), including not only the price, but also the amount of the deposit, the date on which you will proceed to make payment, the date on which you wish to conclude the transaction, things that you consider included in the price (for example, furniture and accessories, if applicable) and, a point too often overlooked, the perfect working order of all household appliances, electrical and electronic.
We also advise you, if another property arouses your interest, to inform the seller. At the same time, you can consult your lawyer during the negotiation process to ensure that all the conditions of the offer meet the legal criteria. On certain occasions, lawyers will intervene in the most complex negotiations.
THE PURCHASING PROCESS
Actually, the process of acquiring a property in Spain is quite straightforward. The “last word” on the legal status of a property lies with the Land Registry, which will inform the buyer immediately whether the property is free of charges and debts or not. Normally, and if the full price of the sale has not been paid directly, a private purchase contract will be drawn up, on which will be all the data and details of the operation – data from the register of property, price of purchase, method of payment, deadline for passing the deed before a notary, date of handing over the keys, etc..
Upon signing this contract under private signature, a deposit is paid, the amount of which varies considerably depending on the terms of the sale and the deadline for signing the deed before a notary. Generally, the time to complete the transaction is 30 to 60 days; the deposit will then amount to 10% of the total price of the property.
Acquisitions of new constructions are logically paid during the construction period, and all advance payments that are made before the end of construction must be guaranteed, according to Law 38/1999 on the Planning of the Construction (LOE), by a banking entity or insurance company. If the property is not completed by the stipulated date, the buyer has the right to claim the money paid plus applicable legal interest. This law also obliges the property developer to take out TEN YEAR insurance (ten-year guarantee) in the event of a construction defect, the buyer being the beneficiary of this insurance.
Once the full amount of the purchase has been paid, the seller will issue the deed of sale free of charges and debts in favor of the buyer. This deed will be signed before a notary, and then sent to the office of the Tax Agency for payment of registration fees if the property is resale or second-hand, or stamp duties if the purchase is made directly from a promoter. It will then be presented to the Property Register for registration. When the deed is drawn up, a provisional registration is made in the Property Register.