Given the economic magnitude of the purchase and sale of a property and the various problems that can arise, it is imperative to act with the utmost diligence and caution.
In this context, the intervention of a lawyer specializing in real estate law is of fundamental importance. At Posada Lawyers we provide comprehensive legal advice and assistance throughout the entire acquisition and/or sale process.
It is important to note that although the purchase of a property is a single transaction, it is subject to slight modifications depending on: whether the buyer will attend the purchase of the property or delegate it to his lawyer, whether the buyer and/or seller are tax residents, whether it is a new construction, etc.
Generally speaking, we will outline the steps to be taken by a foreigner interested in buying a property.
NIE (Foreigner’s Identity Number): an essential requirement to be able to buy a property in Spain is to have a Foreigner’s Identity Number (NIE). This is a personal, unique and exclusive number, sequential in nature, with which the buyer will be identified in the purchase contract and will pay taxes and expenses.
Bank account: Although it is not an essential requirement, it is advisable because it greatly facilitates the operation of the purchase and its subsequent day-to-day running.
Feasibility study: in the case of applying for a mortgage.
Checking the condition of the property: It is not compulsory, but it is very convenient. Checking the condition of the property before making the purchase can save a lot of unpleasantness and adjust the price to the true situation of the property. There are specialized companies that can carry out a qualified inspection of the property prior to purchase.
Check of the legal situation of the property: We verify whether the property is subject to tax charges, liens, mortgages, the real owners of the property and whether it is subject to an inheritance process, whether it has the necessary licenses for its use, etc.
It also verifies that there are no limitations on the property, that it is up to date with the community of owners and what the approximate maintenance and operating costs are. In short, what is necessary to buy with security from a legal, urbanistic and fiscal point of view.
Signing of the different contracts: Review and/or drafting of the different contracts involved in the sale and purchase process (reservation, deposit, deed, mortgage loan).
The client must inform us of any commitments he has made with the other party so that they can be correctly reflected in the various contracts. The purchase process ends with the signing of the title deeds by the buyer and seller in the presence of the notary.
Throughout the whole process, we are by the client’s side, supervising, advising and explaining the successive steps that take place. We have found that clients appreciate the fact that they feel supported by Posada Lawyers at this time. In the event that the client is unable to attend the signing of the deed, we can appear to sign on their behalf. Always with a power of attorney.
Payment of taxes and registration in the land registry: There are several taxes involved in the purchase of a property (VAT, ITP, IRNR, Plusvalía, etc.).
This is an important cost that must be taken into account by the buyer. Payment of these fees is compulsory for the subsequent registration of the deed of purchase in the land registry.
Registration in the land register.
Change of supplies: We have already bought the property and have it registered in our name. Now, what? It is necessary to change the ownership of the supplies and the direct debiting of bills, charges and taxes.