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Purchase of the property
Both individuals and legal entities have a right to purchase a property in Spain: only a valid passport and money are needed. Other documents and permissions will not be necessary. To sell the property according the laws of Spain can only the owner or a person who has a notarized authorization from him.
A procedure of purchasing the property right in Spain
1. After a property is chosen and reserved for the customer by the company o agency, a current account is opened for the buyer and all the payment associated with the purchase of a property
should be charged from this account. Further, the utility services, taxes, insurance and credit payments can be also charged from this account.
2. To open an account in euros is free of charged but further if the balance is positive an annual or trimestral commission will be levied. An installment amount can be zero. After that, you will get a bankbook where all the operations will be reflected. In 3-5 days, you will get a debit card. A Spanish bank can also issue for you a credit card (Visa, MasterCard).
Any property in Spain should be registered in Property Register. In this register, you can get the information about who is the owner of the property, what is its cadastral value, total area, as well as the possible debts of the owner.
3. After the property is chosen and a decision to buy it is made, an individual contract of purchase is drawn up where the conditions and payment method is mentioned. As a rule, both parties, the property according the Property Register, total price, taxes and payment method are indicated in this contract. When the contracted is signed, as a rule, the buyer pays about 10% of the total amount as a deposit. The rest of the amount is to be paid at the moment of signing the bill of sale (Escritura Pública), which is signed by the buyer and the seller in the notary office in the presence of the Spanish notary. The payment should be confirmed by the documents. Better if it is arranged by the bank transference to the current account of the seller or by the bank cheque.
4. All the documents the buyer signs together with the property owner:
- When the property is bought on the secondary market - this is an individual;
- When a new property is bought - this is a construction company.
A purchase procedure in Spain is always exercised by a notary that guarantees the maximum security.
The only case when the buyer signs the purchase documents with an agent is when the last has a notarized authorization from the seller to affect a deal on his behalf.
A real estate agency also has a right to sign a preliminary individual purchase contract on behalf of the seller and receive an advance payment. In this case, a common authorization from the seller is needed.
5. The keys are handled when the notary agreement is signed. As soon as the purchase notary agreement is signed, a notary send a fax to the Property register to inform that the deal has
been made. A bill of sale can be taken from the notary office in 2-3 days after the contract is signed. There are 30 days the stamp duty (I.A.J.D.) is paid and the documents is presented to the Property Register.
6. Ground in Spain is an object of purchase like any building. In other words, any individual or legal entity (inclusive a foreigner) has a full right to buy a ground plot. However, there are a lot of details. One of the problems is the purpose of the ground plot determined by the government. Before making a deal you should check out all the documents that states the purpose of the plot you are interested in.
7. In Spain there are the ground plots, that can only be used for the agricultural purpose or they represent historical or archaeological value, and it is forbidden to construct anything there. It is forbidden to construct anything in 100 m from the coast as the Spanish constitution considers that the coast and beach are the government property. In 1988 in Spain, a national Coast law was issued and it confirms and extends the government rights for the coast zone.
8. In Spain almost all the ground plots are the private property. The plot are being sold and can be used for the further construction. The purchase of the ground plot where no constriction is considered is levied by the 7% tax and notary costs. To build any building requires the licenses for the particular projects according the limits for the area indicated. As a rule, the height of the building can't be more than 3 floors.