Our Services & Some Frequently Asked Questions
You are thinking of buying a property in Spain, how does one proceed? Firstly... "with caution".
It is important to be aware that the customs and culture are different on the Med to the rest of Northern Europe so it is always best that you know a little about the buying process. Do not worry - Sundrenched Villas will be there to assist through every step of your purchase.
Purchasing a property in Spain is very different to buying in the UK so here are some of our guidelines which we have put together for you.
Likely additional costs to the agreed purchase price are as follows:
Cash purchase (a guideline figure of 10% if you do not require a mortgage on top of your purchase price)
- 10% tax, a form of V. A. T.
- 1% payable to notary.
- 1% payable to Land Registry.
Purchase via a mortgage (if you use a guideline figure of between 12-14% for all of your fee’s and taxes if you require a mortgage on top of your purchase price). Nb Guidelines only:-
- All the expenses mentioned above, plus
- 1% commission to bank for looking at application.
- 1% tax registration of mortgage.
- 1% tax notary fee associated with mortgage.
- Compulsory survey, 250 - 350 euros,
- Compulsory household building insurance.
- Non-obligatory mortgage protection insurance in case of death, loss of employment or injury leading to being unable to work.
Sundrenched villas can introduce you to the bank and assist you with your mortgage application.
- Please note though that these are MAXIMUM costs, in some cases where a mortgage is involved this can vary from bank to bank.
- An additional point to bear in mind is when a non resident sells, if he doesn’t have his “Tarjeta de Residencia”, the notary retains (for the tax authorities) a total of 3 to 5% of the sale price on the escritura, this is to cover any possible tax liabilities and after 3-9 months all or part of this money will be returned to the seller. Sundrenchedvillas can assist you with this
Assuming that your "dream property" has been found by us, what is the next step?
Caveat Emptor: let the buyer be aware. Before signing a purchase / sale contract and handing over a hard earned deposit, Sundrenchedvillas insist on seeing a copy of the Title Deed (Escritura or even better a “Copia Simple”, this will show if there are any debts or embargoes on the property. We can do this for you!
Where one has to be careful is with change of user, new roads etc in the area. The notary here will only look at the land registration side and confirm that there are no debts associated with the property, and register the property at the Land Registry. He or she will NOT inform you that a new motorway, road etc could be going past your property.
It is very important to go to the Town Hall and ask to see planning status for the area, is the lovely agricultural area where your dream house is located subject to a change of planning law and is a big commercial factory going to be pouring out fumes, 24 hours a day in a year’s time? Is that lovely view of the valley going to be lost to the view of other properties being built around you? This information is readily available in the Town Hall.
Once again Sundrenched Villas can help!
Assuming that the “Copia Simple” is fine and you are ready to pay a deposit and sign a purchase and sales contract, how much is a normal deposit?
Usually 10% of the agreed purchase price but you can leave a holding deposit prior to organizing the payment of the full deposit as obviously people do not carry thousands of pounds on their person.
Sundrenched Villas will guide you through this.
Is this returnable to me if I do not go ahead?
This is a difficult question to answer as it depends on the circumstances. The best type of contract is a “Contrato de Aras”, this stipulates:
- The buyer will lose his deposit if he or she fails to complete due to a change of mind or if their partner runs off with a waiter. A clause can be inserted covering other possible reasons for failing to complete, mortgage refusal, property being let to tenants who refuse to move etc.
- To protect the purchaser against heavy costs arranging mortgage etc and then the seller changing their mind, the seller promises to return an amount equal to DOUBLE the deposit if they decide not to sell.
Once this transaction goes through normally in an estate agents office or Lawyers office, a date is agreed when the deal will be finalised at the Notary office. Some days before the agreed date, a copy of the Escritura, passports, identity cards etc are left with the notary so that the contracts may be drawn up. This is when you will need a NIE number (its like a national insurance number) which Sundrenched Villas will organize for you FREE of charge if a property is purchased through them. Nb all persons going on the Deeds will need a NIE number.
On the day, the contracts are handed over to the parties concerned, seller, buyer and bank manager, if a mortgage is involved. In the case of the buyer or seller not being Spanish, the documents have to be officially translated into the native language before signing. As a non-resident you would arequire a native Fiscal representive, we can aassist you with this matter.
Sundrenched Villas can organize an Independent translator FREE of charge if a property is purchased through them.
What else do we do for our clients?
We make sure that all the outstanding bills have been paid up to date by asking the seller for their last Utility bills, SUMA bill (rates) etc.
We assist you in finding the right mortgage for you and help you open a bank account here in Spain. We can even help you with the transfers.
We introduce you to a Fiscal representative (this is a company who will look after any taxes for you and represent your deeds if you are a Non Resident). This company will also changeover all of your utility bills etc.
We can introduce you to lawyers here in Spain.
Sundrenched Villas will guide you through every step of your purchase and beyond. Any questions - please ask as we will only be to happy to assist you.