3 Bedroom Villa in Montgo, Javea
The following is a general guide to purchasing new and resale property in Spain. However, this guide does not attempt to cover all legal and financial points and prospective purchasers are recommended to seek professional advice.
As in many EU. countries property in Spain is registered on a property register.
When you have decided upon the property to purchase, the agreement will normally be contained in a private contract. The document should contain details of the agreed purchase price; payment of deposit; provision for payment of the balance of the purchase monies; any extras that you have agreed to purchase and the intended date for completion together with all other relevant terms and conditions.
Once you have paid your deposit (usually 10%, depending on time between initial contract and completion) there is then a binding agreement between both Buyer and Seller. A specific agreement (called arras) may be entered into between Seller and Buyer, where either party may rescind the contract, the Seller returning double the deposit or the Buyer losing the deposit.
The Community of Owners
When there is common ownership or sharing of facilities between owners, in every development in Spain a Community of Owners must be established through which community charges can be shared. If your development is contained in an apartment block then the law is that relating to the Horizontal Division (“Ley de la Propiedad Horizontal”).
If you are purchasing in a new development it is essential that both the Deed of Horizontal Division and the rules of the Community have been explained to you and approved on your behalf as they are very important contributions to your future enjoyment of the property.
Conveyance (Escritura de Compraventa)
The sale and purchase of all property in Spain requires to be registered in the Land Registry. They maintain details of the
property and record financial charges and other matters which may affect the title.
The Notary – el Notario – prepares the Conveyance – la Escritura – from the information supplied to him by the Seller or his lawyer – el Abogado . He will check compliance with Spanish law. However, the Notary does not check the title to the property, although he will make a check at the Land Registry immediately prior to the signing of the Escritura to ensure that there are no undisclosed charges on the property. Before the completion the Notary will check to ensure that no adverse entries have been made beyond those disclosed or to which the purchase may be subject. Once the formalities have been completed before the Notary, the Escritura Publica must be delivered to the Land Registry for the title to be recorded in the Registry of Property – Registro de la Propiedad. Before doing so, however, it is necessary to ensure that all taxes have been paid.
The total expenses incurred in the purchase amount to approximately 12% of the purchase price:
ITP (Property Transfer Tax) is levied on the purchase of a property which has already been subject to previous sales and transactions, instead of VAT. This is currently 10% (as of January 2014) of the value to be declared on the deed.
Notary, Land Registry and legal fees will add approximately a further 2-3%. These are calculated on a scale according to the declared value of the property.
New Builds & Plots
Value Added Tax (IVA) is applicable when purchasing a newly constructed property or a property which is being sold for the first time by a developer.
Selling In Spain
Particularly if you are a property owner on the Montgo, please come to us to market your property. As we are the only estate agent on the Montgo, prospective purchasers specifically looking for property in the area come to us first. We aim to provide the best selection of properties for sale on the Montgo, Valls and surrounding areas.
We will give you an honest and realistic valuation based on the current market and our specific knowledge of the area.
Your property will be extensively marketed by us and additionally, due to our relationships with other leading estate agents in the area, we can assure you of maximum coverage. Please use the form on the contact us page to request a valuation.
When buying or selling a property overseas, one of the most important factors to consider is how to exchange your currency. It is as important as negotiating the price.
Purchasers of property abroad are always keen to negotiate a good price, but most fail to realise that they can also achieve significant savings by receiving the best currency exchange rates.
Whilst the natural inclination is to go to your local High Street bank to transfer funds abroad, this is usually a fairly expensive way of doing it. Exchange rates and commissions provided by high street banks are significantly less favourable than those offered by our specialist foreign exchange partners.
Our currency partner can help you achieve commercial exchange rates, have tools available to protect you from adverse exchange rate movements and will make the whole process simple and straightforward from start to finish.
Please ask and we will be happy to supply contact details.