How To Buy Property In Spain - More Tips

In previous posts we have been looking at some of the pitfalls to beware of in buying property in Spain, and suggestions about choosing the right property for YOU.

Once you have picked your property and (excuse the repetition but it's so important) double and triple-checked that there are no legal problems that could cause you to lose the house, you're ready to make the purchase.

In Spain there are initial charges that have to be paid up front. These include transfer tax, stamp duty, fees to the notary public who supervises the sale, and payment for name change on the title deed. Allow about 10 percent to cover these.

You also have to pay a 10 percent deposit to the vendor. Once this is done, the sale is legally binding on both sides. If you pull out, you lose your deposit. If the vendor pulls out, he/she not only has to repay the deposit but pay you an additional 10 percent.

If you need a mortgage, it is usually not too difficult for foreigners to arrange one with a Spanish bank. Another possibility is to refinance your existing property.

Your lawyer then draws up a contract which includes details of the sale and sets a completion day. (Remember what we mentioned in a previous post - do NOT agree to any request by the vendor to enter a smaller purchase price in the contract to help the vendor pay less tax.) Between now and completion day, the lawyer will be doing all the legal checks.

On completion day, you and the vendor meet in the presence of the notary public (notario). You must bring the balance of the payment with you, either as a banker's draft or in cash. Once the notario is satisfied that all is in order, he or she will disappear with the contract and return in about 20 minutes with the stamped copies. Your dream property is now yours!

If you have carefully followed all these tips about how to buy property in Spain, your new home should be suitable for you in every way AND should be free of any legal traps and pitfalls. So there's no reason you shouldn't be able to enjoy it for the rest of your life!

You can start right away by looking at some of the gorgeous Spanish properties at http://www.bizwrite.co.uk/realestate/overseasproperty.html or http://www.bizwrite.co.uk/realestate/propertyabroad.html If you're in the USA and would like to find out how to refinance your existing property or get a home equity loan, come and visit http://www.bizwrite.co.uk/realestate/lending.html