Buying Property in Spain

The Spanish Property Register ensures that you explore all the possibilities when buying a property in Spain.

Anyone familiar with purchasing property in the UK will understand the processes that are in place to safeguard the purchaser. When dealing in a foreign country and currency these become increasingly important, however these services are not considered standard practice in the Spanish property market. Many people looking for property in Spain are not aware of the potential downfalls of investing in a foreign country. It is all too easy to get carried away and make decisions that could be potentially disastrous.

The Spanish Property Register investigates the three main areas where it is vital that you have accurate information before making any commitment:

• The widest range of property available to help you in selecting your property in an organised and considered way
  
• Legal services and local searches beyond anything normally available
  
• Certified structural surveys and independent valuations

The Spanish Property Register will save you time and money, and give you the peace of mind that your investment has been thoroughly researched.

Finding the Property
The Spanish Property Register will scan all the properties on the market to match the requirements of the client. The client then receives these via email and has the opportunity to select from a shortlist of properties they consider appropriate.

Initial search criteria would include:

1. Budget
   
2. Size of property required
   
3. Location
   
4. Individual circumstances, establishing personal preferences and priorities
   
5. Use of the property, holiday home/permanent home

Once we have established how many properties are available that fit the given criteria, we can forward the property details for review. The client can then exclude properties of lesser interest and start building a selection of properties that can be organised into a future viewing itinerary. The client feedback helps us better understand their requirements and we can widen or adjust the search if necessary.

Client Viewing Itinerary
Once the client is happy there are enough properties to view to warrant a visit, we arrange an itinerary with back-to-back viewings making the best time of the client's time. As part of an itinerary we will prepare background information as to the pros and cons of each property so as to be fully prepared prior to the viewing. During the visit, we can also assist with securing their NIE or fiscal numbers and opening a Spanish bank account - both necessary for the purchase of a property.

We accompany the client during the property viewings with the agents. Our role is to keep a perspective and assist the client assess the relative merits of each property. It could be useful to test to see if there is any flexibility in the price of some of the properties. Even so, once a property becomes of interest to the client, we would add our leverage to negotiate the best price, and in some cases our client's keep at a comfortable arm's length while we drive the best deal we can. At the end of each day we review the properties seen and discuss how we can get the most from the next day of viewings.

By the end of their visit, the client will have seen a large variety of properties in Spain that match their criteria. If they wish to look into a particular property in more detail we assist with our legal services, otherwise we review the search criteria and decide how we need to proceed.

Investigating the Legitimacy of the Property
When the client is satisfied that they have found the right property, we need to check to ensure that everything is in order so that the client can proceed with the purchase.

The Private Contract
Before investing time to investigate the property, the vendor will take the property off the market for an agreed period, requiring the client to pay a deposit. The private contract must protect the client in case we discover any problem with the property and ensure that the deposit is refunded in full should this be the case. Agencies that deal with our clients should accept the Spanish Property Register private contract terms and conditions, rather than our clients having to accept terms that are more favourable to the vendor.

Legal Searches
Spanish law holds the existing legal owner of a property liable for all encumbrances on the property no matter who was responsible. This means that if there is an outstanding mortgage, tax office embargo, or court charge against the property this liability will automatically transfer to the purchaser after completion. Our legal searches will check the land register to ensure the property is free of all charges.

Local Authority Searches
Customers from the UK will assume these checks are normally carried out as part of the legal process, however in Spain this is not the case. This is where many problems for purchasers commonly occur down the line. For example there has been much press coverage regarding the LRAU, or more commonly known the land grab laws, where owners have found that their property is due to be in the middle of a new development and they are required to pay for the infrastructure as a shareholder in the land.

The general plan at the local town hall will detail all future planned changes in land use and development projects in the local area. From checking the general plan, we will understand if any new developments or changes are expected, so that our client is aware how this might affect their property. The local authority searches also check potential liabilities due to the town hall, for example if the previous owners have not paid their rates, or have outstanding fines for illegal building work, etc. Any planned road widening or other infrastructure projects that could potentially claim land from the property is also checked.

Regional Searches
We extend our search to a regional level as any new urbanisations and changes of use of land proposed by the local town hall will need approval from the regional authority.

Rectification of the Escritura
Any changes that have been made to a property that are not recorded in the vendor’s escritura (deed), needs to be amended before any transaction is completed. We check that the existing escritura is accurate, and if not we can certify the changes that describe the property in better detail. Any building extensions, addition of swimming pools, changes in boundaries or other changes in the property description need to be rectified in the vendor’s escritura so that it is valid before the purchase. Otherwise, these changes may prove to be a liability in the future. Our architectural department will survey and certify these changes working with the Notary to make this process as straight forward as possible.

Certified Structural Survey
We carry out the survey whether it is necessary for any loan or mortgage to establish the condition of the property, or simply for peace of mind and as a means of safeguarding their investment. Any defects need to be uncovered and addressed before completion, or be referred to in final negotiations.

Independent Property Valuation Report
A useful reference that examines the size and type of the construction, the characteristics of the plot, the location and other aspects influencing the value of the property. Similar properties and their values in the same area are then compared to assess an accurate figure for the value. The valuation can help secure loans or a mortgage if necessary.

Preparation of Documentation for the Notary
Once all these checks have been completed, the documentation for the new escritura is provided to the Notary. Any further points in question, regarding the transaction are then discussed with the Notary before the completion date so that everything is in order.

A Personalised Service
Buying a property is a big responsibility, and at times complications occur that need careful thought. The Spanish Property Register is an accredited API, and our team has over 25 years experience dealing in the Spanish property market. We have direct contact with most of the authorities and town halls that can help solve many outstanding issues. Our clients look to us for advice on a range of issues, from the initial negotiations to beyond the completion of the property purchase.

The Spanish Property Register is unique in offering such a comprehensive range of services that look after the interests of our clients in Spain prior to, during and after the property is purchased.