Steps to purchasing a property
1. Due Dilligence:
- Reception of the conditions and documents of the purchase and beginning of the Due Diligence process.
- Study and preparation of the initial report, bu Bufete Frau, prior to Option Contract and record of compliance with laundering of capitals regulations.
- Reques, from the Land Registry, current Data Form to find out if the Property is free of any charge and to confirm the seller is the actual property owner.
- Request, to the Town Hall, if there is any Town-planning infraction and follow necessary steps in the tax land registry office.
2. Signature of the Option to Purchase contract:
- Prepration of the Option to Purchase Contract and its signature between the parties (buyer, seller and the Real Estate Agency). Payment of reservation deposit based on a % of the purchase price.
- Preparation of the PurchasePublic Deed with the notary to be signed on the completion day.
- Arrange between the parties the completion place and date to sign the Purchase Deed.
3. Closure Due Diligence process:
- Finalise Town-planning, Legal and Tax Due Diligence process.
- Delivery of the documents to the Notary: passports/NIE’s, local council taxes (IBI), certificates, reports, etc.
- Valuation of the Property and arrangements with Spanish bank in case of Mortgage.
4. Preparing for Completion:
- Preparation and writing of the Purchase Public Deed draft.
- Completion day
- Signature of the Purchase Public Deed and Payment of purchase price at the notary.
- Payment of taxes: Buyer: Transfer Tax (ITP) (8-11%) or VAT (10-21%)/ Seller: Municipal Plusvalue tax.
- End of Purchase procedure and registration of the Municipal Land Registry.
5. Post sale management:
- Annual Tax: Wealth Tax and 210 form, local council tax (IBI) and Municipal Solid Waste tax (RSU)
- Change of name on supply bills: water, electricity, gas…
- Bank orders arrangements for annual taxes and supply bills.
- Change of ownership in the Tax Land Registry Office.