Steps to purchasing a property

4 Febbraio, 2019

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.

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