LEGAL INFORMATION

Many people buy and sell in Spain in a legal and easy manner. To make the process as simple as possible for you, it is important that you use an independent lawyer to protect your interests. This is especially so in a foreign country where the law and the language is different.

The best advise is that it is safest to ensure your lawyer checks all contracts before you sign and that all payments are made through your lawyer.

SELLING A PROPERTY

The Selling Process

The general selling process is as follows. An interested buyer pays a small part of the price as a deposit to reserve the property for an agreed time. During this time, the property is taken off the market and the buyer's lawyer will check the property paperwork. Then the buyer pays a percentage (generally 10% minus any deposit paid) to you and you both sign a private contract. This states when you will complete and what more must be done before completion. If after this you cannot complete, you will have to refund to the buyer double the amount paid. If the buyer cannot complete, you keep the amount paid.

You complete at the Notary together with the buyer, lawyers, estate agent and any mortgage lenders. You will sign the Escritura and receive the balance of payments.

Legal Services

A lawyer will provide the following important services for sellers:

Before you sell, advise how much tax you will have to pay
Sort out all the property paperwork and work with the buyer's lawyer
Make sure the private contract protects your interests and advise you to sign the private contract only when all the paperwork is ready (to ensure you do not have to refund the buyer double the amount paid to you)
Be present for the private contract and completion and if you cannot attend, sign on your behalf with a Power of Attorney
If you have a mortgage, arrange with the mortgage lender to pay this off and cancel your mortgage at the Land Registry
Cancel your name on all the utilities
To be legal all documents must be in Spanish. Many lawyers will translate documents if you need it.

Property Price

You can set the price based on the price of similar properties in your area. An estate agent can value the property based on location, size, decoration, current demand and market value. If you use more than one agent, they will normally sell at the same price to avoid competing with each other.

Estate Agents

Most estate agents will value the property, promote it, advise and support you, view with potential buyers and get all paperwork from the buyer.

Agents charge a percentage of the property value as commission. The percentage can vary and some charge a lower percentage if they are your only agent, if you have a number of properties to sell or are going to sell and buy with them.

The commission is included in the total property price to be paid by the purchaser. A percentage is normally paid when the private contract is signed and the balance on completion.

Selling an Off Plan Property

If you plan to sell an off plan property before you complete on it, talk to a lawyer about tax implications before you sell.

Costs

The taxes and costs of buying an off plan property in Spain will be around 10-12% of the full property price. They can be higher if you are getting a mortgage in Spain. Costs include legal fees, taxes, notary fees and land registry fees.