Property checks
As part of the buying process in Spain, it is usually recommended that a lawyer is appointed to act for you. The first thing they should do is consult the Land Register, which details the property and records all financial charges made against it or any other matters that effect the title. Additionally, building permits and planning permissions should be in order and newly completed buildings must have a 'certificate of new work' and a license for the first occupation. As part of the buying process, most importantly, they should be able to verify that that the property belongs to the vendor and that they have the legal authority to sell it.

Signing of a purchase contract
The Contrato de Compra-Ventra is the contract made between the purchaser and the vendor and sets the terms under which the property will be purchased. The contract should contain details of:
* The agreed purchase price
* Payment of a deposit
* Intended date for completion together with all other relevant terms and conditions
* A declaration that the purchaser and vendor are legally allowed to buy or sell the property.

When you sign the contract you will be required to pay a deposit of around ten per cent. If needed, a specific agreement called and 'Arras' can be entered into, by which either party can back out, under certain conditions. After this has been signed, all the information will be passed onto the local notary (El Notario), who will undertake his/her own search of the Land Register and prepare the conveyance.

Purchasing off plan in Spain
When buying off plan much of the process is similar, although there are a few differences you need to be aware of. Payment for your property will be made in stages. As part of the property buying process, you will most likely pay a deposit and sign the contract to secure the plot and then make additional payments at key stages of the build. The contract should contain the timetable for the property's completion, stage payment dates, the completion date and penalties for non-completion, guarantees for building work, details of the builder's insurance policy.

One of the differences with buying in the UK to Spain is that even though you make stage payments, the builder retains ownership until the property is completed. This can cause complications when applying for a mortgage. However, as buying off plan is relatively common, many Spanish banks are happy to pre-approve mortgages and provide some kind of bridging finance to help with the payments.

Completion
The final act of sale is the signing of the deed of sale, which takes place in the notary's office. Before the deed of sale is signed, the notary checks that all the conditions contained in the contract have been fulfiled. On signing the Escritura, the purchaser will be required to pay the balance of the purchase price.

Registration
After the deed is signed, the original is lodged at the property registry office by the notary and the new owner's name is entered on the registry deed.

After all the negotiations, paperwork and anxious waiting, you can finally sit back, put your feet up and take that siesta that you have been waiting for in your new casa.

And finally
The above is a brief summary of the procedure involved in buying your home in Spain. It is designed for information purposes only and should not be taken as financial advice. You are strongly advised to obtain independent financial advice prior to entering into any contract.

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For further information:
Information based on David Hampshire's Buying a Home in Spain, published by Survival Books.

Article first published in June 2006

Photograph courtesy of Sunshine Connect