The procedure for buying or selling a property in Spain is quite different to the one in the UK and it is for this reason that it’s important to have a totally independent solicitor from the other parties, representing your interests at the transaction. The main aspects of the conveyance are:
- General advice to you about who should be made the legal owner of the property to minimise tax and inheritance problems.
- Advice about ‘declared values’.
- Advice about your liability to taxes and other expenses in connection with the purchase.
- Obtaining proof of ownership from seller.
- Where appropriate, obtaining proof of planning status from seller.
- Where appropriate, obtaining documents about any ‘Condominium’ or ‘Community of Property Owners’ from seller.
- Land Registry check to establish the current ownership of the property.
- Checking that the property will, under your contract, be sold free of mortgages, charges and debts, or advising you of any restrictions to your contractual rights to unimpeded title.
- Where appropriate, checking the property benefits from all necessary guarantees.
- Obtaining the bank guarantee of the amounts you paid the developer.
- Examining all documentation supplied.
- Arranging for the completion of the purchase by the signing of the necessary Final Contract/Deed of Sale.
- Arranging for final searches to be carried out to ensure that the property remains free of debts and charges up to the point of sale to you
- Arranging for the payment of the fees and taxes due in respect of your purchase.
- Arranging for the registration of your title at the Local Land Registry.
The standard fees for buying/selling a Spanish property are 1% of the price of the property, exclusive of VAT, with a minimum of £1,500.00, exclusive of VAT. Jorge Iguacel could reduce those fees in the case of expensive properties or when multiple properties are bought/sold. Please get in touch and Jorge Iguacel will inform you for each specific case.
These fees include the conveyance process, the NIE applications in Spain, the draft of the power of attorney and attendance to the signature of the deed in Spain. The legal fees will increase in the event of the transaction being complicated by unforeseen eventualities including completion being unable to take place as scheduled, which will involve extra work. These fees do not include, if required, Notary’s fees for the signature of the power of attorney, Spanish police fees for NIE number applications (currently around £9.00 per NIE application), legalisation fees at the Foreign Office, agent’s fees for the legalisations, couriers, postage fees, Land Registry’s fees, tax management fees, translation fees, architect’s fees (if any survey is required), tax payments (transfer tax for purchases, ‘plusvalia’ taxes, non resident income taxes and capital gain taxes for sales), council town’s fees (if any certification is required) and payment of any outstanding debts/taxes, accountants’ fees in the case of selling a property (for calculating non resident income taxes and capital gain taxes).
You must note that if this matter does not proceed to completion, work done and payments made up to the point remain chargeable at £280.00 per hour, exclusive of VAT.