Tag Archives: Spanish Property

Buying Property in Spain

Buying property in Spain is quite straight forward. There are basically 4 different stages which we have listed below for your information.
1. Reservation Deposit
2. Exchange of the private purchase contract
3. Before Completion
4. Completion

1. Reservation Deposit

Once you’ve found your ideal home you simply reserve the property with a Reservation Deposit. A deposit between 3000 – 6000 Euros is usually sufficient. The deposit is refundable if the vendors change their mind but is not refundable if you cancel. Paying the reservation deposit guarantees that the property is taken off the market and is reserved for you at the agreed fixed price. If you haven’t previously appointed a local lawyer, we will be happy to arrange one for you. They will explain the procedures for buying in Spain and all the associated costs. From now on, up to, and even after completion of the purchase, our support staff and your lawyer will take full responsibility for the entire transaction, advising you, and keeping you up to date every step of the way. Choosing the right lawyer is your guarantee that Spanish Legal requirements are met, that the property is genuinely registered in the vendor’s name and is free from any mortgage, charges or restrictions. Your lawyer will negotiate and discuss the purchase terms with the vendor’s lawyer and as well as the agreed price will include all your other requirements such as fixtures and fittings, the completion date and your preferred method of payment.

2. Exchange of the Private Purchase Contract

Once you’ve paid the reservation deposit you then have a period of up to 30 days to exchange the private purchase contract with the vendor. You can arrange for your lawyer to handle both this stage and the completion on your behalf if you are unable to attend. Before your lawyer exchanges contracts he will have completed the detailed searches and investigations at the Land Registry in respect of the property.

3. Before Completion

With a new property, before you instruct your lawyer to complete the purchase, we inspect the property and detail anything that might need putting right. Once everything is corrected and you are satisfied, the title deeds can be signed.

4. Completion

Finally, on the day set for completion you will go to the Notary Public with your lawyer to sign the Title Deed, making the final payment to the vendor who simultaneously passes you possession of the property and hands you the keys. In this way the Notary and Land Registry are acting jointly to protect and guarantee your interests.

Spanish Property

Spanish Property : The Business

A few years ago there was a Spanish law, which made it illegal for anyone to sell Spanish property or real estate unless he or she had an official Real Estate agents title and belonged to the association of real estate agents in Spain.

Spanish Property

Spanish Property

Titles were difficult to come by, only university graduates who had taken a formal course, or other professional people such as lawyers or architects were able to join this elite body of accredited specialists. All of who have had to pass an exam in order to receive their diploma.

These proud professional people are known as API’s. The API logo is displayed on the Agents office sign, on his stationary and also on his website. (API = Agente de la Propiedad Inmobiliaria)

A decade or so ago another breed of Property agents appeared on the scene, these were known as GIPE’s. (GIPE = Gestoria Inmobiliaria Propiedad EspaƱa) Would be property dealers who attended a short but comprehensive private diploma course in the Costa del Sol.

Having successfully passed the final exam they were presented with a certificate entitling them to enter the real estate business, or so they thought at the time.

Having monopolised the Spanish property business for many, many years they were not going to give in easily, nor were they prepared to allow anyone to infiltrate into their hitherto private club. So armed with their Law Books they declared war on the GIPE’s.

It was a long and bitter war, most of the GIPE’s offices were closed down by the courts and quite a few individuals went to jail for contravening these long standing laws restricting anyone other than API’s from selling property in Spain.

Spanish Property Market Today

Years passed and Spain gradually became fully integrated into the European community. As more and more foreigners arrived from other parts of Europe pressure was brought to bear in the European courts until eventually a few years ago the law was abolished.

Now as a result of this change, things went from the sublime to the ridiculous and today anyone can be an estate agent, no university degree, and no training, in fact “no previous experience necessary”!

There are now literally thousands of estate agents, many with dubious reputations, many honest and responsible, all trying to corner their own little slice of the market.