Power of Attorney
Should you not be able to be present to sign all
the necessary documentation related to the
purchase, then you may grant power of
attorney to your legal representative or to another third party. This is often wise, as travelling to Spain to sign documents can become inconvenient or mean that you miss an essential signing date through ill-health or travel disruption. The power of attorney would list all the duties that can be carried out by the third party, which may include buying and selling property, opening and administering bank accounts, applying for and accepting a mortgage, representing you with respect to utility companies and the tax authorities etc. The power of attorney would be signed before a notary public in Spain, and should cost approximately 60 euros.
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View Homes & Select THE ONE
Simply put, key to the home search process is
knowing what you’re looking for. Among
other things, that means distinguishing
between “must -haves” and “like-to-haves”. To help you to target your search and define your home preference priorities, this guide includes a Home Search Worksheet. There are many benefits to starting the search process at different real estate portals, the world’s most extensive source for property information. You can view many homes and their details, take video tours and access neighborhood info. However, it’s also important to view homes in person (inspection trip). While their property details may seem similar online, homes can actually be very different in terms of layout, design, workmanship and other aspects. In addition, you should ideally view homes with the help of an experienced and eagle-eyed raltor who’ll notice things you might miss, provide expert analysis, and act as an impartial sounding board.
Hire A Lawyer
It is highly recommended to appoint a legal
representative as early as possible in the
purchase process. Your lawyer will explain to
you the legalities involved in the purchase and also carry out the due diligences on the property, including advising you of any debts, provide you with an estimate of the annual running costs of the property and prepare all the documentation required to complete the transaction.
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Get Pre-Approved For A Loan
Generally, it is recommended that you get pre-
qualified for a loan before you start viewing
homes with the serious intention of buying.
You’ll get information about what you can afford and be able to plan accordingly. The preapproval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history. On the basis of this examination the lender will provide you with a document that details how much you can borrow to buy a home. There are three options: remortgaging your current home (i.e. taking a home equity loan), borrowing from a bank in your current country, or arranging a mortgage on your Spanish property through a Spanish lender.
Buying Process
You can purchase Spanish property very
quickly, if you are a cash buyer and you have an
NIE number. Certainly, it is not unknown for the
Spanish (in particular) to see a property and be the owner (with full access) later on the following day. However, this is not the way to proceed for any foreign buyer and you should never rush to buy – or be rushed. Rather, you must always allow your lawyer and building surveyor ample time to do their proper investigations. Indeed, never lose sight of the fact that it is far better to miss out on an amazing bargain than buy a defective property you’ll always live to regret.
Buying Cost
There are various taxes and costs associated
with the purchase of property which will add
approximately another 13% to the purchase
price! If you have a Spanish mortgage you need to add an additional cost of 2 to 4 per cent. There will also be costs for obtaining an NIE number and connecting utilities. But the ballpark above includes Transfer tax (ITP), equivalent to stamp duty, calculated on the property purchase price and between 8 and 10 per cent. It also includes the Notario’s fee of around 0.5 per cent of the purchase price, and tends to range from €300 and €1200. Land Registry fees in Spain tend to be between €400 and €600 – or 0.4 per cent of the purchase price. Legal fees are usually a percentage of the purchase price – generally 1 per cent plus VAT– but with a minimum fee. Typically this might be €1,000 to€2,000.
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