What are the key elements of property law in Spain when you are buying an apartment or villa?
The legal and property documents that you can expect to look at when you are buying a property in Spain are:
Due diligence report
This report occurs early in the buying process and is requested by the purchaser via their solicitor. The report provides evidence that there is no immediate impediment while the transaction should not progress. Evidence is typically provided of property title, debt over the property, charges, third-party rights, administrative licenses, permits and certificates to support any changes to the property.
Purchase contract
Your solicitor should always provide an original copy of the purchase contract plus a translation in your native language. The contract is an greement between buyer and seller. It contains the main terms of the transaction (transfer of ownership, the agreed price and any conditions or events that must be fulfilled before completion). The purchase agreement may be replaced by an option to purchase, granting the beneficiary the right to proceed with the purchase of the property within an agreed period of time.
Transfer deed to be executed before a notary public
When is the sale legally binding?
The parties are legally bound to purchase and sale, respectively, with the execution of the sale and purchase agreement. The penalties for either party pulling out at this stage are big to avoid either parties having second thoughts.
Which party accepts what costs connect to a property transaction?
Buyer
- Transfer Tax or VAT, and stamp duty
- Legal, Notary and registry fees
- Agent’s fees
- Due diligence costs
Seller
- Taxes accruing on the sale of the asset
- Adviser fees
- The seller’s due diligence costs (if applicable)