Welcome to Holiday Dreams Guide for Buying. Here you will find the description of the different stages you will need to follow to buy a property in Spain. It's really not complicated but it needs of a good organization, because of its importance and significance for you and your family. The procedure takes in between 4-6 weeks if you do not need financing, and 6-8 weeks if you need it.
1. Calculate your budget: This calculation should take into account that buying a property has intrinsic costs attached wich must be considered.These expenses will also vary depending on whether you will need funding or not, and with the type of financing you are going to use. Therefore we include at this point "The Contact with the Banks". If it is a cash purchase, to be prepared with the amount for the reservation deposit (usually 10%), and if you need financing for a pre-approved agreement with your bank, so you and us can work seriously. As explained before, possibly the cheapest way it is usually to request in your own bank and over your own property.
The Buying cost is:
a) For cash buyer:
1.-) For resale properties: 10 to 12 % depending on the purchase price.
2.-) For new developments: About 13.5%
b) With funding:
1.-) Resale properties: 13.5 to 14.5 %
2.-) In new constructions: 15 to 17 %
These amounts are generally valid, but may vary according to different variables. Holiday Dreams incorporates both a buying cost and a mortgage simulator, you so you can calculate yourself your own estimate. The calculation of buying cost is very important, since this amount will need to be deducted from the total budget to know what actual amount we can count with to search for the property.
2. Find your ideal property: Viewings can often be over before you know it. So it's essential you know what you're looking for, let us knowwhich are your most important requirements, and which ones are not, and all relevant information so we can start working with solid funds to send you pretty few properties that match your expectations before you arrive. This point is extremely relevant for the success of your future viewings tour.
Select one or two of our favorite properties to confront them to our search criteria analysis, give ratings so it will help you to make the decision and finally present your offer.
3. Reservation Contract: Reached the point where the price has been negotiated and reached an agreement, will be the time to leave a reservation deposit and formalize the agreement in a contract. Holiday Dreams strongly recommends, contacting a lawyer, and we can provide the names of some independent and reputable law firms in the area, if needed.
The reservation deposit will normally be € 6,000, and from the moment when the contract is signed, it can be considered that the property is sold, and therefore it is removed from the market, and we get to the next stage.
4. Private Purchase Contract: After signing the contract, it is the time when your attorney will research to know if the property has no problem to be transmitted, or if it has irregularities, if they can be fixed. This process takes about 2-4 days.
Not having any irregularity, or having this a possible solution, is possible transfer funds to the seller, and at this point you will know that you will be the future owner of the property. To do so, a fixed agreement is made and buyers pay the rest to the 10% of the agreed price and the contract is locked. This Private Purchase Contract is legally binding to both seller and buyer.
5. Completion: The closing of the purchase takes place at the Notary's Office, where both parties or often who then have power of attorney, the possible lender bank and we can provide the names of some independent and reputable law firms in the area, if needed.
A review of the deed is made, and the notary comes in to ensure everything is done correctly. The balance of the purchase price is paid to the seller and the buyer get the keys and possession of the property. the estate agent meet, and it is signed the official property transfer.
6. Registration of Ownership: Following the signing of the property transfer, all costs, fees and transfer tax will be paid and the Title Deed of Purchase registered at the Land Registry.
Transfer of supply contracts and change of ownerchip have to be made, and it will take around two months to receive the original and registered New Title Deed of Purchase on your own name. End of The Story!