To buy a property you need an NIE number. This is a Spanish identification number for foreigners. The NIE number is normally applied for in Spain. New procedures with online booking are being introduced. They differ from place to place. You can also apply at one of the embassies in the Nordic countries. There it can take up to a month, and it is then valid for only three months from the date of issue. You can also apply by power of attorney in connection with the purchase.
Once the property you wish to buy has been found, a reservation contract is normally drawn up to take the property off the market.
Most commonly, €3,000 is paid at this point.
Once the reservation agreement has been signed and the deposit paid, the next step is to sign the purchase contract. This contract sets out the terms that will later appear in the title deed: the price, a description of the property, the payment terms, the buyer and the seller and so on. Where possible it should also state the date on which the title deed is to be signed at the notary’s office. The property is transferred to the buyer at that point.
When the contract is signed, 10 % of the purchase price minus the reservation fee is normally paid.
The remaining amount is paid when the title deed is signed at the notary’s office on the completion date agreed between buyer and seller.
Before the contract is signed, proper checks should be carried out on the property to be bought to make sure everything is in order. Among other things, you must obtain a certificate (Nota Simple) from the land registry (Registro de la Propiedad). The primary function of the land registry is to provide reliable information before contracts are signed.
If the property forms part of a residents’ association, a comunidad, the seller must hand over a certificate, issued by the association’s administrator, stating whether there are any debts. The certificate must also show whether the association has approved expenditure such as the installation of a lift, renovation of the facade and so on, which each property owner has to pay for.
It is important that there are no debts for the year in which you buy or for the previous year, since the new owner would then have to cover those costs.
In the case of a house with land, you should also go to the town planning department, the Departamento de Urbanismo del Ayuntamiento, at the town hall to apply for a certificate proving that everything is in order with the property.
This certificate assures the buyer that the land is legal, that the property is no larger than is lawful, and that there are no ongoing legal proceedings against the property.
An important point to bear in mind is the coastal law (Ley de Costas). If there is any suspicion that a property is affected by the coastal law, a certificate should be ordered from the Dirección General de Costas. The certificate states whether the property is affected or not, and if so what the consequences are for the property.
Another thing to establish is whether the property is let. If there is a tenant with a long-term contract, that person may have the right to stay in the property for five years from the start of the tenancy agreement.
Click here for information about our PEACE-OF-MIND PACKAGE.
Information about the costs of buying, such as taxes, fees, agents, arranging a loan and so on, can be found under PURCHASE COSTS.