Buying a property in Malaga & Costa del Sol with Inmobillium
Once you have decided to purchase a property in Spain, next step is for us to draw up a “Reservation Contract”
This is a standard procedure to reserve a property whilst your lawyer conducts his work (checks on the property)
The reservation specifies the basic terms and conditions of the purchase .This is a temporary reservation document which would include:
- Full name of buyer and vendor
- Price of the property
- Property address
- Date to sign a “private purchase contract”
- Other special conditions (furnished, unfurnished…)
- Deposit amount placed to reserve the property
A 6,000 Euro deposit will secure the property until the checks are being carried out by the Layer.. This deposit can be held by Inmobillium client´s account or with a lawyer of your choice. This reservation deposit is fully refundable in case your lawyer should discover any legal impediments pertaining to the said property. Should you continue with your purchase once the checks have been carried out, the 6,000 Euros will be used towards the purchase price.
Once your lawyer has conducted full and thorough checks on the property, he/she will inform you of their findings and will discuss the next step which will be moving to a private purchase contract if applicable.
PRIVATE PURCHASE CONTRACT
A private purchase contract is a contract between the buyer and the vendor. It will be prepared by your lawyer and will contain:
- The exact address and size of the property and its features as set out in the “Notal simple” Government registration of the property.
- The completion date and hand over of the keys etc
- The agreed terms and conditions as agreed buy the buyer and the vendor
The buying costs in Spain vary from 10% to 13.5% of the purchase price, broken down as follows:
- 10% IVA (VAT) on NEW properties, 8%
- 1% Notary fee ( Notarization of property cost)
- 1% Legal fees ( a fee charged by your selected lawyer to conduct the checks
- 5% Stamp Duty Tax ( A tax charged to make all documents legally effective)
- In the event that you would require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank
The completion will take place in the Notary office, the lawyer will have agreed on a date with all parties and the Notary himself.