How to buy a property in Spain

HOWTOBUY APROPERTY INSPAIN

Step by step guide on how to find and purchase your dream property in Spain

CONTENT

Introduction

Property search

Engage a real estate agent

Viewing properties

Negotiation

Due diligence

Reservation

Legal

Sales Agreement

Completion

Registatrion

INTRODUCTION

Look at you, one step closer to realising your dream of owning a property in Spain. Well done!

This guide is written as an introduction to the process of purchasing a property in Spain for anyone whether you ´ re looking for an investment, to relocate or a second home.

We will show you the 10-step process you´ll have to go through.

Hope you enjoy it and if you have any questions, get in touch!

As we are based in Marbella and focused on real estate along the Costa del Sol the wording in this e-book will be focused on this area. Any cost estimates and mentioning of laws will be subject to local differences.

PROPERTY SEARCH

Begin by identifying your preferences and requirements for the property, such as location, size, amenities, and budget.

The journey of purchasing a property in Marbella typically commences with a diligent property search.

This stage involves defining your preferences, requirements, and budget.

Marbella offers a diverse range of properties, from luxurious beachfront villas to cozy apartments nestled in the town's charming old quarter.

Consider factors such as location, size, amenities, proximity to services, and the lifestyle you desire.

The search can be both exciting and challenging, given the variety of options available.

Engaging a knowledgeable real estate agent specializing in Marbella can be immensely beneficial at this stage. They have access to a vast portfolio of properties, allowing you to narrow down your choices efficiently. With their expertise, you can explore properties that align with your vision, saving you time and helping you make wellinformed decisions.

ENGAGEAREAL ESTATEAGENT

Partner with a knowledgeable and experienced real estate agent who specializes in the Marbella market. They can help you find suitable properties, provide market insights, and guide you through the entire process.

Choosing the right real estate agent is paramount in ensuring a smooth and successful property transaction in Marbella. An experienced agent with local expertise not only simplifies the process but also offers invaluable insights into the Marbella market.

Your agent will take the time to understand your specific needs and preferences, guiding you toward properties that align with your vision and budget.

They possess an in-depth knowledge of Marbella's neighborhoods, property values, and market trends, allowing them to provide you with comprehensive information to make informed decisions.

Moreover, an agent can facilitate property viewings, arrange meetings with sellers, and negotiate terms on your behalf. They act as a bridge between you and the seller, ensuring clear and effective communication throughout the transaction.

In a foreign market like Marbella, where Spanish is the primary language, having an agent who can speak both Spanish and your native language is particularly advantageous. They can help you navigate potential language barriers, ensuring all aspects of the transaction are clearly understood.

In summary, partnering with an experienced real estate agent is your key to unlocking Marbella's real estate market. Their local knowledge, negotiation skills, and ability to bridge language and cultural gaps will be instrumental in your property search journey.

VIEWING PROPERTIES

Your agent will schedule property viewings based on your preferences. Take your time to visit various properties to get a better understanding of what's available.

Once you've engaged an experienced real estate agent, the next step in buying a property in Marbella is property viewing.

This stage allows you to physically explore the options that align with your preferences and budget.

Your agent will schedule property viewings based on the criteria you've established. They will accompany you to each property, providing valuable insights into the features, neighborhood, and potential advantages or drawbacks of each option.

It's crucial to approach property viewings with a discerning eye, paying attention to the property's condition, layout, and overall suitability for your needs. Take your time during each visit, asking questions and seeking clarification on any concerns you may have.

Consider factors like proximity to amenities, public transportation, schools, and recreational areas, as these elements can significantly impact your quality of life in Marbella.

Property viewings offer a firsthand experience of the properties you're considering, helping you develop a deeper understanding of what each one has to offer. Your real estate agent will be there to provide guidance, answer questions, and assist you in making an informed decision as you move closer to finding your ideal Marbella property.

NEGOTIATION

Skilled agents can negotiate on your behalf, ensuring you get the best possible deal while avoiding common pitfalls.

After finding a property that captures your interest, the negotiation stage begins.

Your experienced real estate agent will play a crucial role in this phase. They will use their knowledge of the Marbella real estate market to negotiate terms on your behalf, aiming to secure the property at the best possible price and under favorable conditions.

Negotiations typically involve discussions on the property's price, payment schedule, and any contingencies or conditions that need to be met before the sale can proceed. Your agent will work to strike a balance between your interests and those of the seller, ensuring a fair and mutually beneficial agreement.

Negotiations in Marbella's real estate market can sometimes be complex, especially when dealing with luxury properties. Having a skilled negotiator on your side can help you navigate potential challenges and secure the property under terms that align with your goals.

Throughout this process, your agent's role is to represent your best interests, provide advice, and maintain open communication with the seller's representatives. Their negotiation skills and local market knowledge are valuable assets as you work toward finalizing the deal.

DUEDILIGENCE

Conduct a thorough due diligence process, which includes verifying property ownership, checking for any outstanding debts or legal issues, and reviewing the property's condition.

Due diligence is a critical phase in the propertybuying process, and it involves a comprehensive investigation into the property's legal, financial, and physical aspects.

This stage is vital to ensure that you are making a well-informed decision and that there are no hidden issues with the property.

Your real estate agent and lawyer will work together to conduct due diligence. This process includes verifying property ownership, checking for any outstanding debts or encumbrances on the property, confirming that all property taxes and utilities are up to date, and ensuring that the property complies with local zoning and building regulations.

Additionally, a physical inspection of the property is often carried out to assess its condition and identify any potential maintenance or repair issues.

If the property is part of a community with shared amenities, your agent may also review the community's financial health and governance.

Through due diligence, you gain a comprehensive understanding of the property's legal and physical status, allowing you to make an informed decision on whether to proceed with the purchase or negotiate further with the seller to address any identified issues.

RESERVATION ORDEPOSIT

Once you're satisfied with the property and the terms, you'll typically make a reservation payment or a deposit to secure the property. This is usually around 10% of the purchase price.

Once the negotiation and due diligence phases have been successfully completed, the next step is making a reservation payment or deposit to secure the property.

This payment is typically around 10% of the purchase price and is a sign of your commitment to the transaction.

The reservation or deposit serves as a formal agreement between you and the seller, indicating your intention to proceed with the purchase under the agreed-upon terms and conditions. It is a pivotal moment in the buying process, as it secures the property and sets the stage for the finalization of the transaction.

The reservation or deposit is held in an escrow account, typically managed by a trusted third party or your lawyer, ensuring that your funds are safeguarded until the completion of the sale. If, for any reason, the transaction does not proceed due to issues on the seller's side, your deposit is typically returned to you.

This step signifies a significant milestone in your journey to owning a property in Marbella, as it solidifies your position as the prospective buyer and sets the wheels in motion for the final stages of the transaction.

LEGAL ASSISTANCE

Hire a reputable lawyer who specializes in Spanish real estate law to review the purchase agreement, handle legal matters, and ensure a smooth transaction.

Legal assistance is a crucial aspect of buying a property in Marbella, and it involves engaging a reputable lawyer with expertise in Spanish real estate law.

Your lawyer's role is to ensure that the entire transaction adheres to legal requirements and safeguards your interests.

Your lawyer will review and, if necessary, draft the purchase agreement, known as the "Contrato de Arras." This agreement outlines all the terms and conditions of the sale, including the purchase price, payment schedule, and any contingencies. Your lawyer will ensure that these terms are fair and legally binding.

Additionally, your lawyer will conduct further legal due diligence, including verifying the property's title, checking for any outstanding debts or legal disputes related to the property, and ensuring that all required permits and licenses are in order.

On the completion date, your lawyer will accompany you to the notary's office to finalize the sale. The notary will oversee the signing of the public deed of sale, officially transferring ownership of the property to you. Your lawyer will ensure that all legal requirements are met during this process.

Having a skilled lawyer on your side provides peace of mind and ensures that your property transaction in Marbella is conducted in full compliance with Spanish law, protecting your investment and interests. Their expertise is essential in navigating the legal intricacies of real estate transactions in Spain.

SALES AGREEMENT

Sign a private purchase contract (Contrato de Arras) outlining the agreed-upon terms and conditions, including the purchase price, payment schedule, and any contingencies.

After successfully completing the negotiation, due diligence, and deposit stages, the next step is to formalize the agreement in writing through the signing of the sales agreement, known as the "Contrato de Arras."

This document outlines all the agreed-upon terms and conditions of the sale, serving as a legally binding contract between you (the buyer) and the seller.

The Contrato de Arras typically includes details such as the purchase price, payment schedule, any contingencies (such as repairs or renovations to be completed by the seller), and the agreed-upon completion date.

It is essential that both parties fully understand and agree to these terms before signing.

Once signed, the Contrato de Arras generally requires a further payment, often a percentage of the property's purchase price, to be made by the buyer.

This payment reaffirms the buyer's commitment to the transaction and is typically non-refundable should the buyer fail to proceed with the purchase.

The sales agreement is a critical step in the buying process, providing legal clarity and protection for both parties, and it sets the stage for the final transfer of ownership.

COMPLETION

On the agreed-upon completion date, the final payment is made, and the property ownership is transferred. This is usually done at a notary's office.

The completion stage marks the culmination of the property purchase process in Marbella. On the agreed-upon completion date, both the buyer and seller meet at a notary's office to finalize the transaction.

At the notary's office, the buyer and seller, along with their legal representatives, review and sign the public deed of sale, officially transferring ownership of the property from the seller to the buyer.

The notary plays a crucial role in overseeing this process, ensuring that all legal requirements are met, and the transaction is executed correctly.

Before the final signing, your lawyer will ensure that all necessary checks, including the verification of the property's title and the absence of any legal encumbrances, have been successfully completed. They will also ensure that all outstanding debts, such as property taxes and utilities, are settled.

Once the public deed is signed and notarized, the property's ownership is officially transferred to you. It is a momentous occasion, and you will typically receive the keys to your new property.

REGISTRATION

The property's title is registered in your name at the local Land Registry, officially confirming your ownership.

Following the completion of the sale, the final step is the registration of the property in your name at the local Land Registry. This registration is a crucial legal requirement in Spain and serves as conclusive evidence of your ownership rights.

Your lawyer will take care of the registration process, ensuring that all necessary documentation, including the public deed of sale and any related legal certificates, is submitted to the Land Registry. The registration process typically takes a few weeks, during which time your lawyer will monitor the progress and confirm when the property is officially registered in your name.

Once the registration is complete, you will receive a Land Registry certificate indicating your ownership. This certificate is a vital legal document that proves your rights to the property and provides security against any potential disputes regarding ownership in the future.

The registration of the property in your name is the final administrative step in the property buying process in Marbella. It solidifies your ownership and legal rights, marking the successful conclusion of your journey to becoming a property owner in this beautiful coastal town.

CONGRATULATION

YOU HAVE NOW PURCHASED A PROPERTY IN SPAIN

If you want to hear the sentence stated above, get in touch with us today!

WWW.URBANMARBELLA.COM

Wondering why you should choose us? Read the next page

Importance of Using an Experienced Real Estate Agent:

Local Expertise: An experienced agent knows the Marbella market inside and out, providing you with valuable insights on neighborhoods, property values, and market trends.

Property Selection: They can help you find properties that match your preferences and budget, potentially saving you time and effort.

Negotiation Skills: Skilled agents can negotiate on your behalf, ensuring you get the best possible deal while avoiding common pitfalls.

Legal Guidance: Real estate transactions in Spain can involve complex legal procedures. A knowledgeable agent can guide you through the legal aspects and recommend reputable legal professionals.

Language Barrier: Fluent communication in Spanish is essential for a smooth transaction. An agent can act as a language intermediary, ensuring clear communication between all parties involved.

Network: Experienced agents often have a network of professionals, including lawyers, notaries, and inspectors, to ensure a seamless buying process.

Peace of Mind: Using an agent can provide you with confidence that you're making an informed decision and navigating the intricacies of Spanish property law correctly.

Remember, buying a property is a significant investment, and having an experienced real estate agent by your side can help make the process smoother and more successful. If you have any further questions or are ready to start your property search, please feel free to ask!