Buying a Property in Marbella: The process.
The process when buying a property in Marbella explained. At LuxuryForSale.Properties, we’re passionate about connecting you with the heart of Marbella, where the sparkling Costa del Sol embraces vibrant living and breathtaking views. Our portfolio of properties showcases a luxury collection of homes that range from contemporary mansions nestled by the golf greens, to serene sea-view villas and stylish penthouses on the prestigious Marbella Golden Mile. With us, finding your next investment isn’t just about luxury – it’s about discovering a place that feels just perfect. Dive in, and let the trusted team at LuxuryForSale.Properties guide you to your own slice of paradise in Marbella.
It is vital to be pragmatic regarding your budget. It is worth noting that luxury properties in Marbella typically come with a steeper price tag than properties in other regions. Nevertheless, it is also important to remember that Marbella provides an exceptional way of life and a superior standard of living that justifies the investment.
Make an offer:
The lawyer should visit the Property Registry to find out all the details of the property and adjust your offer accordingly. Especially, should check if there are any debts or encumbrances attached to the property. Remember in Spain, if these aren’t eliminated before doing the transfer of ownership, you risk ending up with the seller’s outstanding debts.
Make sure you’ve got your mortgage in place and ready to go.
Make a second Visit to the property, before making an offer.
Make a deposit and sign a Reservation Agreement – Contrato de Arras:
This is the first contract that is normally signed when you make a deposit for the house – common practice is 10% of the sales price. It confirms the amount you have paid as a deposit, along with pre-agreed terms and conditions. It also means the seller takes the property off the market and cannot sell it for a timeframe stipulated in the reservation agreement – Usually, 4 to 6 weeks.
Private Purchase Contract.
According to Spanish law, the Private Purchase Contract is used to reflect the agreement reached between two parties in the transaction of the sale of a property, for both new build and resale property. In order for the Private Purchase contract to be valid and of use to both parties it must include a series of compulsory requirements. Apart from these requirements, both parties can freely agree all the terms they consider should be reflected in the private purchase contract. However there are three different types of Private Contract: These are known as the Purchase Deposit Contract, the Option Contract, and the actual Private Purchase Contract. All three have the same requirements mentioned above, but each binds the parties legally in a different way to the agreement reached.
Sign the title deed:
The registered title deeds of the property are always signed at a Spanish Notary. This is the official document that certifies that the property has been sold and it includes the details of the buyer and the seller, description of the property that has been sold and its price. Once the title deeds are signed they must be registered at the Property Registry.
Tips: Before signing the property title deeds the Lawyer will make sure that the seller has no debts with the Town Hall with unpaid IBI (Property tax) and garbage fees as well as no debt with the neighbours’ community, mortgages and that the property has a valid habitation permit.
Transaction fees and taxes:
Did you know purchasing a property in Spain involves specific taxes and fees? It is crucial to understand what these are before making a purchase.
There are transaction fees and taxes which must be paid when buying and selling a property in Spain – ITP property Transfer and VAT tax, capital gains tax, notary fees, registration fees at the property register and mortgage fees (if applicable).
Real Estate transactions fees.
Once your agent has agreed between the parties the commercial elements of a transaction, these lawyers will represent the interests of their clients in assuring a transaction which is as “risk free” as it can possibly be, by performing a rigid “due diligence” of all of the elements involved with respect to the legality and ownership of the property. Then they will prepare, together with the lawyer of the other party, a contract that will fairly represent the commercial agreement reached, while incorporating all possible and reasonable safeguards within the contract itself.
They will also advise you on tax issues, residency permits and requirements, and other obligations involved in buying, selling and owning property in Spain. Lawyers in Spain should be registered with the local bar association (Colegio de Abogados). They will have a registration number that you can ask for and then verify with the bar association. Naturally, registration does not guarantee honesty or competence, but it is a good minimum standard to insist on. You can find a list of all the bar associations at the national website for Spanish lawyers, Abogacía Española.
Legal costs: A percentage of around 1% should be envisaged or a fixed rate.
Transfer amenities to your name:
The energy companies and any other service provider should be notified that you are the new owner and will be paying the bills from now on. This requires a transfer of the name from the seller to you for all amenities related to the property.
– The Property Registry.
The Property Registry/ Registro de la Propiedad, is the authority where all properties and their title deeds are registered. This is an extremely important office for the purchaser of a property in Spain, because this is where you will be able to find all the information about the property with a true description of it detailing area and owner and more importantly if there are any charges, liens or mortgages against the property. You can check all of this with the nota simple who will supply a report provided by the Property Registry.
What if I need a mortgage?
Ensure your finances are in order before signing a contract. The contract remains binding even if you don’t get funding, risking the loss of deposit money. If using a mortgage, ensure it’s approved before committing to purchase.
Determine your payment method:
This will also affect your total budget and there are various ways to pay for your new home:
o One-off payment – Paying the total price of the property in one lump sum to the seller.
o Mortgage – Getting a mortgage, either from a Spanish bank or from your bank back home, using the property as a guarantee is the most common way of paying for the purchase of a property.
o Mortgage subrogation – Changing the name of the debtor on an existing mortgage on the property to your name is another option.
Guarantees for Purchasing Off-Plan Properties
When purchasing an off-plan property in Marbella, the developer must provide insurance coverage or bank guarantees to protect payments made before completion. Additionally, the developer must provide proof of 10-year building insurance coverage upon completion to safeguard against any potential damage caused by structural issues such as earthwork or support beams.
We highly recommend selecting an independent solicitor who specializes in Spanish land law and is based in Marbella. Ensuring that the solicitor solely works for you and has no ties or interests with an agent or developer is essential.
LuxuryForSale.Properties Real Estate.
We at LuxuryForSale.Properties offer luxury properties in prime locations: Beachfront / First line golf properties in Marbella, Costa del Sol and other Spanish “prime locations”. Crafted by renowned architects, each of these exceptional homes sets a new trend, effortlessly blending the classic, the avant-garde, the modern, and the sublime. In doing so, they established a new benchmark for the highest standard of luxury living in Marbella.