Real Estate Lawyers.
Lawyers can provide legal assistance for various issues, including: wills, inheritances, commercial and labour matters, contracts, quantity claims, civil and criminal proceedings, competition law, trademarks, and trade names. Good lawyers specialized in real estate law and contracts will help you navigate the buying-selling process with ease in Marbella.
Marbella Real Estate Lawyers.
When purchasing property in Marbella, aside from your real estate agent, a crucial member of your team is your lawyer. It is essential to have a knowledgeable and competent legal professional who is well-versed in Spanish property law and is committed to safeguarding your interests throughout the entire transaction. However, selecting the best Marbella lawyers for real estate can be challenging. How do you determine which lawyer is right for you and will provide the guidance you need?
3 Reasons Why Having a Lawyer is important in Spanish Real Estate Transactions.
Acquiring a property in Spain can be a challenging and risky process, entailing numerous intricate legal aspects; and it can be overwhelming and bewildering to navigate through the complex layers of legal documents and regulations unless you possess the necessary expertise to handle them. Breaking down the transaction into manageable chunks can be helpful, but ultimately, it’s crucial to have the guidance of a skilled real estate lawyer to ensure a smooth and successful outcome.
If you’re still on the fence about whether to hire a real estate attorney for your residential property acquisition, here are three compelling reasons why they are essential:
Reason #1: Real estate lawyers ensure that you make informed decisions.
The overwhelming amount of details in real estate law makes it a complex area of law. As a prospective homebuyer, it is crucial to be well-informed and attentive to these details when making significant investments in a property that could potentially be your future home or income property; paying close attention to the fine print and intricacies of real estate law can ultimately help you make sound decisions and avoid potential legal pitfalls.
When you engage a real estate attorney for your transaction, they will meticulously review all legal documentation involved in the process, before scheduling a meeting with you to clarify each detail, ensuring that you are fully informed of the proceedings; moreover, your attorney will not only give you advice, but they will also work tirelessly to ensure that your best interests are protected throughout the deal’s closure.
Reason #2: Real estate lawyers can identify issues that you can’t.
Real estate transactions can be notoriously complicated, and attempting to navigate them without the guidance of a qualified legal expert can be a daunting task. It takes an experienced real estate attorney to expertly pore over the documents on your behalf and identify any potential issues that may arise; and without the aid of a legal expert, you may find yourself lost in the overwhelming labyrinth of details contained in a real estate purchase contract, leaving you ill-prepared to handle the complex negotiations required for a successful deal.
In what ways can a real estate attorney assist you?
- One of their primary roles is to identify any issues that may arise with the title of your property: Your title is the legal document that verifies your ownership of the property and if there are any complications with it your right to maintain ownership of the property could be in danger.
- Physical property issues: Occasionally, unforeseen challenges can arise with a property’s physical attributes, potentially damaging your investment; and you may need a legal professional to assist you in this regard and ensure that you make an informed decision because as an individual you may not have the expertise to detect and pinpoint such problems.
- Issues with your purchase contract: To ensure that all the clauses in your contract are equitable, it’s highly recommended to have a legal professional review it. Attempting to scrutinize the purchase agreement independently can be a daunting task, but with the guidance of a competent lawyer, you can feel confident in the terms of your contract
Reason #3: Real estate lawyers can give you peace of mind.
Navigating through a real estate transaction can be nerve-wracking, as it involves dealing with various parties such as agents, lenders, inspectors, etc who may not always prioritize your best interests. Therefore, having a trustworthy lawyer by your side who is committed to building a solid relationship with you can help alleviate the stress and anxiety associated with real estate transactions, allowing you to focus on the exciting prospects of acquiring or disposing of property.
By building a strong relationship with your lawyer, you’ll have a partner who is invested in your success and who can help you achieve your goals; so if you’re considering a real estate transaction, don’t hesitate to seek out guidance and support of a skilled and compassionate legal professional.
Instructing a lawyer.
LuxuryForSale.Properties recommends you use one of our Approved Lawyers that have been carefully selected and have the LuxuryForSale.Properties seal of approval.
Having paid an initial deposit, you will need a Spanish lawyer. We recommend that you select someone with local knowledge that has been approved by LuxuryForSale.Properties and who speaks your language. Your lawyer will carry out numerous checks to ensure that your chosen property is indeed owned by the person selling it and that it has been marketed correctly. Your lawyer will ensure that there are no undeclared debts owing on the property and that all service bills and taxes are paid up to date.
Using a lawyer safeguards your investment and means that when you receive ownership of your property you will not inherit any outstanding debts.
If you are purchasing an off-plan Spanish property your lawyer will ensure that the developer has an insurance policy or bank guarantee in place ensuring that should the purchase not go ahead at the fault of the developer, your money plus interest of 6% will be returned.
Typically a lawyer will charge 1% of the purchase price of your property plus VAT at 16% for his services during the sale process.
Your lawyer can arrange power of attorney should you wish a third party to sign for your property on your behalf. This can be particularly convenient if you are purchasing off-plan property as occupancy licenses can sometimes be granted weeks after your property is officially completed. Services such as water and electricity cannot be transferred into your name until licences to occupy are in place.
Buying a Property: The process.
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.
Should You Buy Illegal Property in Marbella.
Marbella is the jewel of the Costa del Sol and is backed by the beautiful mountains of Sierra Blanca which help to give the area its very own micro climate with 320 sun days athroughout the year. Marbella is offering a sophisticated and diversified lifestyle with some of the best facilities in Spain.
On the face of it that’s a very obvious question to answer and from a legal point of view you should never buy illegal Marbella properties. However there are quite a few property transactions taking place for Illegal properties in Marbella area so why?
First things first what is an illegal Marbella property?
Very simply it’s a property that never obtained a first occupation license and therefore is illegal.
Secondly what can happen to you if you buy an Illegal property without a first occupation license?
The most important factor to bear in mind is you have to be a cash buyer as it’s impossible to get a mortgage on the property. The exception to this rule is where the bank already has a mortgage on such illegal properties and will transfer it to the new buyer. Now however the banks are a lot wiser and will not lend on such properties. The most important factor for buyers of such properties is when you come to sell you can only sell to a cash buyer so selling such properties can be very difficult indeed.
Thirdly why do people continue to buy such properties?
The answer is primarily due to the fact that the majority of illegal properties are in the process of being legalized under the Marbella Town Hall plan (PGOU) with some exceptions notably River Gardens and Banana Beach that will in reality never be legalized. So at some point in the future the properties will be able to be sold without any issues. The other major reason people still buy such properties is the price that they can buy for and the location of some properties such as Los Granados de Cabopino which you just can’t buy at the prices they are currently trading hands for.
So should you buy Illegal properties in Marbella?
The advice is obviously not unless you see such an opportunity that makes sense for you but most importantly you must be aware of all the shortfalls with the major one being that you may never ever sell your property in the future.
If you want advice in making sure you don’t buy an illegal property in Marbella then please feel free to contact us at LuxuryForSale.Properties, We know the best real estate lawyers in Marbella.
LuxuryForSale.Properties Real Estate.
Collaborating with a reliable lawyer is crucial when buying your dream property in Marbella. A reputable agency can direct you toward the property that aligns with your requirements and preferences by assisting you in navigating the intricate real estate market.
LuxuryForSale.Properties offer a comprehensive range of services beyond finding you the ideal property. They also provide tax and legal advice, insurance, rental, and property management services. With a dedicated team at your disposal, they strive to ensure that all your needs are met when finding your dream property in Marbella.
LuxuryForSale.Properties offers you the maximun security as a buyer, because we have all the documentation relevant to the properties pre-vetted by experienced real estate lawyers and undertake detailed due diligence on every property we work with.