buy property 1

Here in Mallorca it is the seller that pays any commission fees to the agent but before a sale can be accepted the seller has to present the following documents for verification:

Original or complete copy of the public deed of sale.

Certificate of title, which displays any burdens and debts.

If the seller is not the owner of the property, they must present a power of attorney which authorises them to act in the name of the properties registered owner.

Contracts for the supply of water, electricity, gas and other contracts of suppliers, together with the most recent payment documents.

Payment documents of the most recently paid IBI (Spanish property tax)

When purchasing a property that is part of a community of owners, an authorised certification that there are no debts to any third parties needs to be provided by the community administration.

The seller must provide a detailed and signed inventory list of furniture, electrical appliances and installations included in the sale.

Application for a NIE (Número de Identidad de Extranjeros)

A current Energy Performance Certificate required at the notary on the day of signing

If the vendor is a Spanish tax paying resident they will need to apply at the authorities for a M02 document, this will avoid the 3% charge withheld on capital gains tax.

Reserve contract / Option to buy

This is a private reservation contract in which the seller is legally bound not to sell the property to any other third party during an agreed amount of time.
In return the buyer makes a down-payment, usually around 10% of the agreed purchase price.

This type of contract is especially convenient for those who need more time to obtain financing and wish to reserve the property.
This legal regulation specifies that in the case of a breach of contract a certain amount of conscience money must be paid by the liable party.
If the buyer cannot guarantee the financing and consequently is unable to go through with the purchase, they lose the down-payment.
On the other hand, if the seller fails to comply with the signed contract, e.g. by finding another buyer who is prepared to pay more, they have to pay the buyer double the amount of the down-payment as compensation.

A reserve contract gives security to the buyer while serving as a guarantee that the seller reserves the property until the stipulated purchase/transfer date.

Puplic Deed of Sale / Escritura

What is commonly known as “Escritura” is a notarised sales contract which is not a requirement for a legal transfer of title, but is necessary for the registration in the Spanish property register.

The Spanish notary simply notarises what both parties state and that the seller is currently registered as the owner.

The notary then actions the various taxes to be paid and sends the updated information to the property registrar to complete the sale.