Buying Process - INDiGO Homes Marbella

STEP BY STEP BUYING PROCESS

"We have many years of experience, so let us guide you through:"

We have put together here the step by step process of purchasing property in Spain. Instead of lots of legal terms we have explained it as simply as possible as we feel that with our help, buying a property will not be stressful!

THE PURCHASING PROCESS

Once you have found the property you want to buy and the price is agreed, the first thing is that Indigo Homes Marbella will draw up the “Reservation Contract/Contrato de Arras” for you.

The Reservation Contract is a simple process and is standard when reserving a property. This will be for a period of time agreed by both parties whilst your chosen lawyer checks out everything to do with the property, commonly known as “Due Diligence”

WHAT IS IN THE RESERVATION CONTRACT?

The Reservation Contract contains the basic terms and conditions pertaining to the purchase of the chosen property. This document is then signed by both the buyer and the vendor. Please note that this document is temporary.

Details in the document would be:

Full name of buyer and the vendor
Price of the property (agreed by both parties)
Property address
Date to sign a “Private Purchase Contract” commonly known as “PPC.”
Other special conditions such as Subject to Finance ( should the buyer require a mortgage.)
Deposit amount placed to reserve the property

It is customary for a 6,000 Euro deposit to be placed either in Indigo Homes Marbella Client Account OR with the buyer´s chosen lawyer.This ensures that both parties are serious and that the property will be taken off the market and no longer for sale by the vendor. Once the deposit has been placed, the “Due Diligence” will be done by the buyer´s lawyer to make sure that there are no debts on the property and that everything is as it should be with the property.

Providing that all is well with the due diligence by your lawyer, you will then proceed to the Private Purchase Contract. The amount of the deposit is also taken off the purchase price.

WHAT IS THE NEXT STEP?

SIGNING THE PRIVATE PURCHASE CONTRACT

The “Private Purchase Contract” or the “PPC” is the contract between the buyer and the vendor. This is prepared by your lawyer and will also contain all terms and conditions such as:

A legal declaration from the vendor that he/she is legally able to sell the property
The exact address and dimensions of the property and its features as set out in the “Referencia Catastral” this is the unique reference number given to a property when it is registered at the Land Registry.
The agreed completion date and hand over of the keys.
Any other agreed terms and conditions as agreed by the buyer and the vendor, such as furniture, inventory etc.

WHAT ARE THE BUYING COSTS?

A buyer must take into consideration the costs associated with buying a property in Spain. The costs vary from 10% to 12% of the purchase price:

10% IVA (VAT) on completely new properties - New Developments
7% IVA (VAT) on resale properties
Notary approx: 650 euros for a property of 500.000€
Lawyer 1% Legal fees a fee charged by your selected lawyer to conduct the Due Diligence
Property Registration costs: Approx. 700€

NEW DEVELOPMENTS

If you have decided to purchase a property in a New Development, by law now, the developer must issue a bank guarantee for each stage payment.

Here is an example of a payment plan on an off plan property:

Deposit: 6000€ + IVA (VAT)
30% + IVA ( less the deposit amount) usually 30-45 days after deposit. The PPC will be signed at this stage
10% + IVA 12 months after the PPC
60% + IVA ( the balance) on completion of the property. If you have applied for a mortgage this payment will be with the mortgage.

MORTGAGES
HOW MUCH MORTGAGE CAN I GET?

Depending if you are a resident or non- resident, the amount that can be borrowed is up to 70% of the appraised value of the property.

For all our services, we only work with the best professionals in their field, to ensure that the purchasing process runs smoothly.

HOW CAN WE HELP?

Are you relocating to the Costa del Sol?

Do you have questions on the lifestyle, how to buy a property, remote working or schools etc?

We can help you so please feel free to ask us any questions...