Once a client has decided to purchase a property the steps to follow are:
•RESERVATION FEE: (Optional) a fee sometimes paid by the buyer to reserve the property. The purpose of the reservation fee is to demonstrate to the seller a genuine interest to acquire the property and to proceed to the next phase of the purchase, i.e. price negotiating and definition of a time frame for signing the title deed. If there is no agreement among the interested parties this Reservation Fee is returned to the buyer. If the buyer and seller arrive at an agreement, the money paid for the Reservation Fee automatically is discounted from the property purchase price, becoming part of the payment of the “ARRAS PENITENCIALES”.
• CONTRACT OF “ARRAS PENITENCIALES”: this is a sum equal to 10% of the property purchase price that the buyer must pay when signing the contract to purchase the property. At this initial signing the final property purchase price and the signing date of the title deed are agreed. If the buyer fails to then sign the title deed on this agreed date they are liable to lose the full ‘Arras Penitenciales’ sum paid. If the seller on the other hand fails to sign the title deed by the agreed date, they are liable to return to the buyer double the ‘Arras Penitenciales’ sum.
•OFFICIAL SIGNING OF THE TITLE DEED: This contract is signed between the buyer and the seller with an official notary present. On the occasion of this signing the total property purchase price is paid by the buyer to the seller, and the possession of the property is handed over to the buyer.
• Note: The buyer should add approximately 9% to the purchase price for payment of taxes required by Spanish legislation. These taxes must be paid to the official notary at the same time as the signing of the title deed.
Property buyers and sellers will be advised by our team of professionals from the moment of an initial enquiry right through to the official signing of the title deed.
The legal department of our company will oversee:
- creation and editing the contracts of the reservation fee and the “arras pentenciales”
- verification of the property details in the official property registry
- co-ordination with banks and registry offices the dates of signings and the payment pending
- organising all documentation necessary to proceed to the official signing of the title deed (IBI, certificates of administrator…)
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