When looking to buy a house it is a good idea to have a sensible price range in mind especially if you will be requiring a mortgage to help with the purchase. By speaking to a mortgage lender in Spain or even one of the estate agents, you will be able to work out just how much budget you have to work with. You must also factor into your budge the additional costs such as properties taxes and legal fees. The deposit for the home is often 5 or 10% of the sales value of the home, however Spanish mortgage lenders will usually only lend a maximum of 70% of the purchase price to non-residents, so you may need to budget for a higher deposit. Property and land taxes are around 7% of the purchase price of the property and notary and property registration fees will have to be added, although these are not set prices, they will vary according to the purchase price of the home.

Once a home is found and an offer has been accepted there is then the need to complete a contract (opción de compra). The opción de compra is drafted by either the seller or the agent and will always be in Spanish, however it is possible to have an English translation as well if you need one. If there is to be a mortgage on the property then the mortgage holder or holder’s names will have to be on the contract. This means that if a husband and wife or two friends take out a joint mortgage then the property will have to be in both names and not just one.

As the opción de compra is a legally binding contract it is wise to consult a notary or solicitor prior to signing the document. The document should also include certain other information such as a full description of the property including the total land area and building size, purchase price with a breakdown of who will be paying what fees. The sales contract should also include an inventory of every item included with the sale such as fixtures and fittings, the details of the sales agent and any let out clauses or penalties to be incurred by either party if the sale does not go ahead.

Let out clauses (clause crio) will protect the deposit paid by the purchaser when making the agreement to buy the property. The clauses will include ensuring that the purchaser’s agreement is subject to the purchaser obtaining a mortgage (if applicable), other clauses could be that any repairs that need doing are the vendors responsibility prior to the sale being completed. These clauses are very similar to those that would also be used in other countries such as the UK. The day the contract is signed would be the day the purchaser pays the deposit.

Ensuring all has gone well, a mortgage has been secured and any repairs or other issues have been rectified then the purchase completion can take place. The buyer should instruct the notary to request the funds to complete the purchase from the lender. The funds need to be in the buyers Spanish bank account by the date set for completion. The building insurance policy must also be set up before the completion date as the buyer will need to provide proof on the date of completion that this is done and be able to provide the insurance details.

If the buyer cannot be there for the signing of the final paperwork it is possible to ask a friend or trusted person to be their power of attorney (a poder). This will authorise them to act on the buyers behalf. The final deed of sale (Escritura) will be signed by the buyer (or their representative), the notary and the vendor. Once the paperwork is signed and witnessed it is then time to pay all sums owing including for the property, the taxes and the land registry fees. The original deeds of the property will be given to the notary and the new deeds can be collected.

If the home is a resale property then the contract you have will be with the current owner, however if it is a new build then the contract will be with the company who is building the property or the property developers. If it is land you are buying then the process can be much more complicated that buying an already built home.

Finding a lawyer is fairly easy in Spain as this is a regulated profession, but each region will have its own governing body. The details of each of these can be found in the local yellow pages. The lawyer will send all the relevant paperwork to the land registry for the change of ownership.