How to buy safely in Spain.

This is how we recommend you buy in Andalucia and how you will buy through Alficasa

We NEVER expose our clients to any risk.

If you see a property you wish to purchase and agree on a price with the vendor to take this off the market a small deposit is required.

This deposit is wholly refundable subject to satisfactory paperwork this means
ESCRITURA - FULL TITLE DEEDS
being gained for the property.

Why is this so important?

Without an escritura you cannot immediately mortgage a property. As times are changing there is much less selling through private contract ie COMPRAVENTA. This happened in the past to avoid paying transfer tax but now people want to obtain deeds. It is not illegal to purchase through private contract however your property needs to be registered with the land registry to be seen as existing and for banks something they can lend to the value of.

There is a lot of help now from the notaries, catastro and land registry so more often than not so long as the rates have been paid on the property (IBI) and the house has never been inscribed you can inscribe it within as little as a few weeks.
Your life could change tomorrow and liquidating or borrowing on your asset is so much easier if your paperwork is up to date.

Here are the three stages:

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1. Holding deposit 1% or min of 500 euros

This deposit of XXX€ is given subject to
Satisfactory Paperwork for the property.
This deposit is wholly refundable if there is any discrepancy whatsoever concerning the deeds for the property.
You sign & the vendors sign

We can also add any other condition e.g.
- Subject to satisfactory survey.
- Subject to being able to mortgage the property.

This gives us at least 2 weeks for your lawyer to check all the paperwork.
If in this time all is well and the conditions are met we continue to the next stage.

If however the lawyer encounters a problem that means the conditions are not met you receive a refund in full.
If however you change your mind it is unfair to ask for a refund as the property has been taken off the market for you and the vendor may has forgone the opportunity to sell to another in this time.

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2. Signing of a private sales contract

Now we know that the property is able to be purchased legally free from debt or any encumbrance your lawyer will write a contract where all the terms and conditions are laid out and on signing a solid agreement is laid down between the two parties. Here normally the amount of 10% of the purchase price is paid.
This money is only refundable now if the vendor does not or cannot fulfil any of the terms he has agreed to.

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3. Signing of the Escritura.

This is carried out in the presence of the notary. You come along with the remaining sum which must be in the form of a bank cheque for the total amount from your bank account. If non resident this must be accompanied by a certificate from the bank to confirm your fiscal status. The notary will only sign if they are confident that all the documentation is correct.

If you follow this procedure you will buy safely and without risk of any loss

Never pay over large sums of money initially.
Never allow anyone to translate for you that could be bias.
Where possible choose a lawyer that speaks your language.
Never sign anything you do not fully understand!!