The Purchase Process
Find a property that suits your requirements. Being in a foreign country often means that you become unduly pressured into buying a property that you don't really want. Take your time and if you don't like or want what you are looking at, make sure the agent knows it.
The holding deposit:
This is usually €1000 - €6000. It enables your Spanish lawyer to take up to 4 weeks to make sure the property is legal and that there would be no problems in completing. If you are obtaining a mortgage this is when you need to speak to a bank or your broker. You should apply for your NIE certificate and power of attorney with your lawyer. Never pay an agent cash until you obtain a receipt for the funds. You are better to pay by credit card or direct to your Spanish lawyer.
The 10%:
This means that you are contracted to purchase the property. If the vendor pulls out of the sale they would owe you double the 10% whereas, if you pulled out you would receive nothing. In this contract you can have clauses to cover any adverse valuation when obtaining a mortgage. The contract would be ´subject to suitable mortgage offer' and would be written in by your Spanish lawyer and agreed by the vendor's lawyer. Other terms and conditions can be included at this stage. The completion date will also be confirmed in this contract. If you are obtaining a mortgage it may be better to complete in 6 weeks from the date of signing to enable all valuations and searches by the bank to take place.
When you receive confirmation from Atkinson Spanish Mortgages that the loan has been approved, communication between your lawyer and the bank will be arranged by us. it is at this stage that you are to pay the Mortgage Arrangement Fee which you will have already been advised about.
Secure payment can be made by
The remainder of the funds to complete the purchase should have already been transferred to your lawyers client account. This gives them time to produce the cheques for the relevant parties involved, taxes and charges. Your lawyer, the vendor's lawyer and the bank manager, if you are purchasing by mortgage, will meet at the Notary for the signing. If you attend, your lawyer will explain the contents of the Escritura (title deed) and so will the Notary to confirm that you understand the terms of the purchase.
This is when you receive your keys for your new Spanish property. Your lawyer will give you a copy of the Escritura and the original registered in Madrid.
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