The Buying Procedure explained - 6 steps!
Once you have decided on property to buy and you have agreed on a price with the seller Lexington Realty will help you through these 6 steps!
1Initial check of the property
The so called nota simple”from the”Property Registry”will reveal if the property is free of debt, if it really belongs to the seller, and if the description of the property matches what the buyer has been informed. Lexington Realty will provide this document before any down payment is made.
2Financing the property with a mortgage
If you are buying an existing property in Spain, with mortgage this is what is going take the most time. The Spanish bank or your bank at home will ask for a number of documents. Those that have to do with the property Lexington Realty will provide. The bank will then pre-approve you, and you can safely sign the pre-agreement and pay the downpayment.
3The pre-sales contract
Until the signing of the public deed it is normal to sign a simple document with the seller in which the seller expresses their intent to transfer the property to the buyer, and the buyer expresses their intent to buy at the price and conditions agreed upon. A reservation deposit is paid ranging from 5 to 10%. The typical agreement in Spain (called”contrato de arras) is if the buyer backs out of the contract, they loose the deposit; if the seller backs out, they have to pay double. As this is a private contract, the buyer and seller may agree on anything that they ﬁnd reasonable.
4A few practical things before the purchase
If you do not already have a the so-called NIE numbers (Spanish identiﬁcation numbers) needed for opening a bank account and ﬁnally registering your property Lexington Realty will help you get these numbers. Also, we will help you open a bank account for use of transferring the funds to purchase the property and afterward for connection of the direct debit bills.
5The actual mortgage
Once the bank has a copy of the pre-agreement, they will send an appraiser (tasador) to value the property. The bank requires an appraiser to ensure that their loan to you is safe. The bank will only give you a loan equal to a determined percentage of the appraised value of the house the costs are between 300-500 euros.
Lexington Realty after sales service (link), twill make sure that the taxes are paid, that the utility contracts are transferred into your name and connected to your bank account and ﬁnally that the property has been registered and the registry oﬃce. Read more about the taxes and cost s involved.