The Buying Process

Welcome to your guide for the home buying process in Spain, specifically in the provinces of Alicante and Murcia.

At La Casa de Sueños, we are dedicated to guiding you through each step to ensure a smooth and successful property purchase.

 

1. Preparation and Research

• What are you looking for: Before we start our search and to help you the best we can, the first step is to get to know you and your personal needs.
• Finances: Establish a clear budget and consider mortgage options if needed.
• Location Selection: Decide on the desired location and type of property you are looking for.

 

2. Property Viewing and Negotiation

• Viewings: We plan your visit and arrange viewings of properties that fits your specific needs.
• Negotiation: We assist you in negotiating the price and terms.

 

3. Preliminary Purchase Agreement

• Reservation Contract: Once you find your dream home, you sign a reservation contract and pay a deposit (usually between € 3000 and € 6000).
• Due Diligence: Your lawyer checks the legal status of the property, including ownership, debts, and building permits.
• Paying in installments - Only applicable for New Builds: After signing the reservation agreement and paying the deposit, the remaining purchase price is paid in installments during the construction phase. Typically, 40% to 50% of the purchase price is paid within 1 to 6 months, with the balance due upon property transfer. These terms, secured under a bank guarantee, ensure your deposit is refunded if the construction is not completed or the developer becomes insolvent. Your lawyer will verify all documents and guarantees.

 

4. Mortgage Application (if applicable)

• Documents: Gather all necessary documents such as income statements and identification.
• Evaluation: The bank evaluates the property and your financial situation before approving the mortgage.

 

5. Purchase Contract

• Contrato de Arras: A binding purchase contract is drafted and signed.
• Payment: The deposit(usually 10% of the purchase price) will be paid and is deducted from the purchase price.

 

6. Notarial Deed and Transfer

• Notarial Deed (Escritura Pública): Both parties sign the deed at the notary's office.
• Registration: The notary registers the deed with the Land Registry.
• Final Payment: You pay the remaining amount including taxes and notary fees.

 

7. Post-Transfer

• Taxes and Fees: Pay all associated taxes and fees, such as transfer tax, notary fees, and registry fees.

 

Specific Purchase Costs

 

For New Builds

• VAT (IVA): 10% of the purchase price.
• Stamp Duty (AJD): 1.5% of the purchase price.
• Notary Fees: Between €800 and €1,500.
• Registration Fees: Between €400 and €700.
• Lawyer Fees: Between 1% and 2% of the purchase price.

 

For Resales

• Transfer Tax (ITP): Varies between 6% and 10% of the purchase price, depending on the region.
• Notary Fees: Between €800 and €1,500.
• Registration Fees: Between €400 and €700.
• Lawyer Fees: Between 1% and 2% of the purchase price.

 

At La Casa de Sueños, we are here to support you at every step. Leave your details below for a free consultation and discover how we can make your dream home in Spain a reality.