The importance of solicitors

Our basic advice is always consult a lawyer prior to purchasing new or resale property, even when buying a timeshare. The Spanish legal system is very different from the English system. Your usual English lawyer knows English law, not Spanish law.

Unfortunately, very often people purchasing property in Spain take little or no legal advice and are indeed quite "casual" about the purchase and about the signing of legal documents. They may then find there is no title to the property that it was built without planning permission etc.etc.... Whilst frauds happen, luckily they form a small part of the many thousands of transactions, which take place in Spain every year.

Having instructed a solicitor to handle the purchase, you have the reassurance that all the important aspects will be covered.

The Purchase Agreement

When you have found a property, which you wish to purchase, agree a price with seller before you pay a deposit or sign a document reserving the property, this is the time to see a solicitor.

Either the seller or agent could offer two types of documents; these are the more basic options.

Option 1 - Option to purchase
With this option you pay for the right to be able to purchase the property. The payment will be lost if you do not complete the option within the deadline agreed, even if you decide to buy it may be that the payment for the option may not go towards the total price of the purchase.

Option 2 - Contrato privado de compraventa
This is the better option, a document that is a private contract of purchase and sale. It sets out all the terms and conditions of the purchase. There might be terms, which are not mentioned in the document but implied by law regulating those aspects of the transaction.

If in doubt they can be expressly stated, we advise you should have a copy of the contract translated into English.

When using a private contract of purchase and sale it should cover:

The seller
The seller must be fully identified. Ensure that the seller is either the registered owner or someone acting on their behalf by a Power of Attorney.

The purchaser
The purchaser must be fully identified. It should be made clear if you are going to purchase the property in your name, joint names or in the name of a company. If this is not done it may mean later you will not be able to register the property as you wish to.

The property
The property being sold must be clearly and accurately described. If the property is a new construction you should confirm that the seller has the correct licenses to build and that the house has a license for habitation.

The price
The contract has to contain the full price of the purchase, the deposit that you have paid any stage payments and also deadlines for payments. Please take care, as any money paid in advance will not be returned if you cannot complete your side of the contract. Fixtures and fittings should also be declared if to be included in the price. Do not make your last payment except in exchange for the seller signing the Sale and Conveyance Deed (Escritura de Compraventa) over to you.

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