BUYING A PROPERTY

Phase 1: Finding Your Property

1. Define Your Needs and Budget: Determine what type of property you´re looking for (villa, apartment, etc.), your desired location within the Marbella area, and your budget, including potential taxes and costs.
2. Research the Market: Explore online property portals, contact real estate agents, and familiarize yourself with different areas of Marbella.
3. Engage a Real Estate Agent (Optional but Recommended): A local agent can provide valuable insights, access to properties, and guidance throughout the process.
4. Property Viewings: Schedule viewings of properties that match your criteria. Take your time and ask plenty of questions.

Phase 2: Making an Offer

1. Negotiation: Once you find a property you like, you´ll likely make an offer through your agent. Negotiation may occur until an agreement is reached on the price and terms.
2. Reservation Contract (Contrato de Reserva): Once your offer is accepted, you´ll typically sign a reservation contract and pay a small holding deposit (usually €3,000 - €6,000) to take the property off the market while your lawyer conducts due diligence.

Phase 3: Legal Checks and Due Diligence

1. Engage a Lawyer: It is highly recommended to hire an independent Spanish lawyer who specializes in property law. They will act in your best interests.
2. Due Diligence: Your lawyer will conduct thorough checks on the property, including:
• Verifying the seller´s legal ownership at the Land Registry (Registro de la Propiedad).
• Ensuring there are no outstanding debts, charges, or encumbrances on the property.
• Checking the planning permissions and licenses.
• Reviewing the community statutes (if applicable).

Phase 4: Private Purchase Contract (Contrato Privado de Compraventa)

1. Drafting and Signing: Once the legal checks are satisfactory, a private purchase contract will be drafted, outlining the full terms of the sale, including the agreed price, payment schedule, and completion date.
2. Deposit Payment: Upon signing the private purchase contract, you will usually pay a larger deposit (typically 10% of the purchase price minus the initial reservation deposit).

Phase 5: Completion (Escritura Pública de Compraventa)

1. Final Checks: Before completion, your lawyer will ensure everything is in order.
2. Signing at the Notary (Notaría): The final step involves signing the public deed of sale (Escritura Pública de Compraventa) in the presence of a Spanish Notary Public.
3. Payment: You will pay the remaining balance of the purchase price (usually via a banker´s draft).
4. Title Transfer: The Notary will witness the signing and ensure the legal transfer of ownership.
5. Registration: The public deed will then be presented to the Land Registry for official registration in your name.

Phase 6: Post-Completion

1. Payment of Taxes and Fees: Your lawyer will typically handle the payment of the Transfer Tax (ITP - Impuesto de Transmisiones Patrimoniales) on resale properties or VAT (IVA) and Stamp Duty (AJD - Actos Jurídicos Documentados) on new builds, as well as notary and Land Registry fees.
2. Setting up Utilities: You will need to set up or transfer utilities (water, electricity, gas, internet).

Key Costs for the Buyer:

• Purchase Price
• Transfer Tax (ITP) on resale properties (currently typically 7% in Andalusia) or VAT (IVA at 10% for new developments ) + Stamp Duty (AJD at 1.2% in Andalusia) on new builds.
• Notary fees
• Land Registry fees
• Lawyer fees

This is a general overview, and each purchase can have its nuances. Having a good lawyer is crucial to navigating the process smoothly and protecting your interests.