Private purchase contract, rates and community fees
Signing of the private purchase contract
Once your lawyer completes due diligence, providing that everything is in order, in a period of 2-3 weeks from the signing of the reservation deposit, your lawyer will proceed with the preparation and subsequent signing of the private purchase contract with the payment of the amount previously agreed with the vendors. Upon the signing of the private purchase agreement it is customary for the buyer to pay to the owner an amount equivalent to 10% of the purchase price in the case of resale property and an amount equal to 30% of the purchase price in the case of off plan properties.
The private contract is a very important step, as herein your lawyer will set out the terms and conditions of the purchase and carry out all the necessary negotiations with the vendor’s legal representatives in order to defend the buyer’s best interests.
Power of attorney
Many of buyers choose to grant power of attorney in their lawyer’s favour in order to act on their behalf in Spain during the buying process. This will enable lawyer to sign the relevant paperwork related to the purchase and the mortgage, if necessary. The power of attorney can be granted in Spain by a public notary, which is the easiest way, with an estimated cost of 70 Euros, or at the Spanish Consulate in buyer’s country of residence.
Furthermore, it can also be granted in your country of residence before a public notary, but in this case it should then be legalized with the Apostille of the Hague Convention or through Consular legalization for it to have legal value in Spain. In any event, lawyer will also assist you during this process should you choose to grant power of attorney, here in Spain or abroad.
Public deed of purchase
After the signing of the private contract, in a period of 4-6 weeks, depending on the conditions agreed with the vendors, the public deed of purchase will be signed by the client with lawyer’s assistance or by lawyer with the aforementioned power of attorney. At this moment the balance of the purchase price must be paid to the seller, with the buyer taking physical possession of the property.
Utilities, rates, garbage collection, community fees and taxes
Lawyer will take care of contracting and/or changing the title of all the contracts with supply companies as well as the relevant taxes concerning the property, and if you so wish lawyer can also arrange the direct debiting of those bills (direct payment made by your own bank in Spain).
A bank account in Spain will be needed in order to set up the direct debit for the utilities, rates, household waste collection and community fees. Lawyer can also assist you in the opening the Spanish bank account.