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Buying a property in Spain does have certain similarities to the conveyancing formalities in England, although there are some important differences. A typical transaction will be as follows:
1 - Once you have found a suitable property, the details will be sent to your Lawyer. In some cases the Purchase Contract will have been drawn up by the Agent; in others the Lawyer will prepare the Purchase Contract. Unlike in the U.K., the Seller will often not be legally represented, on the basis that he or she is only interested in the proceeds of sale and not in the legal niceties involved! This is not always helpful, but is a fact of life in Spain!;
2 - Your Lawyer will then make searches at the local Land Registry to check that there are no adverse entries or unsatisfied mortgages. He will also make enquiries of the local Town Hall to ensure that there is no adverse development planned in the area and that all necessary licences for the construction of the Property were obtained. If there should be an outstanding mortgage, he will make further enquiries to ensure that this will be discharged upon legal completion;
3 - Your Lawyer will also make enquiries of the Seller and check that all outgoings on the Property are up to date. If they are not, he will ensure that these will be paid on or before completion, or that a deduction will be made from the Purchase Price to compensate for this;
4 - Once your Lawyer is satisfied that all is in order, you will sign the Contract (if you have not already done so) and pay the deposit. A Completion date will then be set;
5 - Completion in Spain is totally different from the system in England. Both parties must appear before a Notary. A Notary in Spain does not have an English equivalent. Whilst legally qualified, he or she is not a lawyer but a government official responsible for the execution of public documents. He will ensure that the transfer deed is drawn up correctly, and fully describes the property and recites that the purchase money has been paid in the appropriate currency. This does not obviate the need for you to employ a Lawyer, as this is essential to protect your position and to ensure that the legal formalities are observed.
If you cannot, or do not want to, appear in person, you can instead grant a Power of Attorney in favour of a third party to appear in your place.
Both parties, or their attornies will sign the Transfer Deed, known as an Escritura de Compraventa, before the Notary, who will also sign the document.
The balance of the Purchase Price will then be paid to the Seller, less any deductions, fees and taxes already paid, and the keys to the Property will be handed over;
6 - As all property sales and purchases in Spain must be registered in a local Land Registry, the Escritura de Compraventa will then be sent to the Land Registry for registration once all the taxes have been paid. This normally takes some 2-3 weeks. In the meantime, you will receive from the Notary a certified copy of the Escritura de Compraventa. This is called a Copia Simple.
