DreaMarbella Real Estate
Our team of property experts have access to over 20,000 re-sale and new properties through our own and co-operative marketing sites on the coast. We are able to show you the latest new developments along with exciting new projects which are exclusive to us.
What should you do when buying a property?
With the help of one of our property experts you have found your dream home, congratulations! now what is the next step?
The reservation contract sets out the agreed price along with the terms and conditions of the sale. Once agreed and signed by both the buyer and the owner a deposit of 6000 is paid to reserve the property and effectively remove it from the market. At this stage no further viewings can take place with other interested parties until such time as the sale has taken place or the reservation has been cancelled.
2. Due Diligence
At the point of reservation it is usual for buyers to instruct a lawyer. Once the lawyer has been instructed they will carry out due diligence in order to ascertain the legal status of the property including but not limited to the following checks:
· Who owns the property.
· Are there any unpaid debts against the property.
· Is the property being leased and if so are there any unpaid tenants fees.
· Costs associated with buying and running the property including taxes, community fees and IVA.
· Does the property have a first occupancy licences.
If there are any extensions or additions to the original building, do they have the correct licences and are logged with the land registry. It is worth noting at this point that should any red flags be raised by the lawyer such that the buyer does not wish to proceed the reservation is cancelled and the deposit returned.
3. Private Purchase Contract
Once the legal searches have been completed the Private Purchase Contract can be finalised. The PPC will reflect all the important terms and conditions of sale including the date for completion before the notary.
Upon signing the PPC a second payment is due, with a re-sale property this is typically 10% of the purchase price minus the reservation already paid. In the case of an off plan property this payment can vary, however is is usually between 20 – 40% of the purchase price.
Once the PPC has been signed by both the purchaser and vendor the final step after transferring the funds is to sign the public deed at the Notary’s office. On the same day as completion the notary will provide the vendor and purchaser with a document entitled “copia simple” This is copy of the recently signed deed with the original being sent to the relevant land registry.
5. Associated Costs
Buying costs stand at around 10 – 14% of the purchase price however they can vary depending on the following:
· 10% IVA is due on all new build properties
· 8% IVA is due if the property is a re-sale
· 1.5% Notary and registry fee
· 1% Legal fee
· 1-1.5% mortgage set up cost