BUYERS GUIDE

Nova Realtys will help to make a property selection based on your special requirements (needs & budget)

Request an Appointment:

T.: +34 625 292 032

E.: richard@novarealty.es

We will coordinate all property viewings before your arrival. Additionally, we can assist with arranging airport pickup for your convenience. Rest assured, we strive to ensure a seamless experience for you.

When selecting a lawyer, it is paramount to seek out someone who possesses expertise in the specific field you require. If necessary, we are able to offer recommendations for qualified legal professionals.

After discovering your dream home, your agent will request you to sign a reservation agreement (contrato de reserva), effectively removing it from the market. Typically, a minimum of 6,000 EUR is paid upon signing. Your lawyer will conduct a property due diligence, covering building and first occupation licenses plus any other relevant legal or tax matters.

DUE DILIGENCE

Due diligence is a crucial legal procedure conducted by a neutral specialist to assess the property. It serves as a comprehensive checklist that provides all the necessary details for a successful transaction. The main objective of this procedure is to verify the information provided by the seller. The due diligence process may vary depending on whether the seller is an individual or a company.

FROM A PRIVATE PERSON

• Seller’s Legal Identity
• Land Registry
• Property must be free of debt 
• Municipal Building & Habitation License
• Drafting and signing private contracts & public notary documents.

FROM A COMPANY

• Seller’s Legal Identity
• Land Registry (Property Under Construction)
• Property Must be Free of Debt 
• Building License (if Applicable)
• Quality & Building specifications
• Bank Guarantee/Insurance Policy From the developer during the construction process.
• Confirmation of the 10-year guarantee (Seguro Decenal) for Structural Defects.
• Revision of the purchase contract drafted by the developer.

After conducting thorough due diligence, within a two-week timeframe, the lawyers will draft a Deposit Contract or Private Purchase Contract. The difference between the two is that a Deposit Contract both parties can decide not to complete the purchase (and either losing the 10% or returning 20% in the case of the seller), but in the Private Purchase Contract (PPC) both parties have to complete. At this stage, an additional percentage of the property’s agreed price must be paid, typically 10% for resale properties and 30% for new developments.

To complete the purchase, the buyer must sign the public deed of purchase (Escritura Publica) at the notary’s office. You can either be present in person or appoint someone, usually your lawyer, through a power of attorney. In case you have a mortgage, a separate deed will be required, which the notary will carefully review. Finally, the buyer will be handed the keys, officially becoming the new homeowner.

01. RESALE PROPERTY

• The ITP (Impuesto de Transmisiones Patrimoniales) A transfer tax based on the autonomos community, in Andalucia 7% ITP is applied to all purchases.
• Notary Fees (Escritura): The fees charged by notaries usually fall within the range of 500 to 1,800 EUR per transaction 
• Land Registry Fees: This fee is determined by the authorities and is usually between 50-70% of the notary fee.
• Legal Fees: 1% of the property purchase price + 21% VAT
  
  

02. NEW PROPERTY

• The VAT: 10% for residential properties and 21% for plots, garages & storage
• Stamp Duty: 1,2% for Andalusia · Notary Fees (Escritura): The fees charged by notaries usually fall within the range of 500 to 1,800 EUR per transaction 
• Land Registry Fees: This fee is determined by the authorities and is usually between 50-70% of the notary fee
• Legal Fees: 1% of the property purchase price + 21% VAT

Upon becoming the new owner, it is necessary to update all names on contracts associated with the property. This encompasses utilities such as water and electricity, council tax (IBI), rubbish tax (Basura), and community fees. To ensure the smooth processing of payments, it is imperative to possess a bank account in Spain.