Terms & Conditions.
The information available on our web pages is supplied by the actual owners, or their agents. As such, we are obliged to make the following disclaimers:-
The accuracy of the information on web site www.valenciaproperty.co.uk is the sole responsibility of the seller, or the agent, for the property advertised.
www.valenciaproperty.co.uk does not assume any responsibility for the accuracy of this information. The staff of www.valenciaproperty.co.uk have not tested any apparatus, equipment, fixtures and fittings or services and cannot verify that they are in working order or are fit for the purpose. A buyer is advised to obtain verification from their lawyer or surveyor. Any reference to the tenure of a property is based on information supplied by the seller, or their agent. We strongly advise any interested parties to verify the information for themselves with the owner, or their agent, before proceeding with any viewing or purchase.
www.valenciaproperty.co.uk does not offer any guarantee, confirmation or warranty, of the description or standard of the properties offered for sale on our web sites, or on any printed pages.
The staff and directors of www.valenciaproperty.co.uk, sellers and agents do not accept any liability for any typographical errors in the information supplied.
Any information displayed on the web pages is subject to change without notice.
Apart from the actual cost of a property, you need to allow approximately 10% of the purchase price to cover for the fees and costs of acquiring the property. This 10% will cover the solicitor’s fees, translator’s fees, land registry cost, notary’s charges, stamp duty and VAT.
It is important to seek professional advice, and to employ a solicitor (Abogado). Most lawyers will tell you in advance what their fees will be. The standard lawyer’s fee for the purchase of a property is 1% of the purchase price plus VAT. A small price to pay for peace of mind (using a lawyer in your home country could double or treble the bill). The Spanish legal system is very different from other European countries and, to avoid misunderstandings, disappointments and possible fraud, it is essential to seek expert professional advice from the very beginning.
PROCESS OF BUYING A PROPERTY
Once you’ve decided on a property, a contract will have to be drafted and you need to make provisions for the deposit. The standard deposit is 10% of the purchase price. The deposit is payable upon signing the contract (Contrato de Compraventa), which will include a completion date and the transaction conditions which usually contains an assurance by the sellers that the property is sold free of charges, tenants and mortgages.
Once both parties have signed this contract and the deposit has been paid, you have secured the property. This is a binding contract for both sides with penalties for breaking it or for failing to honour the terms of the contract.
After you have signed and paid your initial 10% deposit on the property, it is imperative to review the important legal details. Check the receipt for the paid IBI, the Impuestos sobre Bienes Inmuebles, the annual real estate tax. This receipt gives the all-important Valor Catastral the official assessed value of the property, on which your property owner’s income taxes will be based. Check with the local town hall that the receipts have been paid. Any outstanding balance may be requested of the vendor (this will done by the lawyer).
Do not buy Spanish property until you have obtained a current Nota Simple (an extract from the title) from the Registro de la Propiedad.
PAYMENT AND SIGNING OF DEEDS
The next stage is to complete the purchase at the Notary’s office, usually, within a month or so, you will be ready to make the final checks before signing the “Escritura Publica de Compraventa” (title deed) in the presence of a Spanish Notario (Notary) who certifies that the contract is officially made, the notary does not certify that all statements are true, only that the parties have sworn to them.There you will be required to pay the balance of the purchase money, taxes and Notary’s fees.
These are collected by the Notary for preparing the deed and presiding over it’s signing. His fee is fixed by law, is on a set scale according to the property value, and whether the property is mortgaged or not, is not normally more then 1% of the purchase price including VAT.
Please note all professional fees including the notary’s and land registry’s charges are subject to 16% VAT.
All property in Spain should be registered in the Registro de la Propiedad (the land registry), where you can obtain the full details of the owner, the exact size of the property and full details of any mortgages, debts or judgements against the property will normally be registered. Only the persons or company named on the Escritura Publica, the title deed, have the right to sell the property, unless a notarised power of attorney has been given to the third party.
When the title deed is signed, you will automatically become the new owner. The final step is to have the ‘Escritura Pública’ registered in the Property Registry Office as soon as possible to prevent a mortgage or other charge being registered against the property, while it is still listed in the name of the seller.
PROPERTY REGISTRATION FEES
Property Registration fees is charged by the property registration office to inscribe the new deed into your name. These are based on the official registered value of the property. The length and complexity of the deed and other factors are also considered. The fee does not exceed 1% of the registered value.
It is not advisable to try and do this yourself unless you are experienced and speak Spanish fluently.
Property Transfer tax or IVA (V.A.T.)
Which of these two taxes is levied will depend on the type of property you are purchasing. The property transfer tax is levied on resale properties and is charged at 7% of the new escritura value (purchase price).
If you purchase a newly built property from a developer you will pay a different tax called I.V.A. (V.A.T.) is charged at 7% of the selling price plus 0.5% stamp duty.
Plus Valia (local municipal tax)
This tax is based on an officially assessed increase in the value of the land since the last time the property was sold. This can be quite small if purchasing an apartment, but expensive on a villa with a large plot, which has not changed hands for years. Find out the exact amount from the town hall. Do not confuse this tax with the seller’s capital gains tax on his profit on the sale.
In practice “who pays what” is negotiated with the final selling price and this must be stipulated, as well as listing the contents/fittings to be included in the sale, when the owner accepts your final offer (in writing).
In accordance with Spanish law, the buyer is responsible for:
Transfer Tax or
(I.V.A. + stamp duty when buying from a developer)
Property Registration fees
THE SELLER IS RESPONSIBLE FOR:
His own capital gains tax on any increase in escritura value
Plus valia tax
Selling agent fees
If there are any debts, outstanding mortgages, unpaid Community fees etc, then you should make sure that these are paid directly to the debtors first, and the seller gets the balance of his money once all other interests in the property have been settled from the purchasers money. The conveyancer will help you ensure that all of the various bank certified cheques required for the different parties are drawn up by the buyers bankers – ready to hand over at the notary office on the day of completion.
This becomes your responsibility upon possession of the property. Normally, Spanish insurance companies offer a split policy, whereby the property and its contents are assessed separately. Please note that in the case of some property owner’s associations, community fees may include cover on the building.
TERMS AND DESCRIPTIONS
Actos Juridicos Documentados (AJD)—-Stamp duty
Community Administrator—-Check for any outstanding fees that need to be taken into account
Contrato de Compraventa—-Contract of sale, this is signed when the 10% deposit is paid, check ‘completion time’, Escritura value, Furniture inclusion and other conditions of the sale
Copy of Escritura—-This will be certified copy of the title deed
Cuotas de comunidad—-Community service charges
Escritura Publica de Compraventa—-The title deed. This will show who the true owner/s are and define exactly what is being purchased
Escritura value—-Purchase price of the property and content value
Hacienda—-(Tax Office) Checks there are no outstanding taxes and that previous wealth tax submissions were made
Impuesto Sobre Transmisiones Patrimoniales (ITP)—-Property Transfer Tax
Legal Definition of the property—-Exactly what is being sold – (bit embarrassing to buy a villa, and then find the deeds don´t include the land it stands on)
Liabilities and debts—-The extent of any borrowings or liabilities, if any, guaranteed by the property and any outstanding debts on the property.
Nota Simple—-An extract from the title, which confirms current ownership and shows any mortgages or embargoes on the property. Available from the land registry
Notario—-The public impartial witness (Notary)
Plus Valia—-Capital Gains tax on land
Registro de la Propiedad—-The land registry
Town Hall—-Checks that the annual Municipal rates have been paid up to date.