You have found your dream home in Spain, so what happens now? Contact a good lawyer in Spain directly. Getting legal advice in Spain for purchasing guidance is an absolute must.
When it comes to buying or selling a home, we are often asked whether it is really necessary to hire a lawyer. With a view to saving costs, you may be thinking, “The notary checks everything, right? If that’s the case, why do we need a lawyer?”
Let us take you out of the dream right away, because a lawyer is indispensable in Spain when buying a property.
We are happy to tell you why!
Where the role of notary is the most important key figure in the purchase of a home in most Northern European countries, the situation is slightly different here in Spain.
Of course, the notary is important in ensuring that the settlement process runs smoothly and in checking the final notarial deed of sale (the ‘deed of sale’), but the lawyer is the one who has actually done all the legal work.
The lawyer at the end is ultimately the most important person during the buying process. With this data we want to give you some insight into the role of a lawyer in Valencia, what exactly he or she does, when you call for help and of course also the costs.
You have visited and found your dream home in Spain. Congratulations! What now? Since the house is probably not for sale exclusively with one real estate agent, it is important to take the house off the market as quickly as possible.
Where you can normally expect that all pre-checks have already been done before a home comes on the market, this will often have to be done to a large extent due to the non-exclusive principle. This means that before a preliminary purchase contract is signed and 10% of the purchase price is paid, it is very important that you are sure that everything is correct.
The reservation contract has been drawn up for this, the ‘contrato de reserva’. This way you can take the property off the market, but under the conditions of legal scrutiny. With this contract and a down payment of usually between € 3000 and € 6000 you actually buy time.
Once this reservation contract has been signed and the deposit has been received, the property will be immediately withdrawn from the market. It may no longer be offered and visited by others. The money remains secured with the broker and will be refunded if the legal check ultimately shows that this is not a good property to buy from a legal point of view. And otherwise it is already a down payment on the 10% of the purchase price.
The moment after the reservation is in any case the moment when we advise you to contact a lawyer. The validity of a reservation contract is not unlimited. Under normal circumstances, it is assumed that all checks have taken place within 7 to a maximum of 10 days. This should therefore lead to a preliminary purchase contract within two weeks.
After you have given the order to the lawyer, he will request all relevant documents from the selling party as soon as possible. After making the reservation, it is important in Spain that a lawyer checks various matters for you before continuing with the preliminary purchase contract and the 10% deposit. This is very important, as you don’t want to buy a home that later turns out to be incorrect.
If the lawyer discovers a legal reason why you should not buy the house, you are protected against a major mistake and you simply get the reservation amount back.
You can assume that most lawyers carry out the same checks, but it pays to ask what exactly is included in the standard package of their purchase guidance. The duties of a good lawyer in Spain include the following:
A lawyer not only checks, but also knows how to solve any legal challenges. For example, it regularly happens that there are differences in m² between the land registry and the register. Also, not all outbuildings or swimming pools are always correctly and completely described. The lawyer can often check whether this cannot yet be realized and ensure that this is legally rectified before or during delivery.
On request, the lawyer can also request the zoning plan of a home. It can also be used to determine, among other things, whether the house may be eligible for a rental permit. If you want to rent out, it is the lawyer who will ultimately give you a definitive answer about the possibilities in the relevant municipality. A rental permit can never be guaranteed for research into the rental options of a lawyer.
After delivery, the lawyer can also convert the contracts with the utility companies (gas, water and electricity) into the correct name. These will then be debited from your Spanish bank account via an automatic payment. So you don’t have to arrange anything yourself.
A lawyer can do much of the work remotely and online. For a number of things you will have to be present yourself, such as of course the delivery at the notary. Although that is also not possible, this could also be done with a power of attorney via a notarial authorization. The lawyer can then sign the deed of sale on your behalf if you cannot be present at the transfer of your house in Spain.
For example, if you are working on realizing your own custom-made new-build dream villa in Spain, you will usually have to be in Spain regularly to sign various documents. This includes building permits or securing the payments made by receiving a bank guarantee. A lawyer can also do this for you via a power of attorney, so you don’t have to come to Spain for every signature (although that is of course not a punishment).
In addition to the standard tasks and giving independent advice, the lawyer in Valencia can also arrange a number of other matters for you. With a power of attorney (issued at the notary), a lawyer in Spain can arrange matters for you or sign for you if you cannot be present in Spain yourself. For example, a lawyer with a power of attorney can also request a NIE number if you have not already done this yourself during the preparation process. In Spain you need the NIE number (the tax number for foreigners) when buying a property.
Keep in mind that the NIE number is a lot more expensive than if you do this yourself in the normal way. Where a NIE number normally costs about € 10 administration costs, this amount quickly comes to about € 300 per number via a lawyer. But it is of course nice that your lawyer in Valencia can arrange this for you if you have found your dream home and want to move on.
Of course we always advise you to be present as much as possible, after all you are the one who is going to buy a house in Spain!
There are of course many good lawyers in Spain. Especially lawyers who specialize in real estate and real estate purchase guidance.
Many potential buyers do not yet speak the Spanish language or speak insufficiently, so an English-speaking lawyer in Spain is important in that case. We even know Dutch-speaking lawyers in Spain. Since you hire the lawyer yourself, it is important that no miscommunication can take place.
It is important to have personal contact with the lawyer before hiring to feel whether you have the ‘click’ and the trust. Ultimately, the lawyer is the most important trusted person when buying a house in Spain.
After finding your dream home, we can always put you in touch with one or more good lawyers in Spain, if desired, English or even a Dutch-speaking lawyer in Spain. Of course it is a requirement that the lawyer is established and active in Spain. In addition, it is important that the lawyer is independent of the selling party and has good local knowledge. Certainly with specific objects, for example if you buy a ‘rustico’ house (finca in the countryside), a B&B (rural house) or, for example, an apartment in Spain. In that case, it is important that the lawyer has the local knowledge and input to be able to act quickly and obtain the correct information.
We are also regularly asked whether, in order to avoid extra costs, it is possible that the lawyer who already has one in the home country can also do this in Spain or that you can do this yourself if you have a legal background. This is certainly not recommended. Spain is a large country and the rules sometimes differ per municipality. We always recommend hiring a lawyer based in Spain.
What additional costs should you take into account for a lawyer in Spain? In Spain, a lawyer often charges a basic rate of about 1% to 2% of the purchase price + 21% IVA (IVA is Spanish for VAT for purchase guidance. The costs vary per lawyer, but are usually between 1 and 2 percent. of the purchase price excluding VAT In addition to a percentage, they usually also apply a minimum rate, such as € 2000 to € 3000 excluding VAT.
Also, keep this in mind when calculating the buyer’s cost. We often say in Spain, take into account about 13 – 15% costs for the buyer, which also includes the lawyer’s fees. Keep in mind that some costs for cheap housing are a bit higher, given the minimum rates. For example, for a home of €100,000, the costs for the buyer are higher in percentage terms than for homes from, for example, €250,000. The lawyer’s fee can then be 2.5% instead of 1.5% (including VAT).
You can read more about the purchase process in Spain and the other buyer costs that you can expect in addition to a lawyer here. In any case, always inquire in advance which costs the lawyer will charge. That way you won’t be faced with any surprises afterwards. It is of course possible that the costs are higher if, in addition to the standard tasks, you also ask your lawyer to assist you in more complicated cases or permit applications. A good lawyer is well worth the money.
Don’t be put off by this long story. Or through stories that you have undoubtedly heard about someone who bought a property in Spain with all kinds of problems. By being legally guided by a good lawyer, you can buy a house in Valencia without any worries. You do not need to know everything yourself, but if you opt for professional legal advice, the experts will assist you and prevent you from falling into one of the pitfalls.
We are of course happy to help you find a good lawyer in Spain, known in the region and who can assist you in your own language or, if necessary, in English. If you are not known in Spain yourself, it is often difficult to determine. Over the years we have assisted many people with their purchase and thus built up a good network. We are happy to connect you with the lawyer for the best legal advice that best suits you and your specific situation.
See you in Spain!
Buying a house in Spain should be a fun and carefree process. At Dream Properties International we work very hard to make sure your purchase goes smoothly. And that you can enjoy your dream home in Spain now and in the future.
We introduce you to the best partners we work with and together we help you during the entire purchase process (see also the services we can offer you). We guide you through every step of the process and hope you find the information on buying a house in Spain on our website useful!
If you have any questions about buying a home, would like more specific information on matters such as legal and tax matters or if you need advice on a step in the buying process, contact us now by filling in the form.
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CompareDream Properties International is a Certified Estate Agent based in Spain and meets all legal requirements to carry out the profession of estate agent in Spain.
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