If you're looking to purchase property on the Costa del Sol, our experienced team of real estate agents will be able to guide you through the process.
The procedure for buying property in Spain can be complicated. For this reason, it's always recommended to have a real estate professional advise you throughout.
The procedure for buying property in Málaga Province works as follows:
Reservation Fee. Once you have chosen the property you wish to purchase, a reservation fee is required. This would be paid to the estate agency and we will then proceed to take the property off the market. Once the reservation fee has been paid, Costa Space provides you with a contract. The contract outlines the terms under which the reservation fee is refundable, such as title issues or a mortgage being declined.
The contract is verified by a lawyer who will go over the small print. This is done to ensure the contract protects you, for example, by providing a clear definition of what constitutes a legal issue, to avoid any potential disputes.
The role of the lawyer is critical when buying property in Spain. Choosing your solicitor is one of the most important decisions in the home buying process. Costa Space Real Estate Agency only works with lawyers that are registered and regulated by their local Law Society. We also ensure our lawyers have professional indemnity insurance coverage and speak a high level of English.
Sales Contract. After the Reservation Fee has been paid and the initial contract has been signed, the next step is the more formal Sales Contract. The Sales Contract is drawn up by the laywers and includes a timescale to purchase, at which point the deposit of 10% is required. The Sales Contract is a binding contract between the Buyer and the Seller of the property. If the Buyer withdraws from the sale of the property, they will forfeit their deposit.
The Spanish system protects the Buyer to a larger extent - if the Seller pulled out of the sale, the penalties are more severe. If the Seller withdraws, not only must they repay the deposit, but they will also be required to pay the same amount in compensation to the Buyer. This measure was put in place to deter sellers from changing their minds regarding the sale of the property, or accepting a better offer.
Obtaining a NIE Number (Non-Residents Only). Buyers are usually at risk when a contract has a tight deadline, so obtaining a NIE number should be taken into account. NIE means 'Número de Identidad de Extranjero' (Foreigner's Identification Number) and is your tax identification number. All foreign-born residents must have a NIE. This number will be used when applying for a mortgage.
Expected Timescale. We recommend an eight week timescale for completion during the home buying process. Banks are not likely to have an offer in place much before six weeks, as mortgage underwriting is detailed and takes around 6 weeks for final approval.
If you are purchasing a property during the summer months, we recommend this time be extended to a 10 week timescale. This is because banks in Spain are reliant on third parties, such as surveyors, who can be slow during the busy summer months.
Most banks will suggest that clients request a maximum of two months before completion, but the sale can be completed anytime during this period.
At Costa Space, we aim to make your property purchase as hassle free and pleasurable as possible. Your complete satisfaction is our utmost priority. From the moment you decide to purchase a property with Costa Space to any point in the future when you may consider selling your property, we will be with you every step of the way.
Our client care is tailored to your individual needs and your satisfaction is our priority. You will never feel like you are just a number with Costa Space.