Buying a house in Spain

@Lisestrahle

Does she have her NIE? This is needed for any property purchase.

Alicante's a very nice area. I approve. :-)

Before you visit the property check the water supply is Town water. Never buy property with only well water supply. Check the sewerage system,  never buy property with only septic tanks in your garden. Never trust what the Seller or Estate Agent tells you. Hire a Surveyor to check the water, sewage  and electricity supply. Never buy property in a Community with President and Secretary. They can make your life miserable with their petty restrictions, such as no dogs, children, etc. Check the property has an Architect certificate. Is registered on the Local Land Registry  as a house, NOT just as a work shed.  Never use a Lawyer who is a "friend" of the Estate Agent. Good luck...you'll need it!

@Lisestrahle: very frustrating and time wasting trying to find private sellers. Extreme caution with property agents, NEVER pay any "reserve fee" etc. such money will be gone forever. My recommendation after 60 years permanently in Spain: come here, take your time, you'll need it and a great lot of patience too, nothing is what it seems to be, many footstraps. W/o the language you'll become an easy target for being ripped off. I live near Murcia (IKEA) and if you feel like we can have a beer there when you are in ther area. BTW my grandfather is from Haderslev.

Hans (***)

Hi,

Here are some advices to avoid to make a secure buy.

Eighteenth trap – Not controlling the property situation

ESSENTIAL !

You've finally found the apartment in Barcelona or the beachfront villa on the Costa del Sol that you've been dreaming of. But have you thought about checking the situation of the property? During the purchase, before making a contractual commitment and paying a single euro, it is essential that you inform yourself in detail about the town planning, legal, fiscal, financial and physical situation of the property, at national, regional and local level because the notary will not do it! In Spain, the buyer is responsible for checking the property. In the event of a subsequent problem, it will be your responsibility and not that of the notary.

Spanish notaries do not have the same role as French, Belgian or Swiss notaries. The latter carry out all legal and planning checks on the property before the sale. The Spanish notary only does this at the time of the final contract, when you have already paid the deposit (10% of the purchase value).

In Spain, the buyer is responsible for controlling the property throughout the purchase. A clause in the notarized purchase deed also stipulates that the buyer knows the legal and urban situation as well as the physical condition of the property. This clause makes it difficult to prove that the fault lies with the seller for hiding certain information.

And the list of checks and verifications to be carried out by the buyer during the purchase is very, very long…

THE “NOTE SIMPLE INFORMATIVA”

In Spain, debts are not linked to the owner, but to the property, and again it is up to you to find out as soon as possible.

Before signing the reservation contract (“contrato de reserva”), it is necessary to ask the owner or the agency for the most recent “Nota simple informativa”. If they refuse, you have every right to request it from the Property Registry .

This document will inform you, among other things, of the description of the real estate, whether the property is indeed owned by the seller, when and how he acquired it, whether or not there is a mortgage and/or debts registered, whether there is an easement or a right of pre-emption municipal or autonomous (Derecho de tanteo y retracto).

Even if the owner is a single person, it may be noted in the simple note that it is necessary that the signatures of other persons be required in order to waive any rights they may have in the property.

It also happens that an inheritance is not liquidated. Thus still appears in the simple note, the former deceased owner. It will therefore be necessary to liquidate the inheritance before signing the sales contract.

THE CADASTRAL EXTRACT

In Spain, there are two registers relating to real estate. One is the Property Registry (Registro de la Propiedad) that we just talked about. The other is the Cadastre (Catastrophe).

The main purpose of the cadastre is to serve as a basis for the application of taxes such as IBI (“Impuesto sobre Bienes Inmuebles”, the Spanish equivalent of property tax), inheritance and gift tax or transfer rights.

Since 2023, it has also provided the “ reference value ” to the tax services. This is the minimum tax value on a real estate purchase in the former (ITP).

In the cadastral extract, we will find information on the year of construction of the property, its status, the areas of the main elements, the share in the case of co-ownership.

For the same property, there may be differences notable differences between the simple note in the Property Register and the cadastral extract. In particular different addresses but above all a difference in surface areas which can go from simple to double! You should know that if the discrepancy is greater than 10%, the Registry may paralyze the registration until the situation is clarified. This is why, in these cases, it is important to note in the reservation contract and in the sales agreement that these problems must be resolved by the seller before signing the sales contract with the notary.

THE REFERENCE VALUE

Since January 1, 2022, a new calculation method, the reference value (“valor de referencia”), can cause a significant increase in the Property Transfer Tax (ITP), the tax on the purchase of real estate in Spain. It is therefore important to have this information before any decision-making.

From now on, for an old property, the buyer will pay purchase tax, ITP , on the highest value between the purchase value of the property and the tax reference value. Thus, the taxpayer does not pay tax on the acquisition value of the real estate, but on its tax value if this is greater than the purchase value. And the law says that the tax value of the market is the reference value approved by the Directorate General of Cadastre. This value is calculated on the basis of real estate transaction prices recorded by notaries and the Property Register.

THE “ENERGETIC CERTIFICATE”

To sell or rent real estate, the energy certificate has been mandatory since June 2013. It provides information on the energy consumption and CO2 emissions of the home. It is the responsibility of the owner who must hire the service of a certification technician to obtain the energy certificate for their home.

The energy label indicates the degrees of emission and consumption that the good has obtained, on a color scale going from A, the most efficient to G, the least efficient. The energy certificate must be included in the sales contract. In the event of rental, a copy of the energy certificate must be given to the tenant.

Please note, the energy certificate is valid for 10 years except in the case where the energy rating is G. Its validity is then only 5 years.

In Spain, the vast majority of energy certificates are rated E, F or G.

LOCAL TAXES, CHARGES AND INVOICES

You must also ask the seller for a copy of the latest payment receipts for IBI (“Impuesto sobre Bienes Inmuebles”, the Spanish property tax), electricity, gas, water.

CO-OWNERSHIP DOCUMENTS

The owner should also provide you with the statutes of the co-ownership . Essential if you want to rent your apartment for tourist purposes because the statutes may prohibit it. He must also transmit the latest minutes of the ordinary general meeting of co-owners and the attached accounts . You will be able to check if you will have to pay for rehabilitation work or other approved work. during the last General Assembly. And you will have the amount and breakdown of co-ownership charges. And proof that your property is free of all charges due to the co-ownership on the date of the ordinary general meeting and especially on the date of signature with the notary.

THE PREVIOUS ACT OF SALE

You can also request the previous deed of sale if the seller had already purchased it from a previous owner. It will allow you to check in particular that there have been no modifications to the property (extension, internal modification). In the event that there is a significant modification (extension of the property for example, swimming pool, garage, substantial modification of the internal architecture, etc.), check that a declaration has been made to the competent services. Normally the technical services of the Town Hall. And that they are well registered in the Property Register. Otherwise, in the absence of a declaration and in the event of an inspection, it will be up to you to do so and pay the taxes linked to these modifications.

THE “CERTIFICADO OF APTITUDE”

Since 2012, in buildings over 50 years old (45 years in Catalonia), a technical inspection (Inspección Técnica del Edificio – ITE or Informe de Evaluación del Edificio – IEE) is mandatory. The owner must provide you with the “ certificado de aptitud ” of the building. The ITE is not compulsory in all Spanish regions, but it is in the four main ones: Community of Madrid, Catalonia, Andalusia, Valencian Community.

Please note, if the building's ITE has not been passed, the notary must indicate in the sales contract that you are fully aware of the absence of this technical inspection.

THE “HABITABILIDAD CEDULA”

In regions where this document is required (Catalonia in particular), the owner must give you during the purchase phase of the accommodation, before signing the “contrato de arras” (the sales agreement), the “ Cédula de habitabilidad ” (the certificate of habitability) or the “ Licencia de primera ocupación ” (the authorization for first occupation). Or even earlier if possible, for example at the time of the “contrato de reserva” (the reservation contract).

The cedula will inform you that the property is intended for residential use and that it is habitable. In many cases, the absence of this document simply means that it is not residential premises or that the property was built without a building permit!

The cedula is valid for 15 years and must then be updated. It is not obligatory in all Spanish regions.

THE TOURIST LICENSE

If you want to rent the property you want to buy during the season to tourists or for short periods during the year, you must have a tourist license. Spanish municipalities, which were very permissive a few years ago, have drastically limited the number of new licenses granted, or even banned them. On the subject, you can read our article Tourist rental in Spain – State of play in 2023 .

If the owner already has a tourist license, it is normally transferable (which may explain a higher than market price). Please note, some municipalities are considering no longer making licenses transferable. Their validity would end at the time of sale. Check with the municipality where you are considering purchasing a property.

If the owner does not have a tourist license, you will then need to apply for one. But it will be necessary to inquire to know (1) if the municipality still grants licenses, and, in the case where the property is an apartment, (2) if the statutes of the co-ownership allow tourist rentals.

THE RENTAL STATUS OF THE PROPERTY

If the property is rented, it is important to know when the current contract ends.

Since the new Law of March 2019 on long-term rentals, a new owner cannot demand the end of the lease. And the tenant will still have the right to stay in the accommodation until the 5-year contract expires. Which was already the case before March 2019 but only if the rental was registered in the Property Register.

THE PHYSICAL CONDITION OF THE PROPERTY

You must inspect the accommodation and do it quietly. If you have decided to buy the property, before giving your consent, you need to control the smallest details.

Make sure there are no cracks in the walls, check the tightness of the roof, the common facilities (elevators, central heating, etc.) and the quality of the materials. Particular attention must be paid to the ceilings and floors, the quality of the joinery (windows and doors in particular) and the parquet or tiling, the conformity of the electrical and water and gas distribution systems, lighting, air conditioning, boiler, bathrooms and kitchen. And if there is a swimming pool, check it for cracks, it could spoil your first baths!

If there is any doubt about the condition of the property, it is important that an architect carries out a visit to ensure that the property does not hide any defects. In addition, if you wish to carry out work, he will also be able to confirm their feasibility and approximate cost.

AND URBAN PROJECTS

Ask municipal technical services about town planning plans or the carrying out of public works in the area which may benefit or harm housing and its environment.

OKUPAS: DANGER!

Last check related to the neighborhood, particularly in buildings in Barcelona: the presence of Okupas in other housing units in the condominium. The Okupas are squatters, they will obviously not pay any common charges, and you will then have to bear this financial burden. Some municipalities, including Barcelona , are more than kind to them and it will be very difficult for you to deal with this problem.

Very often when you see accommodation offered by banks at unbeatable prices, you can be sure that they are in buildings inhabited by okupas.

CHECK THE FINANCIAL HEALTH OF THE PROMOTER IN NEW BUILDINGS

In an off-plan purchase, don't forget to check the financial health of the developer and visit their previous achievements. At the time of the crisis, in 2007/2008, many promoters declared bankruptcy and left their clients “in the lurch” (to put it mildly) who often lost all their advances.

TWO TIPS TO FINISH

For all these checks and investigations, the intervention of a Real Estate Advisor speaking French during the acquisition period is essential if you do not want to take any risks.

Never pay a reservation deposit (a “reserva”) until you have carried out a minimum of checks (nota simple, cadastral extract, reference value, cédula de habitabilidad if it is required) otherwise you risk losing your deposit in case of problem discovered after payment.

Nineteenth trap – Not making a precise reservation contract

The “contrato de reserva” (the property reservation contract ) is the first document signed in the purchasing procedure. It allows, as its name indicates, to reserve and therefore block the property.

It is accompanied by the payment of a small sum of money (around 1%, most often between €1,000 and €5,000) paid as a temporary reservation of the property. Payment of the reservation deposit guarantees that the property is taken off the market and reserved for you for the price granted. And this for a short period, which generally varies from one to two weeks.

This contract defines the property (information from the Land Registry and the Property Register), who is buying (identity, address) and who is selling (identity, address), at what price, the deadline for signing the sales agreement contract ( “contracto de arras”) and the amount paid on that date, and normally the deadline for signing with the notary and the amount to be paid upon signing.

It is better (1) to pay this deposit to the real estate agency rather than to the owner, (2) for the real estate agency to be API certified (Colegio de Agentes de la Propiedad Inmobiliaria) and (3) to pay by transfer (or by bank check) rather than cash; so there is a trace of the payment.

This step is not essential, it is often used to obtain the final mortgage agreement from the bank (after an agreement in principle obtained at the start of the research). If the bank loan is ultimately not granted, the sum of money deposited is returned, but be careful, this must be specified in the reservation contract and the negotiation period cannot exceed 1 month. If both conditions are not met, you risk losing this advance, including if you go before a judge.

Be careful, the agencies will insist that you sign the reservation contract as quickly as possible. Most often arguing that another interested buyer will come by in the afternoon and will undoubtedly make a reservation contract. Do not sign it without having verified a minimum of information (nota simple, cadastral extract, reference value, cedula of habitability if it is required).

Twentieth trap – Not studying the sales agreement in detail

The sales agreement (“contrato de arras”) is the second contractual document in the purchasing procedure. It is a private contract between the buyer and seller in which the seller confirms his intention to sell, and the buyer confirms his intention to buy the property at the agreed price and on the specified terms.

This contract stipulates the maximum date on which the sale must be carried out by the notary. The buyer must ensure that he will have the necessary time:

●    To gather all the documents necessary for signing the notarized deed of purchase; in particular powers and marriage certificates certified, apostilled and sometimes translated if required.

●    To release funds if they have requested financing or transfer funds from other accounts (for example if they are outside the European Union or if life insurance needs to be collected).

It is particularly at the time of signing the compromise that one must be vigilant in the negotiation and drafting of possible suspensive conditions (obtaining a loan, purging of easements or charges encumbering the property, request for regularization of the areas and works with the Property Registry or Land Registry, etc.).

Upon signing this contract, the buyer must pay a deposit to the seller, generally up to 10% of the sale price of the property (less the amount paid during the reservation contract). If after signing the sales agreement, the seller ultimately decides not to sell you his property, he will have to pay you double the amount of the deposit that you paid him. If it is you (the buyer) who ultimately decides to no longer purchase (apart from the suspensive conditions), the amount of the deposit will be lost.

Be careful, if the contract does not contain a clause specifying that the purchase of the property is conditional on definitively obtaining the bank loan and if you do not obtain a mortgage loan, you will lose the 10% deposit! Except in Catalonia which included it in the Autonomic Law. This is why we advised you in our previous article The 17 pitfalls before purchasing real estate in Spain to find out about mortgage loans before looking for your home. For everything related to financing (in particular the underestimation of the duration of obtaining the mortgage and the total cost of acquisition), also refer to this article.

Our advice to avoid taking risks, include in the sales agreement a fairly long maximum period (3 or 4 months), in order to avoid losing the amount paid during the sales agreement. And to have time to have a fallback solution. If you have the funds before, after 2 months for example, nothing prevents you from signing beforehand.

If the buyer has the money available and is not dependent on a mortgage loan, then it is perfectly possible to skip this step and go directly to the final deed of sale.

Warning: the property may still escape your notice even if you have signed the sales agreement! The signing of this deed does not prevent the seller from selling to a better buyer, provided that he pays the evicted buyer double the deposit paid.

To properly prepare your banking file, read our article: Setting up the real estate bank loan file from A to Z

Twenty-first trap – Not making a certified and apostilled copy of the marriage contract

You are buying as a couple and you have made a marriage contract. You must then certify the marriage contract with a notary in your country. Then apostille it. And make a sworn translation that you will take to the notary on the day of signing the sales contract.

The Hague apostille is a formality consisting, after verification of the quality, the seal and the signature of the author of a document, of affixing a stamp, called an apostille, to the document. This formality certifies the origin and signature of the document but does not confirm its content. It is carried out at the regional Courts of Appeal, and it can take a few days.

Twenty-second trap – Not being present or represented on the day of the tasacion

If you apply for a mortgage loan from a bank in Spain, you are required to have a tasacion carried out , that is to say an estimate of the property by an expert (a tasador), generally an architect.

The value of the pile is very important:

●    Some banks will choose the value of the investment as the basis of the loan and not the purchase value of the property. They will then lend you 70% or 80% of the value of the loan.

●    Others will choose as the basis of the loan the lower value between the investment and the acquisition value of the property

To get the highest loan, in either case your goal should be for the value of the loan to be as high as possible.

And for that, you must be there or be represented by a Real Estate Advisor . It will be necessary to show the tasador the qualitative advantages of the property and present comparable elements at equivalent or higher prices in a nearby environment. The real estate agent can also play an important role in the appreciation of the tasador.

The tasacion is also an additional control tool between the reservation and the sales agreement. If the seller accepts it, you can, even without applying for a mortgage, call on a tasador. The price of this service is reasonable (300 to 600 euros) and this can prevent you from overpaying for a property. For example, if the value of the package is 30% lower than the offered price, you will need to think about it and certainly review your offer.

Tip that very few buyers use: if the value of the purchase does not suit you and if you have valid arguments, you can request a revision or another purchase.

To find out more about tasacion, you can read our article How to value real estate? Make a “tasacion”

Twenty-third trap – Do not negotiate the purchase price!

The negotiation of the chosen property is being prepared. We detailed it in our article How to negotiate the price of real estate in 21 lessons?

Beforehand, all real estate is negotiated in Spain, as elsewhere. But it is not enough to arrive in front of the owner (or the real estate agent who represents him) and say “I am offering you 195,000 instead of 215,000”, you have to ARGUMENT !

To do this, it is necessary to carry out a study of the value of equivalent properties in the area, identify the defects of the property, list the work to be carried out and their value, etc.

Call a Real Estate Advisor is the best solution: residing in Spain, knowing the market and speaking Spanish fluently, the real estate advisor will have an easier time negotiating at the right price than a foreigner not residing in Spain, not knowing the market and not speaking the language . Simply negotiating the price by a Real Estate Advisor will allow you to make the cost of their service profitable.

Negotiation is a fundamental step. Obtaining the best price requires perfect mastery of the market based on experience combined with the ability to negotiate with serenity and openness to dialogue. Professional negotiation, adapted to each particular case, and based on technical arguments makes it possible to obtain the best possible agreement for a secure investment.

Also remember that some agencies tend to have a price for “foreigners”. It's up to us to bring them back to market reality!

Twenty-fourth trap – Do not negotiate the real estate agency commission

More and more real estate agencies take a commission from the buyer, in addition to the commission from the seller. This is the double commission. It is almost systematic in the Valencian Community, in half of the cases in Andalusia and in a third of the cases in Madrid and a little less in Catalonia.

This commission is often hidden in the small print of the visit forms that the agencies make you sign. And they are often expressed excluding taxes (so add 21% for tax included).

Here too, this commission is negotiated. For example, from 3% excluding tax (3.63% including tax), you can negotiate at 2.5% or even 2%.

Most often, the agency will accept so as not to lose the sale.

Twenty-fifth trap – Underestimate the time it takes to obtain the NIE

Spanish law requires any foreign property buyer (even if they are a citizen of a member country of the European Union) to have a NIE (Foreigner Identification Number, Número de Identidad de Extranjero) to be able to purchase a property real estate in Spain.

French-speaking residents in Spain must also have one. If you are a resident and you do not have it, you must request it at a police station. Non-resident French speakers can make this request directly to the Spanish embassy or consulate closest to their home in their country of origin.

And if there are several buyers, for example a couple, you will need one NIE per buyer.

Be careful, it is better to take care of this from the Reservation Contract (see Nineteenth trap above). And even before searching for the property because it takes at least 8 weeks to obtain it. Sometimes much more. And without NIE no purchase possible!

It is even longer if it is a company buying property in Spain. It must be registered with the Ministry of Finance in Spain to obtain the NIF, the company's tax identification number . And you will also need the NIE of the manager and possibly of the partners holding more than 25% of the shares.

For more information on the NIE and the procedure for obtaining it in Spain or in Spanish consulates abroad, you can read our article How to obtain the NIE?

Twenty-sixth trap – Do not open an account in Spain

Although it is not a legal obligation, it is recommended that the buyer of real estate in Spain open a current account with a bank in Spain. In fact, payment for the property (most often by bank check or OMF transfer) but also taxes and fees linked to the purchase will be facilitated from an account in Spain. This will also allow you to set up automatic debits for ordinary bills (gas, water, electricity, condominium fees). If you have taken out a mortgage loan in Spain, the bank will require you to open an account in Spain.

If your funds are available outside of Spain, transfer the funds from your bank account outside of Spain to your Spanish account early enough. And ask your issuing bank to send you a copy of the transfer. Banks often make these transfers late and this can then lead to cancellation and postponement of the signature at the notary.

However, since 2014 for the French, SEPA payment has made it possible to pay Spanish bills (and therefore direct debits for water/electricity/etc.) from their bank account in France. Likewise, you can pay all your Spanish taxes (IBI/Basura/non-resident tax) from the French bank account. In France, SEPA transfers are free up to 50,000 Euros.

To learn more about payment methods, read our article 7 payment methods to buy a home in Spain

Twenty-seventh trap – Take a variable rate loan

This is no longer the case today, but 10 years ago more than 90% of loans granted by Spanish banks were at variable rates. This was one of the main causes of the Spanish real estate crisis at the time. Variable rate loans are dangerous. And particularly with the very recent rise in inflation.

If you take out a loan with a Spanish bank, ask for a fixed rate loan , but be careful the rate will often be around 0.5% to 1% higher than what you could obtain in your country! Also remember that the Spanish bank will most often only lend 70%, or even 65%, of the acquisition or appraisal value of the property (“tasacion”).

You can also opt for mixed rate loans (fixed rate over half of the borrowing period, and variable over the other half). This allows you to benefit from a reduced fixed rate. And you can always renegotiate the variable rate in the middle of your loan.

To properly negotiate your bank credit, read our article How to negotiate the price of real estate in 21 lessons?

If you want to calculate your monthly repayments, read How to calculate monthly bank payments?

Finally, to know the total cost of your credit, read The hidden costs of a bank loan

Twenty-eighth trap – Take out life insurance combined with the loan

If you take out a loan in Spain, the Spanish bank will also take the opportunity to ask you to take out life insurance. Please note that this is not obligatory. And after a certain age and for large loan amounts, this can be very expensive, up to… €3,000 per year! If you want to take out life insurance to secure yourself, our advice is to compare the different offers because the prices vary from 1 to 3 depending on the company! This is less of a problem for home insurance which is much less expensive.

Attention ! In the new loan contracts offered by Spanish banks since 2019, they offer a common interest rate without bonus, and several subsidized rates subject to paying your salary and/or taking out life insurance and/or taking out home insurance and/or subscribe to an alarm system. This is a new disguised way of providing you with paid services. And if you accept, you will not be able to cancel them otherwise you will return to the initial, less advantageous rate.

Twenty-ninth trap – Do not choose the notary… if possible French-speaking!

According to Spanish law, the transfer of ownership from the seller to the buyer is certified by a Spanish notary chosen by the buyer. Do not let the seller, agency or bank impose a notary on you unless they have excellent references.

You can choose French-speaking notaries in major cities (Madrid, Barcelona, Valencia, Seville, etc.). They will make it easier for you to read the sales contract by translating the most important passages for you during the act. And, in the case of a loan in Spain, it will also be easier for you to pass the new mortgage test put in place by the new Law of March 2019 and managed by notaries.

If the chosen notary does not speak French and if you do not speak Spanish, you must be assisted by a translator on the day of signing the sales contract.

Here too, calling on a Real Estate Advisor simplifies the procedure because they already have a network of trusted French-speaking notaries.

Trap Thirtieth – Not Asking and Not Reading the Sales Contract Carefully

Copies of the notarized deed of purchase (“Escritura Pública de Compraventa”) and the bank loan contract are available at least 2 days before the final signature at the notary. You must study them closely and, above all, check that the words “the purchased item must be free of charges” are present. Double-check your identity, NIE number, address, profession, marital status and email.

These are complex and lengthy legal documents. If you do not read Spanish and if you have little knowledge of law, you must contact a Real Estate Advisor or a French-speaking lawyer.

Thirty-first trap – Do not visit the notary one last time before signing

A last look the day before or the morning of signing at the villa or apartment costs nothing. Especially if the seller has moved in the meantime.

This allows you to check that the furniture you negotiated is indeed present. But also that there have been no modifications to the property or any damage since your last visit (water damage, fire, damaged partitions, etc.). You will also check that the property is unoccupied, unless it has been agreed that the tenant remains in the property. You can also read the electricity, water and gas meters (take photos).

If the seller or the agency refuses this last visit, there is certainly a problem.

Thirty-second trap – Do not ask the notary for details of taxes and costs linked to the sale

The notary will not make a call for funds for the balance of the purchase value of the property. You will make payment directly to the seller on the day of signing. And possibly another separate payment to settle a mortgage loan still outstanding.

On the other hand, you can ask that the notary takes care of the payment of the tax on the purchase ( the ITP, the tax on the transfer of assets ), the registration in the Property Register and the gestoria (the management of these operations). To do this, you ask him to provide you, the day before or even the day of signing the sales contract, the details of the provision of funds in which will appear the amount of the ITP, the notary fees, the cost of registration in the Property Registry and the cost of the gestoria. You can pay this deposit just after signing the deed of sale or even the next day by simple transfer from your bank accounts in Spain or outside Spain to the account indicated by the notary (without forgetting the reference given by the notary) .

The notary will always ask for an amount greater than what is necessary. The balance will be refunded to you 2 or 3 months when the property is registered in the Property Register.

Thirty-third trap – Not bringing all the documents to the notary on the day of signing

This seems obvious but sometimes buyers think that because they have provided all the documents by email to the notary or the agency, they do not need to present them on the day of signing the sales contract. Some of these documents are originals (powers of attorney or certified apostilled copies) and it is essential to bring them to the notary.

We advise you to bring the following documents to the notary on the day of signing:

●    The passport or identity card (valid) of each buyer

●    The NIE of each buyer

●    The NIF, the certified and apostilled copy of the company's statutes and Kbis if you buy via a French SCI or SARL for example

●    The copy of the previous bank transfers or payments during the reservation (contrato de reserva) and the sales agreement (contrato de arras) with the mention of the debited and credited accounts (IBAN in clear)

●    The certified and apostilled marriage contract (with a sworn translation) and the extract from the marriage register in the case of a marriage contract.

●    Copy of payment transfers (OMF transfers) or certified bank checks.

Thirty-fourth trap – Paying more than 97% of the value of the property to a seller residing outside Spain

You are buying an existing property whose owner does not live in Spain. In this case, you must withhold 3% of the amount of the sale as withholding tax for non-residents.

This withholding will be paid to the Spanish tax administration via the notary (if you choose that he manages the payment of taxes and registration in the Property Registry). It will therefore appear in the provision of funds which we speak of, above, in the thirty-second trap. At the notary, you therefore only pay the seller the 97% balance. If you pay 100% of the property to the foreign seller, the Spanish tax authorities could take action against you in the event of non-payment of the seller's taxes.

Thirty-fifth trap – Not paying off the seller's mortgage to the bank

In the event of a current mortgage on the property, it is you who will pay it off on the day of signing the sales contract with the notary! The seller can do this before. But most often it will be up to the buyer to do this at the time of signing at the notary.

When signing with the notary, the buyer makes a direct payment of the mortgage balance into the bank account linked to the mortgage. The seller's bank will provide a document specifying this amount a few days before. It is best to do this by OMF transfer (immediate transfer via the Bank of Spain). It is also recommended that the notary withdraws a lump sum of 800 euros from the amount owed to the seller to “erase” this mortgage from the Property Register.

The payment to the seller will obviously be reduced by the mortgage balance paid and the amount of cancellation of the mortgage in the Property Register.

Trap Thirty-sixth – Paying the Property Tax in Full (IBI)

Normally, the property tax, IBI, for the current year is to be paid proportionally by the seller and the buyer in proportion to the duration of occupation of the property of each.

Let's assume that the IBI is 800 euros and that the sale is made on September 30. Then the seller will have to pay 3/4, or 600 euros (period January to September), and the buyer 1/4, or 200 euros (period October to December). Generally, this compensation is done in cash, with the buyer giving his share to the seller. In fact, the IBI of the year of signature will always be in the name of the seller, and therefore the invoice will be addressed to his name. And often if the signing takes place in November or December, the IBI for the following year will still be sent to the seller, and the entire amount due will then have to be reimbursed.

Thirty-seventh trap – Pay directly to the seller

In Spain generally, the notary does not play the role of financial intermediary during a real estate transaction as in France, Belgium or Switzerland.

Payment for real estate in Spain upon signing the sales contract with the notary is made directly to the seller. On the day of signing the deed of sale with the notary, you can formalize the payment for your real estate purchase in Spain in 7 different ways . The two most common payment methods, used in over 95% of transactions, are a certified cashier's check or an OMF transfer (secure immediate transfer via the Bank of Spain). More rare, a simple transfer from your Spanish bank, a transfer from your bank abroad, a transfer from a notary account, a transfer from a real estate agency account or a payment in cryptocurrency!

Regarding payments for the two contracts preceding the sales contract with the notary, at the time of reservation or sales agreement, the buyer can pay in cash (for an amount less than 10,000 euros) or from a personal account abroad (transfer from a French, Belgian or Swiss account for example), or from a personal account in Spain. Payment is made either to the seller or to the real estate agency.

Thirty-eighth trap – Not asking for the keys and a copy of the deed of sale

Handing over the keys is mandatory at the time of signing the sales contract with the notary. It occurs at the time of payment of the balance of the sale. Ask carefully if there are no other keys available.

Also ask for a printed copy and a copy by email of the deed of sale (“copia simple”) before leaving the notary's office. It will allow you to change ownership of different contracts (electricity, water, gas, alarm, co-ownership, etc.).

You will have to wait approximately two months before final registration in the Property Register.

To avoid all these pitfalls, contact a Real Estate Advisor

What is the alternative to avoid all the previous 21 pitfalls?

It is quite simply, when purchasing a home, to contact a French-speaking real estate advisor . It is he who will carry out the administrative and legal checks of the property for you, and who will accompany you throughout the legal procedure until the final signature at the notary. The real estate advisor will save you a lot of time, he will avoid unpleasant surprises and very often he will save you money before, during and after the purchase of your property.

During this entire phase of acquisition of the property, your Real Estate Advisor will provide all the services that we have spoken about previously: in particular, he will control the property administratively and legally, he will check the reservation contract, he will help you to obtain your NIE, open your bank account, and put together your financing file, he will represent you on the day of the tasador's visit, he will negotiate the price, he will check the sales agreement contract, he will choose a French-speaking notary and he will assist you during the act of sale, and will be at your disposal for any questions. At the end of this phase, you will be able to sign the deed of sale with complete peace of mind at the notary.

@gwynj Yes she has a NIE. She came close to buying an apartment there a few years ago but life took her in a different direction. I'm planning a move to Spain also. We're looking for a detached house that has 2 separate units so we each have our own space. Kitchen bathroom etc. She wants to buy. I just want to rent. I'm selling my own house here in the states and do not want to be tied down by home ownership. So we agreed she will buy a house and I will be her tenant. Win win

@Guillaume BB98 wow thank you! If that doesn't cover everything I don't know what does Lots of good stuff in there!

@freise Thank you so much! I will forward this to her

@rogerroberts22 Thank you! Those are the horror stories I'd read most about - the water supply and community presidents.

@Lisestrahle Try and avoid Communities with Presidents and Secretaries. Well water is ok, but it's the person who has the key to the pump room that will make your life unbearable. Usually Presidents bann access to the pump room. So the person with the key is treated like a God and diverts the water to residents who secretly pay him  large amounts under the table. Its very common here in Spain and causes fights and even death threats. The Spanish take it as normal but for foreigners it's an absolute nightmare.

Would recommend get a good solicitor, there will be quite a number in Alicante specialising for purchasers from Northern Europe.

Thank you. I agree and will make sure she knows this.

@rogerroberts22why would you not want a property with a well, it's much better to be self sufficient and not have your water posiened then drink the government provided water, and why would you not want septic tanks? I want to be off grid do it's exactly what I want. So just wondering your reasons why?

@Lisestrahlewgats an NIE?

@Ascendinghigher There are several reasons why you should never buy a property in a Community of houses supplied only by Well water. By law, the Well must be outside  the boundary  of the Community to avoid contamination with sewage water in septic  tanks. This means housing the pump in a secure  shed with a lock and key. The well will be on farmland  NOT owned by the Community. Consequently,  only one Resident of the Community is permitted  to access the pump and allowed to set the days and hours each section of the Community receives its water. So the person who has the sole  key to the pump room has a stranglehold on the Community. This means this person can divert water without residents  knowing about it and can change the days and times at will. The Farmer  whose land the Community Well is located also banns other residents to the Well. Unscrupulous  Keyholders to Community  pumps accept bribes from residents  with large swimming pools and gardens. It is very common practice and very unpleasant. When trying to sell Community  properties with only Well water and septic tanks it can render these types of properties unsellable and in worse cases worthless.