10 check points for trouble free property purchase

1. THE RIGHT ESTATE AGENCY
   Choosing an effective Estate Agent can make property purchase a pleasure from the start. The agency should offer a good selection of properties and provide assistance to help you become familiar with the area. Selecting a professional agent, like ASCENSO PROPERTY GROUP MARBELLA, will save you time and money
   
   
2. REAL ESTATE TAX RECEIPT
   Once you have chosen you property, 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. For new properties, ask the seller to show you the Declaration de Obra Nueva, the declaration of new construction, together with a copy of the Declaración de Alteración de bienes de naturaleza Urbana, the declaration of alteration of property of an urban nature, which both demonstrate that the property has been registered for eventual payment of I.B.I..
   
   
3. PROPERTY OWNERS COMMUNITY
   The community of owners is the legally registered body, which administers the urbanisation or apartment building.
   Check the latest receipt for the payment of monthly or yearly maintenance charges - cuotas de comunidad - and discover how much you will have to pay. Ask the president or the administrator for a copy of the meeting minutes and the community regulations. The minutes should highlight problems, such as failing water supply and the regulations will confirm your rights.
   
   
4. INSTRUCT A LAWYER
   A local lawyer must be instructed for your protection. can provide a list of experienced lawyers fluent in the language of the client who will undertake all the necessary checks, carefully and swiftly.
   Most lawyers will tell you in advance what their fee will be. About 1% of the purchase price.
   Using a lawyer in your home country could double or treble the bill!
   
   
5. CHECK THE PROPERTY REGISTRY
   The Registro de la Propiedad, the land registry office, is very important. The title owners of the property or land are registered here and are available to public inspection. Use it to find the name of the registered owner of the title deeds to the property.
   Any mortgages or claims against the titleholder will normally be registered in the Land Registry. Thus consult the registry to find out whether there exists a mortgage or embargo on the property. Do not buy a Spanish property until you have obtained a current Nota Simple (an extract from the title) from the Registro de la Propiedad.
   
   
6. CARE WITH CONTRACT
   Within a month of securing your property with say a 10% deposit, you should be ready to make a conveyancing deed, called in Spanish Escritura de Compraventa. Ensure that it contains an assurance by the sellers that the property is sold free of charges, tenants and mortgages.
   The buyer and seller, or their authorised representatives must sign this contract in the presence of a Spanish notario, 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.
   
   
• FEES AND TAXES
  Spanish property purchase attracts fees and taxes, which total around 10%. The notary's fee scale is fixed by law and will be a minimum of 300 €.
  The property registration fee, for inscribing the property in your name in the registro de la propiedad, should be about 150 - 300 €.
  Either transfer tax on resale properties is charged at 8% of the new escritura value, or on new properties, sold by a promoter, a different tax, I.V.A. (VAT) is charged at 8% of the selling price plus 1% stamp duty. Another tax is called plusvalía (local municipal tax) and varies widely. The tax is based on an officially assessed increase in the value of the land, since the last time the property was sold. Usually small for an apartment, but expensive on houses with large plots, not sold 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.
  
  
• FEES AND TAXES
  • In accordance with Spanish law, the buyer is responsible for:
    
    • Transfer Tax (I.V.A. + stamp duty when buying from a promoter)
    • Registration fees
    • Notary fee
      
      
  • The Seller is responsible for:
  • His own capital gains tax on any increase in escritura value
  • Plusvalía
  • Selling agent fees.
    
    
• 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).
  
  
• REGISTER THE PROPERTY
  The property must then be registered in the Property Registry office, in an Escritura Pública.
  Once you have signed at the notary, get this done quickly to prevent a mortgage or other charge being registered against the property, while it is still listed in the name of the seller.
  
  
• THE RIGHT ESTATE AGENCY !!!
  Once again, an experienced Estate Agent such as ASCENSO PROPERTY GROUP MARBELLA can help you through all of these steps by working with your lawyer to ensure you are fully protected legally. Just make sure you choose the right Estate Agent.

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