The purchase process

Here we have prepared a purchase Guide for buying a home in Spain.

We at Checkpoint Real Estate has put together here a guide and some advices for you; before, during and after the purchase process of a property in Spain. Although there is no exact formula, as every transaction is different, here is a guide to help you with any doubt or questions you may have.

1) NEGOTIATION.
Once you have found your dream property, we will communicate your intention to the owner, we will specify the terms and conditions of the transaction, also if you have any wishes of when you would like the transaccion to go through, will be informed to the seller at this time. It is important to know that an offer in Spain is not binding, even if the seller agrees to the amount, you are still able to cancel the transaction as long as no contract has been signed by any of the parties. It is quite normal to come with a lower offer than the asking price, but again this depends on the quality and standard of the house. This do not normally apply to new homes purchased from the builder directly.  

2) RESERVATION AND PRIVATE CONTRACT.
When an agreement is reached between both parties, Checkpoint Real Estate will prepare the private contract of sale to make the reservation deposit of the property which is normally 10% of the purchase price. This is the next step for the buyer and seller. It contains the names and supporting documents of the parties, the identification of the property, also the bank details for where the deposit is to be made, the agreed sales price, the duration of the reservation and any additional clauses that have been agreed in relation to the purchase. The reservation amount is normally sent to the real estate bank account (Checkpoint Real Estate), where part of the money will be send to the sellers bank account which close the deal. The property will then be taken off the market.
As mentioned before it is normally 10% of the purchase price which is the reservation or deposit. This amount is paid directly to real estate bank account which is mentioned in the same contract. It is important that as a buyer you never send the money to another account then what is already in your signed contract between you as a buyer, the seller and the real estate agency. In the contract Checkpoint Real Estate have established the date for the final transfer of the ownership of the property before the Notary by signing the Public Deed, this is normally with in three month of when the contract was signed.
At the same time Checkpoint Real Estate request all documentation relating the property, from the Land Registry, (registro catastral), and Town Hall to ensure that they are in order, that there are no liens, debts of any kind or urban infractions. If any documentation is incomplete, for example, any part of it remains to be registered in the Land Registry, Checkpoint Real Estate will take care of this, together with the seller, of solving it so that everything is in perfect order and up to date at the day of the Notary.

3)  MORTGAGE.
For the buyers who require financing for the purchase of their property her in Spain, Checkpoint Real Estate will put them in direct contact with our collaborating banks so that they can provide them with a viability study and a mortgage offer. We work with several banks in Spain, and we will try to find a bank which speaks your language.
(If you have any queries of how to go a head for a bank loan, please contact us for a more personal help).

4) PURCHASE DEED.
Once the date and time have been set for the signing of the sale before the Notary, Checkpoint Real Estate will organize the appointment with the Notary, we will also send you all the necessary documentation to prepare the draft of the Public Deed of sale and review it together with you, so that everything is clear and understood before we go to the Notary to finalize the purchase of your home in Spain. Checkpoint Real Estate will also prepare a last viewing in your "soon to be come home" just to make sure that everything is as we agreed on with the seller. After having checked the property one last time, Checkpoint Real Estate will go to the Notary together with you and will be present throughout the meeting. Checkpoint Real Estate will translate all the documents and everything the notary will inform in this meeting. At this point, the sellers are paid the rest of the agreed price, the Public Deed is signed and you will receive the keys and possession of your new property her in Spain, as well as simple copies of the document that has been signed. This makes you the new owner of the house!
The original Escritura is taken to the corresponding Land Registry so that the property is registered in the name of the buyer. Once it has been registered the notary's office will notify Checkpoint Real Estate so we can contact you and give you the final original deed.

5) CHANGE OF DIRECT DEBITS.
The changes of ownership and direct debit of the contracts for supplies (electricity, water, gas, telephone, Internet as well as gardener and pool-service, community of owners and local taxes (I.B.I. and Solid Waste Collection Tax) will be made by Checkpoint Real Estate estate the day after the signature, and once they are all in the name of the new owner(s), we will contact you and give you the new contracts.

6) EXPENSES AND TAXES OF THE PURCHASE.
In addition to the purchase price of a property, there are some expenses and taxes associated with the sale of the property that the buyer must take into account. Below we summarize what each one consists of:
- Notary's office.
The notary's office is the place chosen normally by the buyer and the expense to consider at the moment of buying a property either of new construction or of second hand, called tariffs, fees of the notaries, can vary.
- Property Registry.
Registering the deed signed by the notary in the Land Registry is at the expense of the buyer, the fees are fixed by regulations and depend directly on the price of the property.
-Taxes associated with the sale and purchase of second-hand properties.                                                                                                           In this case, the Transfer Tax (I.T.P) must be paid, which is currently 10% of the value of the property.

Taxes that are only linked to the purchase and sale if the house is newly built. 
When the purchase is made directly to the property developer: New homes.  Apart of the VAT rate which is 10% of the value of the property. In addition, a tax of Documented Legal Acts must be paid which, from August 6, 2013, an extra of 1.5%, which again, only applies for new buildings and purchased directly from the developer or builder. 

7) GENERAL INFORMATION.
Checkpoint Real Estate will make sure that throughout the whole process from beginning to end, you will be kept informed about any situation about the operation of purchasing your home her in Spain. It is Checkpoint Real Estate that will prepare your bank account and also prepare a quote of house insurance which you can contract at the date of Notary, if you wish. The payment which is done to the seller(s) is also prepared by Checkpoint Real Estate. It is quite common that after moving in to you property in Spain, you would have quiries, from changing gas to electricity ore making improvements on your property from building a pool to changing a bathroom. Her at Checkpoint Real Estate we want to make sore that you know that we are here to help you and want to be your "checkpoint" hear in Spain for any doubt or question you may have.   We are here to help!