Lawyers and costs
Past experience shows that foreigners mostly call upon a Spanish lawyer for legal advice in the purchase of their Spanish property. As compensation for his work in Real Estate transactions, the lawyer´s fee usually amounts to around 1%-1.5% of the total purchase price (ex. 21% VAT).
Your lawyer in Spain will give you the legal and fiscal advice that you will need, as a potential buyer of Spanish property. Past experience has also shown us that the support of a Spanish lawyer is not only reassuring but essential.
In addition, more and more foreigners require other legal services from their lawyer, such as employment law issues, tax issues, divorces, social insurance or inheritance issues etc.
Mainly through Estepona Living´s work in Real Estate, we have successfully collaborated with several efficient law firms over the last 15 years.
For more Information on recommended companies: Lawyers
Frequently asked questions:
Apart from licenses, council planning and past transactions on the property, your lawyer will check a number of documents before you complete a purchase:
The registered title deed of the property (Escritura/Nota simple). (Escritura/Nota simple).
In this title deed he will find a description of the property, the details of the owner, if there is a mortgage or court embargo existing on the property.
Receipts of the owner’s annual property tax (IBI).
The IBI receipt will show you the property’s cadastral reference number and also the Valor Catastral, the official assessed value of the property. This is very important because various taxes are based on it and it will show no outstanding taxes are payable.
The Cadastral certificate.
This document shows the location and exact boundaries of the property. It also gives a description (in words) of the property as well as a graphic representation, either by a plan or aerial photograph.
Your Spanish lawyer will equally pursue the following issues on your behalf:
Working out of the cost and duration of the transaction.
Efficient organising of the purchase procedure and transaction.
Assessing the sales and purchase agreement and contracts.
Where necessary consulting with the lawyer of the selling party.
The understanding and explanation of the Spanish legal system and actions taken.
Succesful conclusion of the transaction and submittance of the proper documents.
The presence at signing at the notary and the assessment of the documents in the light of the agreement of purchase and sale as previously agreed between parties.
In spain the lawyer actually fullfils most functions that a notary would have in lots of other countries. For example, the Spanish notary has no research tasks or obligations, which is the case in many other countries.
Procedures at the notary office with regard to real estate transfers are equally different in Spain.
The Spanish notary office helps customers daily from 10am to 14.00pm, without any previous appointment. Clients normally arrive together with their lawyer, real estate broker, and bank people (in case of a new or existing mortgage on the property).
The lawyer will provide all the necessary paperwork, and the notary will start working. The final Escritura and mortgage documents (or mortgage cancellation documents of the seller) will finally be signed in presence of all involved.
In some cases we advise our clients to provide their lawyer with “Power of Attorney” . The lawyer can then sign and act on your behalf. This practice is very common in Spain, especially with regard to time savings for foreign property buyers.