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Purchase Process

Property Buying Process – A Simple Guide

Property Buying Costs in Javea

When buying a property in Javea you will need to allow 13% within your total budget and is broken down into the following:

* If you are buying a plot of land from a developer this will be subject to VAT/IVA instead of stamp duty. VAT/IVA is 21%

* If you are buying with a mortgage there will be additional costs to consider such as bank valuation, transmission tax 10%, notary, property registration, admin for new mortgage deed and mortgage set up fees.

Other fees to consider:

 

The timescale for buying a property in Javea can be broken down as a guide to:

 

Property purchase process in 3 steps.

Step 1: Reservation deposit

Once the purchaser has found the property they want to buy and have agreed an offer, they will be asked to pay the reservation deposit as soon as possible (usually between 3000 Euros – 6000 Euros) and sign the reservation agreement.

This takes the property off the market for you while your appointed lawyer does the first checks to establish its legal viability, ensure that any debts on the property are known and allocated to the vendor and that the property is duly registered and fully legal.

Step 2: Purchase contract and payment of 10%

The lawyer will draw up a pre-sales contract (compra venta) which will confirm exactly what you are buying and the timescale of the sale. At the signing of this contract, you will pay the balance of the deposit (usually 10% of the selling price less the reservation deposit already paid) to the vendor.

**This contract is legally binding for you and the vendor. If you do not continue with the purchase, you lose your deposit, if the vendor does not continue with the sale or if the property is not viable for sale, they have to give you twice the amount of deposit you have paid.

Step 3: Completion at Notary

The purchaser and vendor and/or their lawyer will meet at the Notary.

A Notary is an expert in Spanish law, legally trained and mandatory for any property transaction in Spain. They are employed by the government and so officially do not act for either the buyer or vendor. They will ensure that all the paperwork is in order before witnessing the transfer of funds and signing the title deeds of the property over to the purchaser.