Buy Spanish property Andalusia

Tips and information about buying in Spain

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Buying your Spanish dream home

Please read the Tips and Information below


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Buying now or wait?
Spain and specially the Costa del Sol & Andalucia still are the most favourite destination to buy property abroad. The current economic situation does not detract from the charm of the country and the pleasure to live there. And real estate has always been a good long term investment.

A good time to invest
The current property market is moving very strong. There are fewer houses sold and developers face challenges. This means there currently is a large surplus of Costa del Sol properties for sale and prices are reduced. Is the soil achieved? Determining the right time is not easy but one thing is certain, the properly prices Andalusian property for sale have reduced significantly since 2008. This is why the current market offers opportunities.

Be realistic
A good property in a good location will reduce less in price. You can miss a great opportunity by waiting for an lower price. Don’t look only for the lowest price, but also to the location and quality of the property for sale on the Costa del Sol & Andalusia. A good home with a realistic price will not suddenly reduce with 50%.

Mortgage and own funds
It’s certain that buyers with cash are in the advantage now. Non-residents in Spain will usually obtain up to 70% mortgage (subject to personal circumstances). The buyer costs is about 10% of the purchase price. So your own funds will be approximately 40% of the total purchase price.

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Advice for buying a new development in Andalucia

 

Bank guarantee
Each Spanish property developer is legally obliged to give a bank guarantee by signing the private sales contract. This bank guarantee should be equal to any payment made. If a developer fails to meet his obligations, then the buyer is sure that his money will be refunded.

10 Years building guarantee
Spanish property developers are legally obliged to give a 10 years construction guarantee on new build properties. This insurance is governed by an insurance company.

Spanish building licences
Request your estate agent for copies of all required building licence and cadastral data of the complex or house to be build. Also the name of the developer, architect and constructor, all floor plans and a list of all technical installations, materials etc.

Additional legislation in Andalusia
From the 11th of October 2005 Andalucia has a new law (Decreto 218) which required project-developers to provide you a D.I.A. This document indicate all the data of the development such as the names of the developer, architect and building company, the required building licence and cadastral data, floor plans on a minimum scale of 1 to100 and a list with all the technical installations, used materials, colours etc.

Legal or illegal
Very important when buying a new house on the Costa del Sol & Andalucia is the first occupation licence, or the “Licencia de Primera Ocupación”. This document is provided by the Town hall after an inspector has checked whether the complex or house is built according the building regulations or not. You should under no circumstances sign a sales contract at the notary without this document. Without this document the house is illegal. Ask your real estate agent for more information.

Lawyer
In Spain it is custom (as in The UK) that a buyer has his own lawyer. How reliable a seller may seem, always ask a independent lawyer to check everything beforehand. The lawyer investigates all paperwork and provides proper handling of the sale at the notary. Of course this will cost you money but see it as an investment in safety. The cost for a lawyer is usually around 1% of the purchase price. In Spain you’ll find many English speaking lawyers specialised in Spanish property sales.



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Advice on buying a resale property


Purchase Deed “Escritura”:
In the Purchase Deed you’ll find:

  • The name(s) of the owner(s).
  • Description of the property registration. Especially in rural areas, properties are sometimes offered as a residential house while it’s registered as a agricultural barn or cattle shed. These are converted into a house without licence, and without changing the registered description in the Land Registry from barn into a residential house. In that case the property is illegal.
  • The official measurements of the plot and property.
  • The official build m2 of the house, outbuildings, garage etc. as registered in the Land Registry. This can sometimes differ from the current build-up area. When the m2 on Title Deed does not match the reality ask your agent for advice.
  • In the purchase deed is also indicated whether the property has a right of inheritance.
  • A reliable broker will tell you all about

Extract of the Land Registry “Nota Simple”
This is a succinct extract of Land Registry. It contains the current cadastrl data, and also shows you possible mortgages or debt on the property. It also tells you about possible rights of inheritance. A extract of the Land Registry is not valid legal proof and is only for your information. Ask your agent to determinate the document.

Homeowners Association “Comunidad”
When buying an apartment on the Costa del Sol & Andalusia you have to know the costs regarding the community charges for the homeowners association. Ask your agent for a copy of last bill, and a copy of the last annual meeting. It contains the rules of the community and a breakdown of the costs and expenses.

A detached or semi-detached hous on the Costa del Sol situated in a urbanisation can have community cost as well. These are usually the shared maintenance costs of roads, street lighting, public green etc.

Property Tax (“IBI”)
The declaration states the cadastral value of the property listed. This value is defined by the municipality and is not an indication of the true value. In some cases (for new build houses), the cadastral value of the house has not yet determined by the town hall, and therefore this tax is still not paid. Ask your broker for more information.

Electricity “Electricidad”
Almost all properties are connected to the electricity network. In rare situations in some rural areas inland Andalucia, there is no connection to the electricity network, owners then have to provide their own electricity by solar panels or a generator.

Water "Agua"
Almost all properties are connected to the town hall water. In rare situations in some rural areas inland Andalusia, the water comes from a private water-well.

Gas "Gas"
In most Andalusian areas there is no connection to a nature gas network. Most of the people are using large or small gas cylinders. These are often delivered by a supplier.

Telephone- en internet connection
In some areas there is still no telephone landline. In most cases there are good alternatives through satellite connections or antennas. Through these connections you can also have an internet connection. You can ask the owner for more information.

Lawyer
In Spain it is custom (as in England) that a buyer has his own lawyer. How reliable a seller may seem, always ask an independent lawyer to check everything beforehand. The lawyer investigates all paperwork and provides proper handling of the sale at the notary. Of course this will cost you money but see it as an investment in safety. The cost for a lawyer is usually around 1% of the purchase price. In Spain you’ll find many English lawyers specialised in Spanish property sales

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