Whether you’re buying or selling a property in Spain, you’ll need legal services and support throughout the process in order to avoid problems.

A solicitor in Spain can provide guidance throughout the buying process or simply assist you in a small part of it, whatever you require. The legal services and legal advice cover all the stages of the process, so you don’t have to worry about anything.

If you need to sell a property in Spain, it’s very important to get the right legal advice so everything runs smoothly, which is why it’s advisable to find a legal adviser with expertise in urban law.

Why You Need a Legal Adviser When Selling a Property in Spain

If you’re selling a property in Spain, it’s important to have a legal adviser to assist you in the process. Many sellers don’t do this and they leave everything to their real estate agent or try to handle things themselves. This is a mistake.

However, you need to make sure the sale is done properly so you don’t have to deal with any issues in the future. This is particularly important when you’re selling in a different country, which is why you must get professional guidance.

Here are some of the things an expert Spanish lawyer can help you with:

1. Taxation Liabilities

Having a Spanish lawyer by your side when selling a property in Spain will make sure that all the taxes you’re liable for are properly accounted for and paid for. They will also make sure you don’t overpay on taxes related to Capital Gains, which saves you a ton of money!

2. Spanish Purchase Contract Obligations

Having a Spanish legal adviser will keep you from suffering any legal consequences in the future relating to purchase contract obligations. They will also make sure that you get an “option to buy” purchase contract, which will protect you from buyers who don’t complete the purchase.

An option to buy contract is an agreement between two parties where an investor or tenant pays a fee in exchange for the rights to purchase property at some point in the future. You can have a straight option to buy a contract, which is a unilateral contract that only binds the seller to its terms.

Not to mention, they make sure the contract is worded and created correctly so your best interests are protected. Otherwise, if there’s an issue, your only option to receive adequate compensation would be going to court in Spain, something that should be actively avoided.

3. Holding Deposit Money

If the buyer has to hold the deposit money in an escrow account instead of receiving it directly, only a Spanish lawyer or public notary can hold that account, which is yet another reason why you need to hire one.

4. Property Misrepresentation

If you misrepresent the property you are selling in Spain, you are liable for future legal action. Hiring a Spanish lawyer will allow you to make sure that doesn’t happen and make sure the entire process follows protocol.

5. Loss of Sale

It’s not uncommon for house sales to fail due to property issues identified by the buyer’s lawyer. If the issues found can’t be resolved or the buyer’s lawyer fails to understand them, they will advise their client to withdraw or make the issue seem worse than it is, and you will lose the sale. An expert Spanish lawyer will be able to save the sale by providing explanations and effective resolutions.

6. Paperwork Completion

A Spanish solicitor will trace all the right paperwork for the buyer’s lawyers and  make sure you’re paying the right taxes. This will save you time because you won’t have to come to Spain to do that yourself and your Spanish lawyer will also deal directly with authorities, thus saving you more time and even money. They will handle all the requirements to ensure all the paperwork is in order, which will be a huge weight off your shoulders.

Other Requirements for Selling a Property in Spain

Many property sales and purchases don’t go through due to paperwork issues. If the Spanish notary offices determine that the paperwork has not been well prepared or presented, they will halt the property sale or purchase.

It’s essential that the legal processes are followed correctly, which is why you need expert legal advice.

When a sale falls through, it can be expensive for everyone involved and it also represents a huge loss of time. Not to mention, the seller is vulnerable to a breach of contract if they weren’t able to hold their side of things.

The documentation required when selling a property in Spain has increased in recent years. That means there are many more responsibilities to cover, which is not something you can do on your own and you definitely shouldn’t leave it to your real estate agent because they are not specialists in legal advice.

Are you ready to sell your property in Spain? Do you want it to go smoothly? If the answer is yes, contact us to enjoy the best legal services!

So if you decide to buy a property in Spain get in touch with the best english speaking solicitors in Spain.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Why You Need Legal Advice to Sell a Property in Spain appeared first on Property Lawyers.

A NIE Number (Número de Identificación de Extranjero), is the equivalent of a Spanish persons Número de Identificación Fiscal (NIF). It is a Spanish tax identification number given by the authorities/Police to foreigners wanting to carry out activities in Spain.

Your Spanish NIE  Number will start with a letter, followed by seven numbers and another letter in the end (for example : D7658824-A).

Each NIE Number is unique to one person and it is neither transferable nor does it expire (NIE Numbers issued in the past may have had a expiry date in some area’s).

If you are planning on working in Spain or staying for longer than 3 months you are required to have one.

Why do I need an NIE number in Spain?

Your NIE Number is essential for a wide range of legal and informal purposes whether you are resident or non-resident in Spain.  If you want to buy or rent property, work and many other purposes you will need an NIE number but also for:

-Open a Spanish Resident Bank Account
-Buy, sell or insure a property
-Arrange credit terms or a Mortgage
-Pay Taxes in Spain
-Be paid for employment
-Use short-term employment agencies
-To study/attend University
-Apply for a business permit to start a business
-Register with social security and arrange receipt of social security benefits
-Apply for a driver’s licence/Transfer to a Spanish Licence
-Pay utility bills
-Inherit assets

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Spanish NIE Number appeared first on Property Lawyers.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post appeared first on Property Lawyers.

Please note, this article is not intended as legal advice. A reputable, local lawyer can provide guidance with buying or selling your property.

Step 1: Hire a Spanish lawyer

Before you start the buying process, it’s advisable to find a good local lawyer. They’ll help you successfully navigate the ins and outs of the sale, including preliminary contracts and their terms.

With good research and the right lawyer, you’ll be stepping through your new front door in no time.

Step 2: Set up a preliminary contract

Preliminary contracts act like an agreement between the buyer and seller. The terms and conditions are laid out for both parties; the buyer agrees to buy and the seller agrees to sell. This gives both parties time to get everything in order before signing the deeds.

These preliminary contracts are signed towards the beginning of the buying process. At this stage, a deposit is usually paid and held. This is often 10% of the purchase price and in many cases isn’t refundable.

Before signing anything, make sure your English-speaking solicitor has seen the document and explained it to you in full. You may need to translate any documents you don’t understand.

Types of preliminary contracts

One typical agreement is the contrato de arras. These contracts lay out the terms for what happens if the buyer or seller pulls out. If the buyer backs out, they lose their deposit. If the seller backs out, they pay double the deposit back to the buyer.

These contracts are designed to provide security for both parties; neither wants to be responsible for the sale falling through, losing a large amount of money in the process.

However, there are other types of contracts and you may find yourself signing something a little different. For example, you might also come across reservation contracts (documento de reserve), where the buyer pays a small deposit which reserves the property for a period of time (often 30 days). The deposit is lost if the buyer backs out.

Another type of contract you might see is the option contract. We recently published an article about these contracts, detailing how they work.

It’s important to know that, in some contracts, there is no mechanism for backing out. Make sure you fully understand everything before you sign, including the consequences of a sale that falls through.

Step 3 : Don’t forget the taxes whenbuying and selling a property in Spain

If you’re a UK national, the Foreign and Commonwealth Office has comprehensive advice about buying and selling property in Spain. They cover aspects including legal advice, mortgages, tax, rentals, and where to find extra guidance.

Property in Palma de Mallorca

Do I really need a local lawyer in Mallorca?

An independent local property lawyer is there to protect your interests. One part of the lawyer’s job is to do due diligence checks. This includes confirming ownership via the land registry and looking at debts on the property and other actions like:

• Property register checks – to ensure the property description and legal owner match and to find out if there are any charges or encumbrances.
• Planning checks – to ensure the property was built with the appropriate building licence and planning permissions. Or in the case of an off-plan property, to make sure the developer has all paperwork in order.
• NIE Number – This is the Spanish tax number which will allow you to pay taxes in Spain. This document is obtained at the police station. The solicitors members of PropertyLawyers© will assist you with your NIE application in due course
• Private Contracts – A private purchase contract is a contract between the buyer and the vendor. It will be prepared by your lawyer and will contain all the agreed points
• Tax checks – to ensure the current owners are up-to-date on payment of all taxes related to the property in Mallorca.
• Community checks – to ensure the property is up-to-date with payments to the community of owners.

Your Mallorca lawyer will also help you navigate the local system. The conveyancing system works differently to countries like the UK, paperwork can be different, and there are specific fees, permits, and taxes that need to be considered.

What’s more, if you can’t be present to sign all the relevant paperwork, you can use power-of-attorney to authorise your lawyer to do these things on your behalf.

When choosing a lawyer, it’s important to make sure that they speak your language, as well as Spanish/the local language. Language barriers create difficulties at the best of times. But when it comes to signing contracts and negotiating, it’s vital to have an expert who can help you communicate.

Mallorca’s best lawyers are here to help

At Property Lawyers, we’ve helped over 1000 clients find a local lawyer in Spain who’s ready to protect their interests when buying or selling a property. To get started, browse our list of lawyers in Mallorca, Menorca or Ibiza.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post The Process of Buying a property in Mallorca or Ibiza appeared first on Property Lawyers.

Taxes are charged on property transactions in Mallorca, as they are in many other countries; thus, prospective buyers will require a Spanish tax number to purchase a house on the island, which can also be used for other requirements. For a nominal price of 15 Euros, the so-called “Number de Identificación de Extranjero” can be obtained from Spanish consulates around the world.

Before buying, inspect the property and go through the contract with a fine-toothed comb with a lawyer.

Once the big day of the visit arrives, it is critical to properly and thoroughly inspect the property. You should be able to meet your specific needs in your newly purchased home. Before buying a home, it is essential to get professional assistance and employ a lawyer. Seek assistance from an outside estate agent who is acquainted with local laws and procedures. It is critical to pay attention to existing defects in the house and inquire about the last time the house was refurbished to eliminate personal losses during private purchases.

Before you sign a pre-contract (which is a legal obligation in Spain), make sure to give your lawyer time to see the Mallorca property and examine the the property documentation, including Title Deed, Nota Simple, approved Town Hall plans, check debts and encumbrances on the property. It is preferable to insist on a custom contract rather than using a conventional contract template from the estate agent even a simple reservation or deposit contract.

Before signing the contract, be sure that the seller’s signatory is the legal owner of the property in Mallorca and that everything you agreed verbally has been written down in the contract including the furniture or improvements to be made in the property.  

In 2020 and 2021, Mallorca prices for houses and flats increased considerable, but experts say that this will continue.  Houses and apartments rates in and around Palma de Mallorca have increased the greatest, by 15% (an average of 5,390 Euros) over the previous year. Buyers are younger than they were a few years ago: average international buyers used to be in their 60s, whereas today’s buyers are often between 40 and 50 years old.

 The increase in the Spanish market is witnessing an upswing due to increased demand from international investors.

This article was written by the friendly editors of Property-Lawyers.com .  If you are a Mallorca property lawyer interested in contributing to our website articles , please contact our team.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .

The post Purchasing a Property in Mallorca appeared first on Property Lawyers.