Once an offer has been made and accepted on the property then typically the buyer’s lawyer will carry-out due diligence checks on the property, and assuming no issues arise, the next step is to prepare and sign what is known as a ‘deposit contract’. This involves a deposit being paid by the purchaser which effectively grants an exclusive right to purchase with a date being fixed for the purchase to be finalized.
Should the sale not go through due to a change of heart on the part of the purchaser then their deposit, often 10% of the purchase price, is lost. Should the failure of the property transfer be caused by the vendor then they are obliged to pay the purchaser 20% i.e. double the amount of the deposit.
Once again assuming that everything happens smoothly the next important date is ‘the closing’. This is a meeting that will include any or all of the following: the purchaser, the vendor, their legal representatives, the bank representatives and the notary. The notary is required as the purchase deed is a public document and requires a notary to formally witness it.
At the closing stage it will be necessary to sign the public deeds of ownership though it is sufficient for your lawyer to be present if they have full power of attorney. Payment is made typically with a bank guaranteed cheque though it may be possible to use the notary’s escrow account. The public deeds will contain a detailed description of the property as well as the details of the purchaser, vendor, the price, form of payment and any other relevant conditions.
Your lawyer will advise you on all aspects of the process so as to be sure that you are not in danger of being defrauded or somehow losing the property or signing terms that are disadvantageous to you.
Useful Tip: Always make sure to get information on a Spanish lawyer’s professional background as well as the legal fees they will charge before you commit to using their services. If you do need a Spanish lawyer consider this free service from Advocate Abroad – Lawyer Finder Spain