Frequently Asked Questions
Q: Why is it such a good idea for me to buy via Spanish Property Brokers?
A: There are many reasons but here are just a few:
1) Our services are independent and based on your best interests at all times. They are completely free to you both directly and indirectly therefore you gain considerable benefit without cost – indeed you can be sure of saving money but more of that later in point 4.
2) Property purchase prices are exactly the same whether you purchase direct from the developer or agent or with our help - indeed from time to time we may be able to negotiate a bonus or two for you depending on the circumstances of the purchase but more about saving money a little later in point 4.
3) Our exclusive arrangements with some of the most respected Agents on the Costa Blanca/Calida, means we are able to offer you the safety and security of dealing only with carefully chosen, experienced people in Spain with the same high standards of ethics and customer care as we ourselves offer you. Your best interests will always be our first and only concern.
4) If you decide to purchase with us then you will enjoy a unique and very valuable bonus: Cash-Back Offers apply to all our properties viewed first with us regardless of which of our Agent or Developer friends you choose from. This is your guarantee of buying the exact same property at the exact same purchase price but for substantially less than if you had purchased direct or via other Agents.
The actual cash-back sum varies depending on whether it is a new-build or re-sale and of course with the purchase price but it will always be very worthwhile and often very substantial – please check with us for the general rules and then for confirmation of the exact value of your Cash-back for each property you are considering. You will buy the exact same property, at the exact same purchase price, for less with us!
5) We offer you the extra reassurance of dealing with a well established UK business, with UK offices and UK personnel, wholly dedicated to your best interests and able to assist you throughout.
6) We offer you the benefit of direct access to our friends at Bank Inter for the arrangement of any Spanish mortgage needs you may have.
7) We offer you access to our International Currency Services for advantageous exchange rates which can save you considerable sums compared to the High Street Banks when the time comes to pay money into Spain for your purchase.
As you can see from these few points the advantages for you are numerous, these are just a few which come immediately to mind, and the disadvantages for you are nil - it is truly a win-win situation when you choose to use the services of Spanish Property Brokers!
Q: If I find my property and want to proceed, what would my Stage Payments be?
A: For new build property it is typically €3000 deposit upon signing contract, 25% at 30 days, 25% at 90 days and balance at completion. For re-sales it is typically €3000 deposit upon signing contracts, 10% at 30 days and balance at completion.
Q: What are my expenses likely to be for my purchase?
A: In broad-brush terms typically around 15% of the purchase price in total e.g.
Purchase price €150,000
Tax @ 10% €15,000
Stamp Duty @ €2,250
Notary Fee €1400
Land Registry €600
Utilities €500
Solicitors Fees €1,815
Grand Total: €171,565
Please note: This is an example for guidance only and should not be relied upon for every transaction nor for every solicitor. Please ensure you obtain your own direct quotes for all costs related to your particular circumstances as we can offer no legal advice nor accept any responsibility for individual purchases. Your chosen Agent in Spain will be pleased to assist you with these matters as they relate to your particular purchase.
Q: I see the estimate for solicitors - do I need one in Spain?
A: Spanish law is very different to UK law so yes, you will need a Spanish solicitor and preferably one with good English and wide experience of helping UK citizens to buy in Spain. The choice is yours but all the Agents we deal with in Spain offer excellent "in-house" referral services which you may feel is your best choice. This is the way to avoid stress and to resolve any matters which may arise under Spanish law which is after all the law under which you will be purchasing. It is not wise to "skimp" on this aspect.
Q: When do I pay the expenses?
A: Tax, Land Registry and Notary are payable upon completion. Solicitors typically 50% at instruction and 50% upon completion but you should check and confirm your own arrangements.
Q: Can you help with a Spanish mortgage?
A: We have many years experience of arranging mortgages in Spain with the very best lenders and we will be pleased to refer you to the pick of these, Bank Inter, for expert, plain English advice and assistance. If you intend purchasing with the help of a mortgage it is essential to discuss what is on offer and the terms and costs involved before committing to a purchase – with Bank Inter this is a free service provided by fluent English-speaking staff well used to looking after our British clients
Q; Will I need a Spanish bank account?
A: Yes. This is easy to set up and all you will need is your passport. There is no need to deposit money to open a Spanish bank account. Again, Bank Inter will be pleased to help you with this.
Q: How do I transfer money into my new account when needed?
A: You could do a direct transfer between your UK bank and Spain but be wary - rates are not always competitive and transfers can be slow. There are a number of commercial alternatives which will enable you to safely obtain a much better exchange rate and a faster service in most circumstances - we can assist you with this if you wish. On any purchase the difference a better rate makes can be considerable.
Q: What about a property survey?
A: With new build property you will have the benefit of a 10 year guarantee from the builder plus an Architects certificate included within the purchase price. You can of course have additional surveys undertaken if you wish at your own expense (as you would in the UK). With re-sales there will have been no survey therefore you may want to instruct this separately (as you would in the UK) for your own protection and peace of mind. Your chosen Agent in Spain will offer assistance with this.
Q: What about the time to completion if it is a new build?
A: If completion is delayed by more than 4 months then you may be entitled to compensation.
Q: What about guarantees from the builder or developer?
A: Bank guarantees or insurance policies should be in place for all monies paid by you for a property under construction. Spanish law requires builders to do this. Following completion of a new build property your 10 year guarantee against building defects comes in effect. All such matters should be checked by your solicitors on your behalf.
Q: So what happens to my money paid if the builder goes bust?
A: This is where your bank guarantee or insurance policy provides you with essential protection. Put simply, if you have the proper arrangements in place your money will be refunded. If you do not have the proper arrangements in place then you will have an obvious problem. Check these arrangements with your solicitor at outset.
Q: What is an N. I. E. number and do I need to be in Spain to obtain it?
A: This is like your National Insurance number in the UK. Your solicitor will normally look after this for you under a Power of Attorney which will be set up at outset to minimise your inconvenience and simplify your transaction.
Q: Do I need to be in Spain for completion to take place?
A: Not if you have set up a Power of Attorney.
Q: When do I get my keys?
A: On the day you sign the Title Deeds at the Notary's office and complete your purchase either in person or via your solicitor under Power of Attorney on your behalf.
Q: When can I take possession?
A: As soon as you complete and have your keys.
Q: Who or what is the Notary?
A: The Notary is a public official who oversees the signing of the Title Deeds and records it on public records that it was understood by both seller and buyer and that it was signed in their presence or that of their representative eg your solicitor acting for you under Power of Attorney.
Every party involved in the purchase must attend e.g. the Seller, Buyer (or your solicitor acting under Power of Attorney), Bank Manager if a mortgage is being used, Solicitor and Notary.
Q: What about tax implications - how should I own my property?
A: There are various options depending on individual circumstances and we recommend you discuss this with your solicitor who will be able to properly advise you. Ask also about Inheritance and Capital Gains taxes as these may affect you in future.
Q; I intend to live in Spain - do I need residence?
A: If you intend to permanently live in Spain, or to spend more than 6 months there each year, then you will be expected to apply for residencia. Discuss this with your solicitor who will advise you.
Other questions may arise and we will be pleased to help wherever we can. Please understand that we cannot and will not offer you direct legal or other professional advice as we are not qualified to do so. All answers given above are general in nature, based on our understandings at the time and are intended for general guidance only - you must always ensure that you obtain and exclusively rely upon the appropriate advice from qualified professionals relevant to your own particular circumstances.