PROPERTY PRICES

As with anywhere in the world most prices on property are negotiable. This can be discussed in detail with Ultimate Property in regard to property prices in Javea, Moraira and Benitachell.

 

PRICE NEGOTIATION & PUTTING FORWARD AN OFFER

When you have found a property you would like to purchase the next step is discussing with Ultimate Property an offer you would like to put forward. This offer will then be liaised between the estate agent selling the property and the seller. Ultimate Property have their clients best interests in mind and will negotiate hard to achieve the best price for their clients.

 

RESERVING THE PROPERTY

Once a purchase price has been agreed a reservation fee has to be paid. The fee is usually €3,000 which is paid to the estate agent. This deposit is non-refundable if you decide not to proceed with the purchase. The property is taken off the market and is unavailable to other potential buyers whilst a purchase contract is being drawn up. The property is reserved  for 3 weeks, before signing the purchase contract. If there is anything suspect about the property that we did not discover in our original searches and it is felt you should not proceed with the purchase on the account of the property being unfit for sale, then we will refund the reservation deposit to you in full.

 

APPOINT A LAWYER

Before signing anything or paying any full deposits, you should appoint an Abogado (Spanish lawyer). The Abogado will safeguard your financial interests, generally for a fee of 1% of the purchase price (plus VAT currently charged for legal services at 16%). This is not prohibitive because in return you will have peace of mind, an invaluable commodity.
We are able to recommend you lawyer practices, of which they are multi lingual and specialize in house purchases. Also to avoid a conflict of interest, we recommend you do not use the same lawyer as the vendor.

The legal systems and land registration procedures in Spain are unique. It is advised that you do not try to do this yourself, and by using professionals you will avoid the majority of problems and have peace of mind.

 

PURCHASE CONTRACT

The purchase contract will be drawn up by your lawyer, but you and the lawyer must ensure that all negotiated items are included, include every detail in the offer do not assume anything or agree anything verbally that is not included in the purchase contract.

The purchase contract should include the following negotiated items:
• The purchase price
• The declared price (which can be different from the purchase price)
• The method of payment and currency
• The fixtures and fittings
• The furniture itemized in an inventory which we are happy to assist in drawing up
• All of the taxes due and which party is liable for which tax

The purchase contract should also state that:
• The property is sold free of all debts (including mortgages), collateral and embargoes.
• All bills are paid up to date.
• Listed items of household equipment are in working order.
• It is usual at this time to make the deposit up to 10% of the purchase price, to display to the vendor your serious intentions.

Your lawyer will also check:
• The plan parcial (which shows all the plots) to find out if the property is on an urbanization and that the urbanization is legal and registered with the Town Hall.
• For plans of any new roads and developments in the area.
• That the seller has the final Escritura Publica (Title Deeds), if not, you should rethink about going any further into agreement.
• That the IBI (a small local tax payable on owned property) receipts are all up to date.
• A certificate of Valuation (Referencia Catastral) the number should be on IBI receipts.
• Make sure all community fees are paid up to date.
• Ensure electricity, water and telephone bills are paid.
• Rubbish collection fees are paid, these are usually charged as part of the IBI fees but in some instances they are charged separately. Bills can have built up and are subject to additional fines and surcharges.

 

When your lawyer has written and endorsed this private contract, you must be prepared to deposit 10% of the purchase price. Your lawyer will forward this deposit to the vendor's lawyer. Only when this is done, both parties have completed and signed the contract and the 10% deposit paid does the private contract become legally binding, your deposit at this stage is non-refundable, and the vendor is bound to sell you the property at the agreed price. The rights of both parties involved are secured, it is a very impartial system, and works extremely well. The contract will specify the completion period and the penalty for not completing in time (usually loss of your deposit).

 

BUYING COSTS

To cover all necessary costs in buying a property in Spain you need to allow an extra 11% on top of the purchase price. These costs are listed below as a guide.

NIE NUMBER

This is an identity number for Foreigners (Número de Identificación de Extranjeros). You need an NIE number for the following : to buy or sell a property, to open a bank account and apply for a mortgage, to set up utility connections, to insure a property, to buy/insure/register a car or boat, to work or start a business.