Buying a house is often one of the most significant moments in many people's lives. In Spain, the process of acquiring property can be complex, given the diversity of regulations and procedures to follow. Therefore, we detail the key steps to buying a house in our country below, considering the different phases of the process to ensure that the property purchase is as straightforward as possible.
1. Evaluation and Obtaining Financing
The first step to buying a house in Spain involves assessing each individual or family's financial situation. This includes thoroughly reviewing savings, income, and the possibility of obtaining a mortgage. It is advisable to obtain pre-approval for the mortgage to know the exact amount the bank is willing to finance. It is also important to consider other costs associated with buying a home, such as notary fees.
2. House Hunting
With a clear idea of the budget and purchasing power, the next step is to begin the property search. Using real estate portals like Aliseda Real estate, contacting local real estate agents, and exploring areas of interest and property characteristics are common practices. It is essential to consider factors such as location, size, available services, and the potential for property appreciation, as well as whether it fits within the budget.
3. Legal Verification of the Property
Before proceeding with the house purchase, it is crucial to verify the property's legal status. This includes ensuring that the seller has the right to sell, that the property is free of charges and encumbrances, and that it complies with local urban planning regulations. For this step, the assistance of a lawyer specialized in real estate law is recommended.
4. Signing the Earnest Money Contract
Once a property has been decided upon, the next step is to sign the earnest money contract. This preliminary contract establishes a purchase commitment between the buyer and the seller, where the buyer deposits a sum of money as a sign of commitment. This deposit is usually 10% of the sale price and serves as a guarantee that both parties will fulfill the agreement.
5. Obtaining the Mortgage
With the earnest money contract signed, the next step for the buyer is to finalize obtaining the mortgage. This involves submitting all the documentation required by the bank, including the property appraisal. Final approval of the mortgage is an essential step before proceeding to sign the deed of sale, unless the necessary amount is available to purchase the property without resorting to a mortgage loan.
6. Signing the Deed of Sale
The signing of the deed of sale takes place before a notary. In this act, the final payment is made to the seller, and the property transfer is formalized. It is important for both the buyer and the seller to carefully review all the details of the property deed before signing.
7. Property Registration
After signing, the next step is to register the property in the corresponding Property Registry. This procedure is essential to guarantee the legal security of the acquisition, as it officially establishes the buyer as the new owner of the house.
8. Payment of Taxes
Buying a home involves paying several taxes. Depending on whether the property is new or second-hand, you will have to pay VAT (Value Added Tax) or ITP (Property Transfer Tax), respectively. Additionally, there are other associated expenses such as the Tax on Documented Legal Acts and notarial fees, mentioned earlier.
Buying a house in Spain is a process that requires careful planning and attention to legal and financial details. By following these steps, buyers can ensure a successful transaction and start a new chapter in their lives with confidence. In this sense, it is essential to have the assistance of professionals in the real estate and legal sectors to ensure that the house purchase is carried out correctly.
This article has been designed to guide you through the "steps to buying a house" in Spain, providing a solid foundation for making informed decisions on your way to property ownership.
