The legal process involved in purchasing a property in the Autonomous Region of Valencia, Spain.

Getting your NIE number:

This is a tax identification number, known in Spanish as the Ndmero de identidad de extranjero.
The NIE number is essential for buying property, opening a bank account (required when purchasing a property in Spain), mortgages and getting utilities connected.

Reservation agreement / deposit

You will have to pay a deposit, which is normally  500 Euros, on submitting the offer. This amount forms part of the overall payment and is refundable if the offer is not accepted.

Deposit contract

After the offer is accepted, it is common to enter into an “Arras de Compra” which is a deposit on the purchase. This is usually 10% of the purchase price.

This sets out the exact details of the property: the type of property and what the sale includes, its location and who owns it. It sets out the price, payment method and when the purchase will be completed.

In terms of this contract: If the buyer pulls out, he will lose his deposit, but if the seller pulls out, he has to pay double that amount to the buyer.
The deposit should be kept in a separate account controlled by the lawyers and not passed to the seller until the final agreement.

Estate agent fees

The estate agents commission is usually in the region of 2% – 6% and  is  often split 50/50 between buyer and seller. Commission amounts are payable on the day of signing with the notary and are normally included in the price for the purchaser.

Contract of sale

The contract of sale (escritura de compravento) is usually signed in front of a notary with all parties present. If you would prefer, you are also able to have a power of attorney drawn up authorizing someone to sign on your behalf.

The signing of this contract completes the deal and is the formal handover of the property. At this stage the full sale price, taxes, commissions and other costs become due. In return, the owner received the keys and nota simple, which is a basic form of the tittle deed.

Transfer tax:

Next, an amount of 10% of the purchase price has to be paid to the “Hacienda” (Tax office) for Transfer fees within 14 days.

Transfer usually takes 4 – 6 weeks.