What if you have found your ideal Spanish property? Then what are the steps to take? In this article, you will find more information about bidding on a property in Spain.
Step 1: Bidding on a property in Spain
In Spain, according to local custom, you can transfer your price to the seller or estate agent in any way. So you can transfer your offer both in writing (e-mail, whatsapp, text message, etc.). Unlike in Belgium, for example, you are in principle not bound by this price. The seller can still make a counter-offer, to which you can respond. As long as this offer is not formalised in a contract, you are not bound.
Note: it may be that the broker asks to make an offer via an offer form and already asks to make a payment. Usually this document is a reservation. In that case, check the reservation conditions in advance, such as the possibility of recovering the payment later.
Here are 5 tips on negotiating the purchase of a property in Spain.
Step 2: You agree on the price
Once the price is agreed, the seller or estate agent will draw up a contract. This contract can be a reservation contract or a private sale agreement.
A reservation contract is similar to an option. In exchange for a down payment, the seller cannot sell the property to third parties for an agreed period. Within the option period, you can (have) all legal checks carried out. Should there then be any debts or building violations to the property, you can include the necessary guarantees for this in the private purchase agreement.
The private purchase agreement or compromise is a binding agreement whereby you proceed to purchase. You accept the purchase based on the terms and conditions stated in this agreement. There is also a deposit of typically 10% of the purchase price, which is non-refundable should you abandon the purchase without a valid reason. Therefore, it is important to work with a reservation contract first to allow time for the property inspections.
Feel free to send us the documents you receive from the seller or estate agent. We will then review these documents for you.
Why you better not sign the compromise immediately.
Step 3: Start of controls
After signing the reservation, we can start the property checks. These checks include:
- ownership situation (can the seller sell validly?)
- debt statement
- urban situation
Based on the results, the private sale agreement is then drawn up.
