5.2 The purchase process
The process of buying a new built property in Spain is
almost the same as a re-sale transaction. There is a
contract to buy and sell the property setting out the parties,
a description of the property,the purchase price,terms of
payments and estimated completion date. Completion will
take place at the Notary Public Office where the Title Deed
(Escritura)will be signed in order to transfer and convey
the new property to the buyer. Afterwards,taxes need to
be paid to the relevant tax authorities and the Title Deed
(Escritura)presented to the Land Registry for registration.
5.3 The deposit
As with a re-sale transaction,you will
normally be asked to pay an initial
reservation fee to secure the property.
Both the buyer and the developer will
sign a preliminary document,which
sets out such matters as the price,
a schedule of payment terms and a
brief description of the property.The
property will then be held for the buyer
until the purchase contract,detailing
full particulars of the transaction,is
signed,normally a few days later.
Remember,before committing yourself
to buying the property,see your solicitor first.Your solicitor should then
make provisions to protect you if you
decide not to proceed and he will be able to advise you on
a number of preliminary issues .A short meeting may be
sufficient to have a clear picture of the transaction and it will
save you a lot of worry and sometimes money.
5.4 The purchase process
Before signing the contract,the buyer or the buyer´s
solicitor should be carrying out various searches,
including,full detailed planning permission granted,and
the solvency of the builder and developer.
Most developers have their own standard purchase
contract drafted by their own legal team,setting out
full terms and conditions of the sale.Very often,these
standard contracts are written strongly in their favour.
The buyer or the buyer īs solicitor may therefore wish to
re-negotiate to protect their interest.
A purchase contract should be drawn up in good faith,
keeping a balance of each party īs rights and obligations.
The contract should then contain all the agreed terms
as well as ensuring that each party pays the correct
purchase costs according to the law.
If the developer is reluctant to negotiate the terms of the
contract,or is not willing to make any changes to unfair unfair clauses,
the law allows the buyer to withdraw from the
transaction requesting all the funds be refunded to the
buyer,leaving the developer without the right to claim
breach of contract.
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