A Buyer's Guide to Costa Del Sol Property

In a nutshell, the Costa del Sol is a paradise. It shouldn't come as a surprise that the Costa del Sol has become a hotspot for real estate with thousands of kilometers of golden Mediterranean beaches, a slow and easy lifestyle, and more sunshine than most countries have seen in years.mijas costa property for sale

If you're considering purchasing a property on the Costa del Sol, you may have heard from others that the process is quite complicated. Even though there are a few hoops to jump through in order to make a successful purchase, buying a home on the Costa del Sol can be relatively painless if you take it slow and exercise extreme caution.

The Method: When searching for Costa del Sol real estate, the first thing you should do is to proceed with caution. The Spanish real estate system has a lot of little, unnoticed flaws that can get you into trouble, such as making you liable for mortgages or taxes that aren't yours or giving you a property you don't even own. Keep in mind that the Spanish legal system has a backlog of 35,000 cases that need to be heard by the Spanish Supreme Court years in advance. As a result, if you get into ownership disputes or other legal issues, you might find that the conflict lasts forever.

Now that we have that out of the way, let's talk about what you can do to stop all that ugly.

1. Find a real estate broker. This could be the easiest part of looking for Costa del Sol real estate if you're not careful. It would appear that there are more real estate agents in Costa del Sol than there are regular residents; you can find a real estate office at every turn. Thus, finding one is simple. However, do your research and select a reputable business that prioritizes the needs of its customers. which is less common than you might expect.

Also, keep in mind that a company's quality does not always depend on how big it is in Spain. The largest estate agencies are also some of the worst in the country.

2. Locate a lawyer or attorney. Clients of some estate agents claim to receive no cost legal advice. Even though it may appear appealing, you absolutely require legal counsel. Really. Since domain specialists, regardless of whether they are knowledgeable in the law, are not legitimately liable for everything they say to you- - in the event that they commit an error, you'll wind up in a difficult situation with no one to fault.

In the Costa del Sol, finding a lawyer who speaks English is fairly simple. If you do a quick search on the internet, you'll find a lot of businesses with websites that provide a lot of information about their services. Look at Costa del Sol expat message boards and forums to find a good property lawyer. In most cases, people who have already gone through the process can be very helpful in recommending a good lawyer or solicitor.

Yes, hiring a lawyer is an additional expense that you may think you can avoid. However, the majority of Costa del Sol attorneys will inform you upfront of their fees, which typically amount to about 1% of the purchase price of the property minus VAT. Additionally, that additional 1% could mean the difference between a successful purchase and nothing. It is absolutely necessary to hire a property lawyer in Costa del Sol.

3. Analyze the Asset. It's time to conduct a thorough analysis of the property and its past once you've found one that you want to make an offer on. This is where that attorney you contracted truly proves to be useful.

Check the property register for any property you are interested in purchasing with your attorney. This register will immediately indicate whether the seller actually owns the property and whether there are any liens, mortgages, taxes, etc. are due to it. Before making an offer and just before making a purchase, this registry should be checked twice. Because it is legal in Spain for sellers to take out a mortgage on a property that is under negotiation for purchase, you will be responsible for paying any sneaky new mortgages after the purchase is complete.

Also, have your lawyer look into the property's planning and zoning status before you buy it. The local government could demolish the property and take your entire investment with it if the area where it was built or is being built was not properly zoned.

The Method: During the Buying Process 1. The Primer Agreement. Choosing a purchase price with the seller is the first step in purchasing a Costa del Sol property. A preliminary contract is typically then drafted in order to remove the property from the market and reserve it for your purchase. The agreed-upon purchase price is included in this contract, which is called a Contrato privado de compraventa. It also includes all of the property's details.

A deposit of 5 to 10 percent of the total purchase price is typically required at this time. A bonded account will keep these funds until the purchase is finished.

2. The Final Agreement. The purchase price, less the already-paid deposit, and all fees must be paid when the purchase is finished. After that, the Escritura de compraventa, or final contract, is signed. After that, you will be provided with a public deed for the property, which will need to be witnessed by a Notary Public. The property registry and the tax office will each receive a copy of this deed. Throughout this process, you should always keep your attorney close by.

3. Paying the fee. Both the buyer and the seller of a Costa del Sol property will be responsible for paying fees during the transaction. They roughly break down this way:

Fees for buyers:

o Transfer Tax (on properties previously owned); or o IVA and stamp duty (for newly built homes); o fees for a notary; o fees for a lawyer or solicitor; and o seller fees:

o Capital Gains Taxes o Plusvalia Tax (generally, though some buyers agree to pay this) o Selling Agent Fees It is very important to keep fees in mind when deciding whether or not a property fits your budget. Because the fees might just push the price of the property you want to buy over the edge of being too expensive, breaking your budget. Expect to pay additional fees of 10 to 11 percent of the purchase price for any Costa del Sol property.