4 Crucial Stages of Buying a Resale Property in Spain

The devastating effects of the COVID-19 pandemic didn’t leave the Spanish property market behind and largely dropped the home values by 5-10%. Since the owners are putting their residence on sale for additional income or any other reason, it could be a great opportunity for investors to buy a property at a minimal price for better ROI in the future.

But when you’re buying a resale property, you need to be aware of various processes apart from legal matters. As it involves a number of people with diverse interests and demands, the duration will depend on various overwhelming factors. Don’t panic, this comprehensive guide will walk you through the steps of buying a resale property to simplify your journey and accomplish your goal.

PHASE 1 – AGREEING ON A PRICE AND CARRY OUT ENQUIRIES

Once you have looked through the property’s infrastructure and agreed on a certain price, before making a payment, carry out some enquiries to make a profitable investment.

Know who owns the property, whether there are any debts or registered allegations against it, whether they will be removable after the completion of the transaction, whether it is built lawfully, and what liabilities it may hold. This procedure may take a day or two or more depending on the individuals involved.

PHASE 2 – PRIVATE AGREEMENT

Once you have received an accurate report on the title, take risks into consideration and proceed with the purchase. Now it is time to involve in a private agreement with the seller and make a deposit of the total purchase price of the property. Depending on the issues and challenges, this step may take a couple of days or weeks before signing a deal.

PHASE 3 – COMPLETION

Documentation will be prepared and signed before the notary. Either the buyer and the seller or representative will participate in a meeting, where the funds will be paid to the seller and the buyers will get access to the property.

PHASE 4 – POST-COMPLETION

Once the transaction is completed, pay the purchase tax and the property will be registered on your title/name. This step can take some weeks to complete, but if you properly administer each task, it won’t ruin your excitement about buying a new property.

Don’t be in a rush. It is important to go through enquiries made in respect of the property and receive documents to be certain that the property has no outstanding debts. Before going through all the documentation, you can approach a real estate agent to assess risks before making a purchase.

If you’re considering buying resale property in Spain or have any queries regarding the process, feel free to contact us.