In the penultimate part of our guide to Buying & Selling Property on the Costa del Sol is all about the Contract. The final step in the process of buying or selling a property on the Costa del Sol is to sign the contract and exchange funds for title deeds, completing the transaction in a successful sale. If this is the first part of our guide you’re reading, it’s worth checking out last week’s article on Offers.
A reservation agreement is written up once the seller and the buyer have agreed on a final price. At this point, the buyer will pay a reservation fee to take the property off the market and to allow the next steps in the process to conclude on an exclusive basis. The reservation fee can be anywhere from €3.000 to €6.000. This reserves the property for approximately 4 weeks, during which the buyer liaises with their bank and legal representative to prepare paperwork in advance of the exchange of contracts.
A private contract is thereafter signed between both parties, this is known as the ‘Contrato de Arras’ or ‘Opción de Compra’. The buyer’s lawyer will typically prepare this contract, and at the same time as signing the buyer then pays 10% of the purchase price to the vendor. In some cases, the buyer can skip this step, going straight to full payment whereby the balance will be paid within an agreed timescale, typically six to eight weeks after exchange.
Unless either or both parties assign someone as Power of Attorney to represent them, then both the buyer and the seller are required to sign the property deeds at the Public Notary in Spain where the balance of funds is paid to the vendor. The buyer’s solicitor is responsible for changing the utilities (water, electricity etc.) into the name of the new buyer. Finally, the buyer can collect their keys and begin to enjoy their new home!
Stay tuned next week for the final instalment of our Buying & Selling guide, which focuses specifically on the Buyer’s Costs.
If you’re interested in buying a property on the Costa del Sol, get in touch with us now using the contact details below to find out how we can help you.
Phone: (+34) 952 527 300