Buying property cash

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01 May 2015 09:09 by cocobean Star rating. 3 posts Send private message

Is there any rules different when buying an apartment in Spain, cash purchase.?  I've read up on this stuff for a long time, but, the plans have changed and we're going to buy outright.  A small flat, 2 bedrooms, no more than 65k.  Prefer closer to the beach, as we both suffer health problems. For us the family to use for holidays only.  No intentions of selling it, no intentions in renting it, and will go to daughter when we vacate the planet.

We've been going to Benidorm for 10+ years, decided to buy.  Saw few apartments on ideal/fotoca....We're going the end of May and back again in June. 

Aware of yearly costs/tax reduced purchase price. Got a few checklists etc, but what about finding a good Abogado/lawyer?  Is there a reccomended list ?   One estate agent via fotocas replied to an email saying we only need our passports to buy property in cash.  

QUOTE - If you doesn´t need mortagage, only it´s necesary your passport.
When you buy in Spain,with the contract of the property, you go to the police to get the NIE,identity for foreigners and open an account in a Spanish bank. - " end quote.

Been up all night insomnic, apologies for lack of info. 

 


This message was last edited by cocobean on 01/05/2015.



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01 May 2015 11:32 by starfox Star rating. 58 posts Send private message

I think it sounds a bit like lost in translation.

You will need an NIE to complete the purchase before the notary as it also acts as your tax number and it will have to be registered for you to be able to pay the taxes for the property. You won't need one to make an offer or start the process but you will need one before you sign at the notary.





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01 May 2015 16:58 by windtalker Star rating. 1670 posts Send private message

You will need a NIE number and a bank account to buy any property you will need to transfer the money from you're UK bank in to a Spanish bank account in you're name you're Spanish bank will then transfer the money to the sellers lawyers account   you all have to do it this way it is against the law any where in the EU to take anymore than 6 thousands in cash out of a EU country trust me on this !!!!!! You also need a bank account to set up standing orders to pay the electric/ibi/water and so on .

 

 


This message was last edited by windtalker on 01/05/2015.



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01 May 2015 17:57 by galway60girl Star rating. 9 posts Send private message

Have sent you pm on our experience





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01 May 2015 17:57 by galway60girl Star rating. 9 posts Send private message

Have sent you pm on our experience





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01 May 2015 18:00 by Team GB Star rating. 1245 posts Send private message

Team GB´s avatar

 you're Spanish bank will then transfer the money to the sellers lawyers account

Cocobean, please totaly disregard the above comment

Windtaker, sorry that is absolute tosh and totaly incorrect.

A Spanish property transaction ends at the Notary, the contracts/deeds are signed and Notarised. The seller gets the money and the buyer gets the keys. You pay by bank cheque at the Notary!. You can not pay by transfers at the Notary!, to do this you would either have to pay before or after the notary signing. Paying before signing means the buyer is at risk if the seller won't then sign, paying after means the seller is at risk if the buyer don't pay.

 



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01 May 2015 18:44 by windtalker Star rating. 1670 posts Send private message

The lawyer you engaged to check the the legality of the property will instruct the notary to complete the sale only if everything is in place and legal l have heard of some people going direct to a notary and not engaging a lawyer to save a few euros only to find out later that the property they bought was not legal and has Dept's on it team GB stop nit picking and answer the ops question do you need a bank account to buy a property in Spain.

 


This message was last edited by windtalker on 01/05/2015.


This message was last edited by windtalker on 01/05/2015.



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01 May 2015 18:55 by Team GB Star rating. 1245 posts Send private message

Team GB´s avatar

The lawyer you engaged to check the the legality of the property will instruct the notary to complete the sale only if everything is in place and legal

 

That's right, but either the buyer or his/her POA will have to attend the notary and sign, and this is when the money changes hands. Nothing to do with the sellers lawyer



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01 May 2015 19:02 by windtalker Star rating. 1670 posts Send private message

Team GB you still have not answered the ops question do you need a bank account to buy a property in Spain





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01 May 2015 21:26 by Team GB Star rating. 1245 posts Send private message

Team GB´s avatar

Unequivocally yes, of course you need a bank account to buy a property in Spain.

Windtaker you edited a earlier post to say.

team GB stop nit picking and answer the ops question do you need a bank account to buy a property in Spain.

Nit Picking!! Ye gods!! you said

you're Spanish bank will then transfer the money to the sellers lawyers account

Totaly wrong. hardly nit picking! Please try and give posters the correct information, if you don't know don't post. Cocobean had already said that he/she hadn't slept through worring

 



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03 May 2015 05:53 by cocobean Star rating. 3 posts Send private message

Many thanks for all your replies.  Suffering insomnia again!  Hubby's convinced am going thru the change of life.  Sighs.....

I've had a skim read and do will so again tomorrow when firing on all cyclinders.  Will take notes tomorrow tothanks.   Is ther/do you personally have a favourite brand/bank ?  Ones to avoid due to troubles etc.  What UK ID would I require with me to open the bank account?  What about Euros banker draft?  should the bank/property be in both husbands/wifes name, or just the one of us.  Does it matter?

There's so much inforamtion online, and it's taken a while to read all sorts of stuff, and this post is why it can be such a mind F*c*.   One says yes, another says no.  haha. :-).  Chasing thoughts on stuff i've read, I remember saying to myself, hhhmmm mind ask about that. 

There's a few properties....where, you can tell from the images, it looks like Spanish residents.  What concerned me about considering any of those proerties, after reading topics similar to......what if, it's been a lovely ole lady , lived there all her life, and has been evicted.  The community as a whole....do they take their anger out on the purchaser ?  The topic I read, the user, he'd been quoted 5k for community fees.  What about the risk of squatters?  Certificate of habitation, does that apply for holiday homes.   Is that old news/stuff i've read.

Cyber hugs/kisses

 

 

 


This message was last edited by cocobean on 03/05/2015.



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03 May 2015 09:10 by GuyT Star rating. 487 posts Send private message

"The community as a whole....do they take their anger out on the purchaser ? "

When I lived in Johannesburg in the 90s I had a friend who worked for a mortgage company. It was a time of political change and banks were being encouraged to give mortgages to borrowers who would now be known as sub-prime, many of whom were unfamiliar with the concept of having to pay back the money.

Subsequently, there were many evictions in black townships. But the banks noticed that a large pumpkkin would be put on the roof of the repossessed house. This was a notice that anyone who bought the house would be killed. Which frustrated my friend as they knew they could never sell any of these properties.

I suppose the moral of the  story is watch out for pumpkins before you buy.





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03 May 2015 12:44 by acer Star rating. 1365 posts Send private message

Hi Cocobean,

It's too easy to let these possible issues distract you - you need to focus on the longer term and what you wish to achieve.

Others will no doubt disagree, but I don't believe you can rush or cut corners with your purchase.  I would always employ a solicitor, but make sure you obtain several recommendations.  People too often opt for one based on one recommendation who speaks some English!  But standards vary massively - so take some time and perhaps talk to Maria who often posts on this website?

I've found that Spanish solicitors don't confirm things in writing.  I've used four and never received one letter and the emails were very brief - so confirm everything important back to them to make sure there are no misunderstandings.

It makes sense to register the property in joint names and afterwards have a Spanish will drawn up by your solicitor.  You say it will be used for holidays which is fine but be aware that in theory if you are in Spain for more that 183 days in a year you will automatically fall under the Spanish tax system (this is a subject in itself).

As Team GB says it is usually agreed that the transfer of cash tales place at the notaries office.  The two solicitors will agree the detail and let you know. 

You need to research the transfer of funds to ensure you don't waste money in the process.  A transfer by a UK High Street bank will almost certainly cost you considerably more than it should by giving you a poor exchange rate.  There are lots of better choices - in the past I've used several but HIFX are both large and helpful.  There are plenty of others and it does no harm to shop around - you'll be amazed at the difference that a couple of decimal points in the exchange rate will have to the cost of the transaction. 

You most certainly need a bank account.  Several of the better British banks have now left Spain and of course you need one that is handy to your property purchase.  We find La Caixa better than most Spanish banks.  I would avoid Santander like the plague, but again a local recommendation might be useful.  Ask them to confirm the cost of providing a cheque for the Notary - it should be very modest.  Your solicitor will confirm the payee and other details.

When you are buying investigate the wider financial situation.  You need to be sure that there are no bad debts that attach to the property (your solicitor should do this - but check they have done so).  Also ask to see the accounts for the community in which you are buying - it's like buying a flat in the UK, you need to know that the building is well funded, all are paying their service charges and is in order.  Having a conversation with the President of the community can be worthwhile to learn about any problems.

Make a list of contents that are included in the purchase and take lots of photos.  Often these are included as almost a freebie, which improves the deal further, but you need clarity - then check out the contents are still at the property and in good condition before you visit the Notary. 

There's a bit to do, but look on the bright side.  The market is fabulous for buyers and if you take your time and check out everything you should do very well indeed.

 


This message was last edited by acer on 03/05/2015.



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03 May 2015 14:38 by ads Star rating. 4016 posts Send private message

Reinforcing the need to ensure all legal licences are in place prior to purchase..... Maria has quoted the following:

First Occupation License is necessary for the registration of Finished New Work Notary Deed and registration and therefore for  posterior first transmissions  ( from developers to buyers).

Whatever regional regulations establishes, as Notaries and Registrars and Constitutional Court in Spain have already set: competency for the determining of the necessary requisites for public documentation ( Notary deeds) and registration ( at the Land Registry) of authorisations and licenses established by regional regulations, is always National.

And National Ground Act clearly establishes the obligatory vertification of existence of First Occupation Licenses before granting of  Finshed New Work deeds and its registration

So, no Notary should authorise Finished New Work Deeds and no Land Registrar should register it before veryfing on the existence on these.

An example of why a good independent lawyer--- better if  locally independent too-- , with good knowledge of Real Estate, Land Registry, Urban and Horizontal Property Law is essential for a safe property purchase in Spain.





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04 May 2015 18:43 by acer Star rating. 1365 posts Send private message

Cocobean,

The last message is highly valid.  In a nutshell - make sure that the property you buy has a Habitation Certificate (otherwise known as First Occupation Licence).   Most properties do, particularly the type you indicated that you were thinking of buying, so it should not be an issue for you, but ask the question.





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