- How to proceed during purchase
How to proceed with a purchase
Reserving a property
Once you have found the right property and agreed the terms and method of payment with the vendor, it is standard procedure in Spain to pay a deposit (usually a £2,000cheque) to secure the property.
In the case of a resale or a completed property this is called an Option Contract or Reservation Contract. This document acts as a signed receipt for the deposit and is normally valid for 30 days. This allows the purchaser’s legal representative sufficient time to carry out the necessary searches. After this period, the Escritura (Title Deed) is signed in Spain by both parties before a Notary. If it is not possible for the purchasers to attend the meeting, they can grant their lawyer a Power of Attorney which enables him to sign on their behalf.
In the case of building a new property, the Option Contract reserves the plot of your choice allowing the lawyer sufficient time to carry out the necessary searches on the plot, after which the Main Contract is signed. The Main Contract will set out the payment structure at the different stages of construction. This document protects the purchaser’s legal status to the property. It clearly states both the purchaser’s and the vendor’s (the developer) contractual obligations and responsibilities.