Stage seven
New and “resale” properties
Buying a new rather than a resale property demands a different conveyance process. While a resale property requires the above background checks, purchasing a new property offers different pitfalls.
Legally, a Bank Guarantee must be supplied by a developer to the purchaser to cover the amounts advanced by the purchaser. Whilst this is a legal requirement, it will fall to purchaser’s lawyer to push the developers lawyer into receive written confirmation of the precise level of the guarantee. If a developer can avoid giving this they invariably will. This will leave a gap in your paperwork. The effect of this is to protect the purchaser’s investment should the developer go out of business before the property’s completion.
Obtaining a licence that stipulates you may occupy the property as a dwelling from a builder before handing over any final payment is also crucial. The lengthy procedure of producing documentation by a local Town Hall often means that money may be required before a new owner is in possession of these items. Finally the local town council will provide the purchasing client with a Valor Catastral which is a certificate quoting the value of your property and is required in the payment of your IBI – or local taxes - see below.
© The Rights Group SL 2006 (Marbella)
Mark FR Wilkins
www.therightsgroup.com (under review)
+34 600 343 917
Please note that the information provided in this article is of a general interest nature and intended as a basic outline only. You are well advised to contact a professional for advice specific to your circumstances. Nothing contained in this article should be seen or taken as the writer or publisher providing legal or financial advice.
Also in this section
- Introduction: Investing in Spain
- Stage one: Identifying the right property
- Stage two: What can you afford?
- Stage three: Getting the best out of your Euros
- Stage four: Protecting your interests
- Stage five: Checking your property
- Stage six: Compraventa – the conveyancing process
- Stage seven: New and “resale” properties
- Stage eight: Completion of purchase/sale
- Stage nine: Purchase costs and taxes
- Step ten: Main annual taxes