Buying Property in the Costa de la Luz
Choosing the area
Whether you are looking for a hilltop village, a rural country setting, or perhaps a modern urbanisation, the Costa de La Luz has all this and much more to offer! Not forgetting the beachside resorts which overlook some of the best stretches of white sand in Europe. On our Home Page you can click on any of the towns which will give you a full description of the selected area, which will help you choose your perfect location! Bear in mind that The Costa de La Luz is way behind other areas in infrastructure and development, however, therein lies its charm...
Using an agent
An agent can provide a buyer not only with a wide selection of properties, but also with expert knowledge of the prices, investment opportunities and specific procedures and characteristics of the local market.
Choosing the property
The first step, really, is to set your own parameters with regard to property type, price and area. Once you've established this it will be easier to discuss details such as personal tastes, needs and lifestyle with a reputable agent.
It's pointless to waste time looking at properties which you can't afford - so if you need a mortgage, investigate before you start looking. Most Spanish banks will lend up to 80% at current rates of interest around 4% for up to 15 years. Contact us for more details.
Making an offer
Once you have decided on a property, the next step is to make a verbal offer through your agent (resales only - new property prices are not negotiable). Negotiations will then proceed until a purchase price is agreed and what fixtures and fittings (if any) are included in the sale. Agreement should also be reached regarding who pays the Notary fees and Plus Valia on the signing of the title deeds at the Notary.
A small non refundable holding deposit will be required to take the property off the market. At this point it is important to appoint a Spanish based lawyer to formalise the agreement.
Appointing a lawyer
The lawyer must be fluent in your own language and will carry out the necessary searches on the property and complete the legal requirements of the sale. He will obtain a 'Nota Simple' from the land registry which proves that the property is properly registered, shows the legal owners and any outstanding mortgages or other debts against the property. He will also advise you on whether to buy the property in one or joint names or via a Spanish or Offshore company depending on your individual circumstances and inheritance tax liabilities.
The seller will have to provide your lawyer with proof of payment of all utilities and IBI, the annual real estate tax.
The contract sets out all the agreed terms, both standard and any specially negotiated ones and stipulates a date for completion. The buyer will have to pay at least 10% of the purchase price.
On the assigned day, buyer and seller (or their authorised representatives) sign the title deed at the Notary's office. It should state that the property is sold free of charges, mortgages and tenants. The balance of payment is made and possession passes to the buyer.
Your lawyer will arrange payment of fees and taxes and register your property title deed at the Land Registry.
- Lawyer's fees: Usually about 1% of the purchase price + 16% VAT
- Notary Fees: Fixed by law and in the region of 300 to 500 euros
- Registry Fees: Slightly less than half of the Notary Fees
- Transfer Taxes: 7% of the purchase price + .5% stamp duty on new properties.
- Plus Valia: 200-500 euros depending on the Town Halls 'assessed' increase in property value since the last change of ownership.
The seller should pay the Notary fees and the Plus Valia but this should be negotiated and agreed before signing a Private Contract.
After Sales Service
We like to think that once a client has bought a property through one of our (Direct) offices, our relationship with them really begins. We offer a wide range of services aimed at helping you turn your new property in to your new home. By an agreed date, your new home will be decorated and furnished with all services connected and a chilled bottle of champagne awaiting your arrival.
Our portfolio of services includes
- Furniture Arrangements
- Painting and Decorations
- Water and electricity connections
- Air Conditioning
- Satellite T.V.
- Landscape Gardening
- Property Insurance
- Furniture Removals