A resale property refers to a property that has been sold at least once before. When you buy a resale property, you are purchasing it from the current owner, not directly from a developer or builder. These properties can vary widely in age, condition, and style. They can offer the charm and character of older homes, a prime location in established areas, and the ability to move in more quickly compared to waiting for a new build to be completed. However, they may also come with the need for repairs or renovations depending on their condition.

The process of purchasing a resale property in Spain differs slightly from buying a new build. Here is a step-by-step guide to help you understand the purchasing process.

1. Make an Offer

Once you have found a property you like, offers and negotiations start. Unless the asking price is particularly attractive or you are competing with many other buyers, it typically makes sense to start negotiations below the asking price. Basic negotiations on price are often done verbally; however, it is best to put your offer down in writing in an offer letter through your agent, including price, payment terms and deadlines.

2. Reservation Contract

Once you reach an agreement on price, you will sign a reservation contract, which your lawyer should review, before you then pay the reservation deposit. This is to remove the property from the market and allow time to do the required checks without the risk of someone else buying it. This deposit is usually around 6,000€ to 15,000€ (depending on the type of property) and it is held by the seller’s lawyer or estate agency. It goes towards the purchase price and is not refundable unless specific circumstances arise.

3. Conduct Due Diligence and Property Checks

At this stage, your lawyer will conduct legal checks on the seller and property (confirming the ownership of the property and the legal right to sell, checking for unpaid bills or taxes, and ensuring there are no legal disputes); the Land Registry check (to verify the property status in the Land Registry and to ensure it is free of debts); and further property inspections in case any additional details need verification.

4. Private Contract

Once the legal checks are complete (generally two to four weeks), you will sign a private contract and then pay a deposit of usually 10% of the purchase price (often non-refundable if you decide not to proceed with the purchase). The reservation deposit already paid is normally included in the 10%. This contract, called the Penitential Deposit Contract (Contrato de Arras Penintenciales) outlines the agreed purchase price, the payment schedule, the completion date, and any other specific terms (e.g. included furniture or repairs to be made by the seller).

5. Title Deed

At this stage, you will sign the Title Deed in front of a notary at the Notary’s office with all parties and their lawyers present. You will also pay the final balance and receive the keys to your new property. You will receive a copy of this document, known as the Copia Simple.

6. Land Registry

Once the title deed is signed your details will be registered at the Land Registry. The utility companies must be informed of the change of name and payment methods must be set up.

7. Taxes and Fees Payment

After the sale is complete, it is important to plan for property taxes and fees to be paid, including Property Transfer Tax (ITP), Notary Fees, Land Registry Fees, Legal Fees, and Mortgage Costs (if applicable). In some cases, part of the legal fees is paid when the private contract is signed.  It is important to ask for a detailed receipt and be given original invoices for any payments done until now. Learn more about this on Cost of Buying a Property

Would you like to know more? Please contact me if you would like further guidance on this subject or want to know anything else about acquiring your ideal property in Marbella and living its lifestyle.