Buying property in Spain, especially on Costa Blanca, is a well-structured process, but it is essential to understand each stage and pay attention to key legal and financial aspects. This guide explains how the purchase of resale property works, what to check carefully, and which documents are required to complete the transaction safely.
The process begins with selecting a property and signing a Reservation Contract (Contrato de Reserva). At this stage, the buyer pays a deposit, usually between €3,000 and €6,000, to remove the property from the market. This initiates the document verification process. It is crucial to review the Nota Simple, check for any outstanding debts such as taxes or community fees, confirm whether there is an existing mortgage on the property, and verify the identity of the owner. These checks are carried out between the payment of the deposit and the signing of the reservation contract. The deposit is paid into the agency’s account, acting as a guarantee for a secure transaction. This amount is included in the final purchase price. If the buyer withdraws from the transaction, the deposit is lost. If the seller withdraws, they must return double the deposit.
When purchasing resale property in Spain, particular attention should be given to potential debts or legal encumbrances, as unpaid taxes or community fees may transfer to the new owner if not settled before completion. It is also important to verify that the physical condition of the property matches the official records, as discrepancies such as unregistered extensions or modifications may affect future resale or mortgage approval. Inheritance-related properties should also be carefully checked to ensure that all legal procedures have been completed, as this can delay the transaction.
Obtaining an NIE (Número de Identificación de Extranjero) is a mandatory step for any property purchase in Spain. This identification number can be obtained in person at a police station or through a lawyer with power of attorney. The cost is approximately €145, and processing time ranges from a few days to several weeks. Without an NIE, it is not possible to complete a property purchase.
Opening a bank account in Spain is also required to manage payments and ongoing expenses such as taxes and utilities. In some cases, a European bank account may be used, but a Spanish account is recommended for smoother transactions. To open an account, buyers typically need a passport, NIE, and proof of income, such as bank statements or tax declarations. Payments for resale properties can be made either directly from the buyer’s account or through the agency’s account.
At the next stage, the Preliminary Contract (Contrato de Arras) is signed. This legally binds both parties and requires the buyer to pay approximately 10% of the property price. If the buyer withdraws, this amount is not refunded. If the seller withdraws, they must return double the amount. At this point, withdrawing from the transaction involves financial consequences.
For expert guidance and a secure property purchase process in Costa Blanca, contact Capital Union Investment today.
