Steps to purchase a property
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SIGNATURE OF THE OPTION TO PURCHASE CONTRACT
DUE DILIGENCE
Reception of the conditions and documents of the purchase and beginning of Due Diligence process. Study and preparation of the initial report prior to Option Contract and record of compliance with laundering of capitals regulations. Request, from the Land Registry, current Data Form to find out if the Property is free of any charge and to confirm the seller is the actual property owner. Request, to the Town Hall, if there is any Town-Planning infraction and follow necessary steps in the tax land registry office.
Preparation of the Option to Purchase Contract and its signature between the parties (buyer, seller and the Real Estate Agency). Payment of reservation deposit based on a % of the purchase price. Preparation of Purchase Public Deed with the Notary to be signed on the completion day. Arrange between the parties the completion place and date to sign the Purchase Deed.
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CLOSURE DUE DILIGENCE PROCESS
PREPARING FOR COMPLETION
POST SALE MANAGEMENT
Finalise Town-Planning, Legal and Tax Due Diligence process. Delivery of the documents to the Notary: passports/NIE’s local council taxes (IBI), certificates, reports, etc. Valuation of the property and arragements with Spanish bank in case of Mortgage..
Preparation and writing of Purchase Public Deed draft.
Annual Tax: Wealth Tax and 210 form, local council tax (IBI) and Municipal Solid Waste tax (RSU). Change of name on supply bills: water, electricity, gas... Bank orders arrangements for annual taxes and supply bills. Change of ownership in the Tax Land Registry Office.
Completion day .
Signature of the purchase deed and payment of the purchase price at the Notary. Preparation of the bank check for payment. Payment of taxes: Buyer: Transfer Tax (ITP) (8%-11%) or VAT (10%-21%) Seller: Municipal Plusvalue tax. End of the procedure for the purchase and registration of the new deed in the Municipal Registry.
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