1) Contract duration is generally 2-4 months but any time-frame may be mutually agreed between the parties and stipulated in the contract. Before the private contract expires we will arrange for both parties and/or their legal representatives to attend before the Notary for signing of the legal documents and title deeds. Prior to this, funds must be made readily available for withdrawal from your non-resident account; sufficient to cover the full purchase price plus additional closing costs of approximately 8% (10% where a mortgage is involved). Your solicitor will give you a more accurate figure and breakdown of costs.
At that meeting the balance of the full purchase price is paid to the Vendor by way of certified cheque, bank draft or bank transfer, we will guide you through this process.
Where the vendor is a Spanish company, Spanish citizen or resident, and the purchaser is a non-resident, a certificate of receipt of foreign exchange import/non-resident funds is required, and this is obtained from the paying bank following the completion of the transfer of funds.
2) The closing costs (excluding mortgage costs) are approximately as follows:
6½ % purchase tax
½ % land registry - registration costs
½ % notary charges
½ % incidentals such as N.I.E.s, interpreter each mentioned in the paragraphs below (SOLICITORS FEES ARE NOT INCLUDED HERE, some apply a percentage fee although more typically solicitors apply a flat rate which depending on the solicitor you can expect somewhere between €2,500 and €3,000).
3) In the case of a mortgage being raised, the bank will advise you of the total funds required for completion. Those funds would include loan arrangement fee, mortgage registration etc., thus bringing the costs closer to 10% of total purchase price, this is an approximate figure only as financial institutions apply different fees. Should you require a mortgage we can help you locate a suitable bank.