Buyers Guide | How to buy property on Costa del Sol
by Lion Trust Spain
Thinking about buying a property on the Costa del Sol?
How the buying process works from finding a property that you like to knowing all legal requirements you need when owning property in Spain can be a bit confusing. In this article we will take our 20 years of experience in the industry and simply explain the process for you in 5 easy steps.
Step 1: Having your finances ready!
Starting to look at properties and maybe even falling in love with your absolute dream home can be hugely frustrating if you don’t have your finances in place. Properties in fantastic locations and with beautiful views properties have a tendency to disappear from the market really quickly (2023).
This means if you don't have your finances all in place to confidently put down a reservation deposit and make an offer, you run the risk of missing out on the property of your dreams. Whether you're a cash buyer or need a loan from the bank make sure it's all in order before you start searching for properties.
Step 2: Try to really prioritise what is important for you.
Many clients come to us with a list of things they are looking for in a property and an approximate location on the coast. This can be everything from the layout, to the views or proximity to amenities. But saying all the criteria are equally important isn’t going to help you or us!
We understand of course that finding the right property is a process and that you learn along the way when viewing properties what is most important. For example, you might see a property with a stunning sea view, but only realise when you are there that it is just not practical as it is set in the hills and only one of you drives. However, in the current climate finding the right property takes time, effort and research on your part and that of your agent. The more you can do together before you visit, the greater the chance of identifying the right property in the right location when you are here. I know you are busy and think that it can wait until you visit the coast, but the time you spend talking to your agent before you visit will save you time in the long run and maximise your chances of finding the right property.
If you know the coast well, you might even know in which communities you would like to buy. If not, with our experience of the areas here on the coast we can guide you which communities might work for you. You can get a preview on some popular communities on our community page.
Are you considering buying a property but not sure where to start? Our popular community page is the perfect place to kick off your search! Discover the communities we know and love on the Costa del Sol, and find your dream home today. To explore our selection of handpicked popular communities, click HERE and let us guide you towards finding the perfect setting for your new home.
Step 3: Get your legals in place!
When investing in a property on the Costa del Sol, you should be aware that the laws and regulations may differ from those you are familiar with.This is why it's important to have a good lawyer! Your lawyer will help to advise with regard to all legalities of buying a property and will help with all necessary administrative paperwork and steps required. For example you need to have a NIE number when you buy property in Spain. The lawyer will organise this for you.
When it comes to choosing a lawyer, we have to assume from a legal standpoint they all know their stuff. But perhaps equally important when engaging with a lawyer is their communication. Just like “bedside manner” for doctors, it is critical that you have a lawyer that communicates well with both you and your agent. My experience shows that securing a property at the right price and with all the legalities in place is a real team effort between you, your agent and your lawyer.
At Lion Trust we will work with any lawyer you choose, but if you allow us, we’ll be pleased to introduce you to a reliable lawyer with whom we can all communicate effectively. This process can start before you visit the coast.
Step four: Finally, it’s actually time to start looking at properties!
Now when you have your list of requirements and know which areas and communities you like, it's finally time to start looking at properties! Your dedicated agent will help you pick out those few properties that fit your criteria and set up viewing for your convenience. Even if we are not the listing agent we can still view whichever property you like due to our collaboration with all other agents along the coast. We try to group a few viewings in one session so you get the most value out of your time. This means less time consuming for you.
After viewing a property, it’s important to take some notes so that at the end of the day you can talk through and give your feedback to your agent. This will help to identify more suitable properties moving forward if you didn’t already find your ideal property.
Step five: Time to pull the trigger! Let’s put down an offer.
You have finally found the right property for you, fantastic! But what happens now? Well it's time to make an offer. First you make a deposit of between 6.000 Euros - 10.000 Euros into your lawyer’s client account. Then you and your agent will discuss what they think is an appropriate offer on the property to give you the best chance to secure it. Sometimes you might be able to negotiate a discount, but this is different every time depending on the property, the vendor and the market.
When a price has been agreed and a reservation agreement has been signed by both parties, the deposit you have paid up front when you made the offer ensures that the property will be taken off the market. This money will usually be transferred to the client account of the seller's lawyer and will only be refunded if due diligence is not successful.
Once due diligence is positive you will sign the private purchase contract or your lawyer will do so on your behalf with a power of attorney. At this you will usually pay 10% of the property price as a downpayment. The private purchase contract with stipulate the completion date when the purchase will be finalised in front of a notary public. This is where you pay the balance of the fund and receive the keys to your property.
Congratulations on your new property purchase!
When you work with an experienced real estate agent, the process of buying property doesn't have to be complex. With just five simple steps, you are now ready to take ownership of your property and start enjoying all the benefits that come along with it!
Should you desire further information, require assistance in your pursuit of the ideal property, or simply wish to extend a warm greeting, please do not hesitate to contact us. Our team is readily available and eager to provide you with any support or guidance you may require.
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