THE PROCESS OF PURCHASING A HOUSE
Bcn Advisors has prepared this guide to provide you with information about the process of buying a property in Barcelona. Below is an explanation of the steps to keep in mind throughout the process. For additional information, please feel free to contact us through our website www.bcn-advisors.com or to call us at +34 931 800 272.
In order to be prepared when the perfect property comes along, we suggest you start putting together all the necessary documentation at the very beginning of the process, and looking into mortgage options if you need it.
- Documentation you will need: N.I.E (for expats) / D.N.I. (for nationals)
- Financing: before you start your search, it is important that you fully understand your financial situation and decide if you will need a mortgage. If you need financing, you should start approaching different banks about the type of mortgage you can apply for, and what they entail. You will then be able to start looking for properties within your budget.
Understanding your needs and communicating them to your Bcn Advisors agent will allow us to be more effective in assisting you with your search. Our targeted questionnaire and ongoing guidance and advice will help you build a solid foundation for your search.
- Budget: whether you need a mortgage or not, the first step is to set a realistic budget that will include all your needs and expenses.
- Choosing the right location: Where do you work? If you have children, where do they go to school? What are your hobbies?? Here are some of the questions that will help define your ideal location. Please read our Barcelona Neighborhood Guide for more information.
- Housing Requirements: size, number of bedrooms and bathrooms, special features important to you, etc.
- Viewings: Receiving your feedback after the first viewing helps us better understand your preferences and needs. We then craft our search and schedule viewings so that every step brings you closer to your ideal home.
- Deposit and Negociations: making a deposit to reserve a property is optional in the purchasing process. However, a deposit shows the seller the buyer´s serious interest in purchasing the property, which is plus while negotiations are underway. The deposit also gives the buyer purchasing priority over any other possible buyer. The property reservation form indicates the purchase price you are offering and sets a time frame to complete the purchase. If the parties fail to reach an agreement, the buyer´s deposit money is automatically fully returned. Once an agreement is reached, all the paperwork is again verified: Cédula de habitabilidad (certificate of habitation), Compraventa (Public Deed Document), Copia simple (a simplified version of the purchaser’s contract), Barcelona Property Register Certificate, and any outstanding mortgage remaining on the property.
- Contrato de arras (Earnest money contract): it’s usually equivalent to a 10% down-payment of the agreed price. This is an important agreement, as it seals the parties´ intent and agreement as to the price and conditions.
- The closing: The deed of sale must be certified by a notary chosen by the buyer. At this time, the seller’s title of the property is handed over to the buyer, and the buyer´s payment made to the seller.
The following is a list of the expenses incurred when purchasing a property:
We at Bcn Advisors understand that each customer requires a personalized service of the highest standard. We are here to help you and guide you throughout the process of purchasing a home in Barcelona so that it may be smooth and efficient.
- Property Registry fees.
- Notary fees.
- Registration fee for the “Registro de la propiedad”
- Transfer Tax
- Stamp Tax
What you’ll need: It is at this time when you must have on hand and complete the necessary documentation mentioned above to carry out the procedure.
- Personal documentation: DNI/NIE/Passport as the case may be.
- References: In order to make sure that the tenants have the necessary capacity to cover the stipulated expenses, Bcn Advisors usually requests references that qualify their financial situation depending on the type of client. For example, employment contract, payroll and income tax return, among others.
- Deposit: Depending on the agreement, a specific amount must be paid to the owner as a guarantee that once the lease ends, the property will be in the same condition as when it was received. If so, the full amount will be returned at the end of the rental contract; otherwise if there was any damage or flaw, it would be subtracted from it.
- Bank guarantee: In some occasions the owner requests a bank guarantee which responds in case of non-payment of the rent.
- Contract: Bcn Advisors works only with two types of contract: a. Temporary contracts between three and eleven months; Long-term contracts of one year of obligatory fulfillment, with the possibility of up to 5 years unless you decide to end it sooner.
- Fees: As a concept of Agency Expenses, Bcn Advisors requests 10% of the annual income + VAT. This amount must be paid when the contract is signed.