Everything You Need for Selling a Property in Spain
December 13, 2021
Are you relocating to a new place and want to sell your property in Spain? If the answer is yes and you wish to sell your propert, you have come to the right place. Selling your home in Spain may prove to be a pretty tiresome job, if you have no idea of the relevant information required to do so.
This article is about everything you need to know to sell your property in Spain. This will include information such as: who is liable to sell a property, how to sell it and what documents are required to smoothly carry-out the process.
Think no further, Equinox Urban Housing offers you the best advice on how to sell your property while you relax and concentrate on other matters. We are the best real estate agency to help you with the process when it comes to outsourcing the task.
How to Sell a Property in Spain
There are mainly two options:
In this case, the owner has the privilege of selling his house on his own. One of the advantages of privately selling your property is that you are in control of the process. However, it is important to keep in mind that this is a complex operation that requires a lot of experience and enough patience in order to close the deal with the maximum profit. If you carry-out the sale process by yourself, you will have to coordinate the property's viewings, gather all the necessary documents and sometimes attend public administration offices to request duplicates of missing documents as well as coordinating final purchase and sale deed's signature at the Notary Public, process which can mean a lot of time and unnecessary stress.
Through an Agency
The second option, and the most recommended, is to find an agent to help you sell your home. You will save all the hassle mentioned above. It may be tempting to work with a relative or close friend on this task, but it is highly recommended talking to a professional real estate agent with proven expertise whocan sell your home at an interesting price in a short amount of time.
Requirements to Sell a Property in Spain
Imagine that just on the verge of selling your property in Spain, you realize that you are missing an essential document. This can be very frustrating. In order to help you avoid such a mishap, we will give an overview of all the mandatory documents when selling your home. They include:
The Property’s Title Deed
A property title or sales deed is one of the most important documents you must have when selling your property in Spain. This document proves you are the owner of the property and will be necessary for the transfer of ownership to the new buyer. The lawyer or Notary Public Official involved in the sale will require the original copy of the title deed. If you cannot find it, you can always require a new copy from the Notary Public where the purchase and sale operation was carried out. If you purchased the property with a mortgage, the bank should have a copy also. It should be noted that the original title deed should remain with you even when the sale is completed.
The Efficiency Energy Certificate
Since 2013, it has been mandatory for anyone selling a property in Spain to have an efficiency energy certificate. The certificate is an indicator of the house's energy efficiency. The house gets rated from A to G, with A being the most efficient one.
Proof of Mortgage Cancellation
This document is called the "zero mortgage balance certificate" and acts as proof that the mortgage has been paid or "cancelled". If there are any outstanding mortgage arrears, they must be paid before you can sell the property to a new owner. With the mortgage paid, the new owner can easily register the property under his name at the Public Property Registry.The cancellation of the mortgage is carried-out before or on the same day of the sale. The buyer usually requests two certified checks from his bank. The first will be drafted in the name of the bank which granted the mortgage to the seller and the second in the name of the seller.
Latest Payment of Bills
As the property owner, you should provide up-to-date payments of gas, water, and electricity. The new owners will then proceed to change the bank account and holder of all utilities. New owners need to know that no existing debts on utilities exist when they sign the purchase and sale act.
Real Estate Tax
Real Estate Tax (IBI) is a Spanish property tax that applies to all residents and non-residents. All property owners must pay it once a year on the 1st of January. The buyer and the seller have to agree on the amount of IBI each has to pay. You always have to verify that the Deed mentions which party will pay the tax on the purchase year.
These certificates are issued by the town halls when the property meets their requirements. They are issued to the builder when they finish a new construction. It expires after fifteen years, and then the homeowner has to renew it again.
These only apply when you are selling a house that shares common facilities with the community. These facilities may cover pools, the building, gym and garden maintenance costs. The new buyer will need a copy of the rules and statutes of the community before they can move in.
Technical Inspection Of Buildings
This document applies to buildings in Barcelona that are older than 45 years . Such report serves to certify that the owners keep the builidingin a correct state of use and maintenance. An architect must review the common elements to detect if there are deficiencies that pose imminent risk to the building inhabitants. The report must evaluate the general condition of the building according to four qualifications. If any deficiencies are detected, Government allows the Community a certain period of time, depending on the gravity of the deficiency, to carry-out the necessary repairs.
Sale Process and Conditions
Selling your property in Spain may turn out to be a challenging task since it requires careful planning, a proper understanding of the process, and a lot of paperwork. Some basic steps that can help your home selling process go smoothly include:
Know Your Responsibilities and Costs
When you sell your property in Spain, you should be ready to decide whether you will sell it on your own or if you hire a real estate agent to help you. You should also be aware of the costs that can be incurred, including listing the property for sale on different real-estate portals, paying real estate agent's commission, carrying-out potential repairs requested by the buyer and paying agreed upon closing costs.
Set a Price
Pricing your home at its right value will do you a great favour when it comes to looking for buyers. Several factors have to be considered before deciding on the best-selling price for your property. They include:
- The supply and demand in the surrounding area: It is best to sell your Spanish home when demand is high and supply is low. It is at this time that you can maximise the amount of money you will get for your property.
- The fair market value of the property based on the appraisal.
- Owner needs may tend to influence the purchase. When you are in a hurry to sell your home, you may be forced to accept any offer, usually low.
- How many similar properties are on sale. If similar properties are selling high, yours might sell at the same rate.
Show Your Home
When selling your property, you need to make it as attractive as possible to bring more buyers. Physical and virtual home inspections are the golden opportunity to showcase what your home has and how much space and rooms it provides. You may even have to do some painting to make them look more attractive and appealing to potential buyers. Cleaning out clutter and closets and repositioning furniture can help show off the amount of space your property offers.
As the property seller, you can either choose to accept or reject an offer. When the offers do not please you enough, you have the freedom of making a counteroffer to the buyer. The offer only becomes binding once both parties agree upon it. The resulting contract should contain an expiration date, initial deposit, financial terms and contingencies, warranties, and relevant fees.
Prepare for Closing
Having followed all the steps above, it's time to prepare for the closing. Several steps have to be taken into account before the closure of the sale is complete, including:
- A physical inspection of the building should be done.
- A simple copy of the title deed is required to the Public Property Registry to verify that you are the real owner of the property and that no other claims exist on the property, a deposit agreement (Arras) is signed in which Buyer anticipates 10% of the purchase price, all property documents are transmitted to the Notary Public, Buyer negotiaites if necessary a loan with the Bank.
Attend the Closing
This is the final step in the whole process. Here, both parties attend to the Notary Public where the purchase and sale agreement is read by the Notary Public and the final sale deed is delivered to the buyer and the ownership transferred to him. Buyer is responsible for the payment of the ITP (Property Transfer Tax) equivalent to 10% of the total purcharse value as well as Notary Public and Public Property Registry fees. Seller is responsible for the payment of the Municipal Tax Gains (Plusvalia).
Where can I sell my house in Spain?
Are you wondering where you can sell your house in Spain? If yes, then the best way to sell your house is by using a real estate agency. Equinox Urban Housing is one of the best agencies to go to when selling your home. We will relieve you of all the tiresome duties of searching for potential clients to buy your home. We also do showings to the clients and complete all the required paperwork; plus, in some instances, we can take control of any repairs that need to be done as requested by the client.
Selling your home is never easy, especially if it is the place you have grown in and have so many great memories of it. In some instances, you might have spent most of your life trying to make it what it currently is. Equinox Urban Housing offers you the best value for your property by selling it at a reasonable price in the shortest amount of time.