The Spanish real estate market presents some peculiarities that differentiate it from other European markets. The role of the notary, payment methods, and negotiations are some of them.
We present them to you in this article.
By taking into account these objective differences, buyers and sellers can approach the real estate market with a more informed perspective adapted to local particularities.
One of the elements that generates doubts for European buyers in Spain is usually the role of the notary. The Spanish notary is a judicial officer who represents the State and maintains an impartial position in real estate transactions. Therefore, the notary does not protect the interests of any specific party, thus avoiding favoring either the buyer or the seller.
Their role consists of drafting the sales contract certifying its conformity, validity, and ensuring legal security. They also certify the identity, capacity, and legitimacy of the parties involved in the sales contract, and verify the authenticity of the attached documents.
Additionally, in Spain, the notary does not receive the money from the sale as their counterparts do in other countries like France. Payment is made directly to the seller, and the notary certifies this payment at the official moment of sale.
The notary's fees are usually covered by the buyer and are paid on the same day as the signing.
Another doubt that often arises for buyers from other regions or countries is related to agency fees. In the Valencian Community, generally, real estate agency commissions are usually included in the price of the property. However, as the sector is poorly regulated and there are many real estate agents who are not governed by any code, it is essential to inform yourself and clarify these aspects with each intermediary to avoid surprises, as some agencies advertise their properties without including the additional costs of their fees.
When a buyer finds a property that interests them and wishes to make an offer, it is common in Spain for the real estate agency marketing the property to request a reservation (not to be confused with the "Arras Contract" which we will discuss later).
The reservation is a document that formalizes the offer, establishes the buyer's intention, and is accompanied by a deposit that can range from 1,000 to 5,000 euros, depending on the value of the property.
Specifically, when you make this deposit, the agency stops the advertising promotion of the property and visits, and negotiations begin on the price or payment conditions and deadlines with the seller.
If the seller does not accept the proposal made by the buyer in the reservation, the buyer receives the deposit back. If they reach an agreement, they proceed to the next stage, which is the signing of the "Arras Contract," and the deposit is taken as a down payment on the sale price of the property.
If you would like to know more details, such as possible differences in the sizes of homes in Spain or the technical diagnoses of the home provided to a buyer, please contact us, we will be happy to assist you.