the selling process...
The process for selling property here in Spain is very similar to UK and other European countries.

required information...
NIE number -To be able to sell your property in spain it is necessary to obtain an NIE number (equivalent to UK National Insurance Number) which can take 3-6 weeks from application. The cost of an NIE number is low at approximately 40 euros, for convenience many companies offer a service to do all the hard work for you for approximately 100 euros. We can put you in touch with a reputable company should you require help with this.

escritura de compraventa - This is your copy of the title deed from when you bought your property. This states the declared price paid for the property and enables your legal advisor to check any charges against the property e,g, outstanding taxes etc and any other special conditions that may affect the property.

building/planning permission - If you have made any alterations to your property that require planning/building permission, the appropriate documents must be provided. If you do not have them or are unsure about any required documentation, please speak to your legal advisor on how to obtain copies.

mortgage documents - If you have an exisitng mortgage on the property then the original mortgage documents should be obtained and provided with the escritura.

property taxes - Buyers require as much information about a property as possible and the annual cost of property taxes is usually a question asked, so this information is very useful for us to know.

community charges - If you own an apartment or villa within a communal complex then you undoubtedly pay community fees. A statement with the total annual charges and recent payments to show the fees are paid up to date is required.

utility bills - To help with the transition from you to your buyer, it is helpful to provide a copy of all utility bills so the details can be passed onto the buyer/buyers representative and the necessary arrangements can be made.

fixtures & fittings - When selling your property, it is important to think about what you like to take with you and what you are prepared to leave. Fixtures & fittings can be used as part of the negotiation process so a list detailing any items that could be included with the sale is a good idea. Key items could include curtains, curtain poles, light fittings, furniture, air-conditiong units and kitchen appliances.

the option contract...
Once a buyer has been found and an acceptable offer agreed the next step is to sign an Option Contract. This is usually signed between 2-10 days of the offer being accepted.The Option Contract contains the specific details of the offer acceptance including the following:
names of involved parties, the agreed price, agreed date of completion, any fixtures & fittings to be included in the sale and that the property is to be sold free from charges, tenants (if applicable), town hall fines and forced sale orders. It should also state, if appropriate, that the gas & electricity are legally connected.

the deposit...
The buyer is expected to place a 10% deposit down within a week (or other agreed time period) of signing the Option Contract. Where the deposit is placed is down to negotiations but it is usually recommended that it is placed in an escrow account (an account that cannot be touched until certain conditions are met) or that it sits with your legal representative under instruction that the funds are not to be released until completion.

important - once the Option Contract has been signed and deposit paid, it is important to remember that penalties have to be paid should either party back out of the agreement. If the buyer backs out then they would lose their deposit and if the seller backs out it could be as much as twice the deposit.

completion...
Completion will take place on the date agreed with the buyer that is stated in the Option Contract. If the property has an exisiting mortgage, a representative from the bank will be present to deal with the mortgage and authorise any instructions. If you are unable to attend, power of attorney can be granted to your solicitor so they can make the completion on your behalf.
Completion must legally take place before a Notary (an impartial government official responsible for the execution of public documents) who will witness the signing and transfer of the Escritua de Compraventa (title deeds). The Notary will confirm the identity of all parties involved, check there are no outstanding debts or orders on the property and check the Land Registry to very legal ownership.
Once the escritura has been signed infront of the Notary, the remaining balance of the purchase price plus any other fees is paid and the keys are handed over to the new owners.

costs...
commission - the seller is responsible for paying the sales commission. This is 5% of the agreed sale price plus 16% IVA (VAT)

mortgage fees - you should confirm with your mortgage lender what their fees are for redeeming, transferring or passing on your mortgage. Notary fees realted to your mortgage are also charged and are approximately 800 euros, again this amount should be confirmed by your bank.

tax - Capital Gains Tax is charged on the difference between the old purchase price and the new sale price declared on the escritura. The rate is charged at 18% for residents and non-residents alike. This reduces based on the number of years the seller has owned the property. If the seller purchased the property before 1987, no capital gains tax will be due.
To ensure the Spanish Government collects this tax from non-residents, a compulsory deduction of 3% of the purchase price is issued. It is the obligation of the buyers representative to collect and pay this monet at the local tax office within 30 days of completion.
Once a property is sold, the sellers liability is calculated and it is possible to apply for a rebate on any money owed should it be less, this however, can take up to 2 years should the tax office agree to pay. If the liabilities calculated are more than the 5% paid, the difference should be paid direct to the local tax office.

other costs - Spanish law states that the seller should pay part of the notary fee and the "plusvalia municipal" unless otherwise agreed. Here in the Balearics, however, it is usual for the buyer to pay all charges. Plusvalia realtes to the length of ownership by the seller and the increase in value of the land. It is usually less than 1% of the agreed price. This can however, be used as part of the negotations should the plusvalia be a substantial amount.

preparing your home...
a little effort can go a long way when it comes to selling your property.Making your property welcoming and ensuring it is clean and tidy for your viewings is essential to ensure possible buyers see your property at its best and not distracting factors. Simple inexpensive alterations can have a huge impact on how prospective buyers see your home.
Below are some simple hints & tips to get the most out of your property and your viewings:

first impressions - clean & feshly painted front doors always look more inviting and give a first impression of a cared about home.

keep it tidy - keep your property vaccumed and dusted at all times.

let there be light - open curtains, blinds & windows. A bright home always looks more welcoming and a happier place to be. Turning on all lights inside whether it be day or night also makes a big difference. As well as making it brighter it gives the property a cosier atmosphere.

spring clean - giving your property a good clean throughout will make it feel & smell fresher. If you're an absent owner why not ask your management company to give the property a good once over.

clear out the clutter - Start the packing early! We all have personal items, it's what makes a home our home but what appeals to you may not appeal to your buyer and clutter can distract from what could otherwise be a perfect home. Removing items such as childrens toys and unecessary furtniture can also make rooms look larger. Organise and tidy wardrobe space as buyers can't help but open wardrobes and any other cupboard with a handle.

odours - pet, smoke and other odours can be offensive and put buyers off. Try plug in air fresheners and open windows to freshen the air.

kitchens - being one of the most expensive alterations in a house, kitchens can make or break a sale. Make the most out of yours by clearing any unecessary clutter and appliances and giving the oven/hob/extractor a good clean to remove any grease.

bathrooms - it's surprising what impact the smallest rooms in a house can have. Repair dripping taps or broken tiles, scrub grouting clean, shut toilet lids and definately no hair in sinks/baths/showers. Arrange fresh towels and decorative soaps.

smelling of roses - flowers make a huge difference and instantly add colour to rooms. They can make properties look more cared as well as add a nice scent.

get a paint job -covering small cracks and touching up walls with fresh paint gives the impression of a well maintained home.

Don't forget we're here to help and we have a great catalogue of professional & reliable contacts to help with anyting from last minute repair jobs, decoration to removal services, simply contact the office and a member of our team will help.