Properties for sale
How do estate agents work on the Costa del Sol ?
On the Costa del Sol, real estate offices / brokers do not work with a closed portfolio like in the Northern of Europe, but with an open portfolio.
This means that we can show you all properties that are for sale on the Costa del Sol. Whether it is a property that we have in our own portfolio or not.
That way you do not have to make appointments with 100 brokers, but 1 agent is enough to visit every home that you have seen online.
We have access to the database of everything for sale on the Costa del Sol and in this way we select the suitable properties for you, within the preferred zone with the criteria that you specifically want and within your budget.
A lot is advertised online about what is for sale or maybe already sold and is used as a marketing tool to attract customers. We want to work transparently and will only send you propertties for sale at this moment.
The website consciously consists of a selection of properties so that you do not waste time with hours looking at photos and searching. We see ourselves as real estate agents and look for the suitable property for you and when you come to the Costa del Sol we will only visit the properties that meet your criteria that we have pre-selected via email.
We believe in personal attention & customized offer. That is why it is important to know your wishes. You can enter your wishes on our contact form and then we will contact you by telephone to discuss this list and coordinate the next steps together.
How do you determine your budget?
First, a distinction must be made between the home that is purchased for the first time, ie off plan or directly from the developer. On the other hand, it may be a property that was previously purchased by another buyer from a developer, so there is a second transfer.
In Andalusia the following golden rule applies:
-Property in resale: 10-12% costs calculated on the purchase price
-New construction: 12-14% costs calculated on the purchase price
These additional costs when purchasing consist of:
Transfer tax: applicable when transferring an already existing home. This tax is charged with a progressive rate.
Sales price up to € 400,000: 8% on top of the sales price
For the € 400,000 to € 700,000 drive: 9%
For the disc above € 700,000: 10%
An example: you buy a home of 800,000 euros. The registration fee on the first tranche of 400,000 euros is 32,000 euros. You pay 27,000 euros in the second installment. You owe 10,000 euros on the last installment. With a total registration tax of 69,000 euros, you are then at 8.63% registration tax.
For a new-build home you must take into account an additional cost of 10% VAT. There is no transfer tax on new construction.
Lawyer costs: the costs for the legal investigation usually amount to 1% of the purchase amount + 21% VAT. We advise all our customers not to save money on a good lawyer. The notary in Spain does not perform the same duties as in Northern Europe and will therefore not perform any research work for you.
The lawyer in Spain will conduct a due diligence investigation into the legality of the property, and will also check whether the property is properly registered in the property register ('registro de la propiedad') and in the land register ('el catastro') ) as well as whether the property is free of charges, costs, debts and up-to-date with all payments of local contributions and community costs. If due diligence is not done properly you risk becoming the new owner not only from the property but also the outstanding debts of the previous owner.
Notary fees and registration fees: These are variable and depend on the complexity of the deed. As a golden rule we use 1% + 21% VAT for existing resale properties as a notary's fee.
In case you need a mortgage, you pay 2 to 3% more since you also pay notary fees for registering the mortgage. Above this there are also costs for registration in the property register, taxes, administrative costs (foregone), estimation and file costs.
How does the purchase process work?
Step 1: Reservation contract
Once you have found the perfect property, the first step is to register a deposit with the broker or your lawyer. This amount is usually around € 6000 and for this a 'reservation document' must be signed by you, the seller and the broker or lawyer. The document states that the three parties agree with the agreed selling price and the duration of the transaction until signing at notary. When this reservationn document is signed the property is taken off the market.
Step 2: Private Purchase Contract
About 2-3 weeks after the deposit has been paid, a purchase contract is drawn up and signed by both parties, the buyer and the seller and payment of a second advance takes place. This payment is determined per type of purchase; for second-hand sales this is 10% of the purchase price and for new construction this can vary and is determined by the project developer.
This 'Private Purchase Contract' is similar to the first Reservation Document with the difference that all Terms and Conditions of the purchase are laid down in this document and must be approved by both parties, buyer and seller. This is the first legal phase and guidance from a lawyer is strongly advised.
Your lawyer will perform a full due diligence to find out which debts, taxes and other debts remain on the property. In Spain all taxes, common costs or utility arrears etc. are attached to the property and not to the owner. That is why these 'arrears / debts' are transferable to the new owner. For this reason it is very important that this is carefully selected by a Lawyer to prevent financial 'surprises' for you.
Necessary points that your lawyer will investigate in this due diligence include 'Nota Simple' (perhaps the most important document during a purchase in Spain, this document contains all information regarding ownership from the first day), IBI (real estate) withholding tax), community costs, presence of an energy performance certificate (now legally required when selling a home), and outstanding utility bills.
Step 3: Notarial deed
The purchase is formally closed and completed when the title deed is signed at notary. At that time, the balance is paid and the ownership transferred to the name of the buyer. The deed of ownership always determines that the property has been sold free of taxes and charges.