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Buying Process

Buying property in the Costa del Sol is very straightforward and when you buy with Signature Properties you can rest assured your purchase is handled professionally and correctly. Our experienced team deal with all the needed professionals to guarantee a fluent process from A to Z. 
There are three basic stages of the purchase, described below. 

Reservation Agreement and Deposit

Buyer and seller sign a simple offer and reservation agreement and the buyer pays a reservation deposit as a gesture of good faith. This confirms the agreement of buyer and seller, subject to the property searches, and takes the property off the market keeping it reserved by the seller for the buyer for an agreed period during which the lawyers will make the necessary checks and prepare a Private Contract.

Private Contract

When the lawyers have confirmed that the legal position of the property is in order, a Private Contract is drawn up and signed by both buyer and seller. If any irregularities have been discovered, the buyer can withdraw and the reservation deposit returned. If all is well it is usual for 10% of the agreed purchase price to be paid by the buyer. This contract is binding on both parties, and if the buyer withdraws, they forfeit the deposit. 


Completion of the purchase takes place at a notary where the deed of conveyance "Escritura Public" is signed by both parties, the balance of the purchase price is paid and the buyer takes vacant possession of the unencumbered property. Your lawyer will then lodge the deed at the property registry to assure legal title. 


The Cost are generally : 

Transfer Tax - The transfer tax in Andalucia is currently set at 7%. There is no Transfer Tax for new homes, instead they are subject to 10% Value Added Tax (known as IVA in Spain), plus 1,5% stamp duty. The purchase of plots, commercial premises and garages remains subject to 21% VAT (IVA). 

Notary and Land Registration Fees - Fixed by law on a sliding scale, usually between 0,5% and 1% of the purchase price. 

Lawyer's Fees - Typically 1% of the purchase price (plus VAT of 21%). 

Mortgage Fees - An arrangement fee of around 1% of the advance is typical. In addition, mortgages are taxed at around 1.5% of the advance. 

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