Cost of Buying Property

It is important to seek the advice and assistance of a local solicitor or gestor, to help you with your property purchase. They will check the deeds of the property and the names of the registered owners, if there any loans or mortgages outstanding, or if there are any encumbrances / debts on the property.

Once you have found your ideal property in Javea or the surrounding areas, you will be asked to pay a reservation deposit, to take it off the market and to avoid the property being sold to someone else by another agent or the vendor. The reservation contract must show the both the purchasers´ and vendors´ details, the property address and the amount paid for the reservation deposit, which is usually 5,000 euros. Make sure this payment is refundable subject to the following (if applicable): A. a mortgage not being granted by a bank (if required), or B. if the property has title deed complications, or C. subject to a structural survey (if required).

Shortly after you have paid the 5,000 euros reservation deposit, your solicitor will obtain a “Nota Simple” from the Javea Registro (property register office), which will confirm if the property has been registered correctly with all the necessary licences etc., the names appearing on the title deeds are correct, and if there are any mortgages or debts on the property or the land, which need to be paid on completion of the purchase / sale.

Once everything has been confirmed to be correct and your mortgage has been approved (if needed) the balance of a 10% deposit should be paid (10% of the declared property value, less the 5,000 euros reservation deposit already paid), at the same time as signing the legally binding sales / purchase contract (signed by the vendor and the purchaser). This is usually done within 3 to 4 weeks after paying your initial reservation deposit. The contract will also state the completion date, which is usually within 1 to 3 months after signing the reservation contract, unless otherwise agreed. At this stage, if the purchaser backs out of the sale, the vendor can legally keep the 10% paid. If the vendor backs out, the purchaser can claim the 10% back and a further 10% as compensation (which will be stated in the legally binding contract).

An appointment will be made for the date of completion, as agreed by both vendor and purchaser, to meet at the notary office in order to sign the deeds (the escritura pública) and pay the balance of the declared price (the asking price, less the 10% you have already paid). The usual method of payment of the balance due, is to send your funds by bank transfer to the Notary office in question, and the Notary will transfer the funds to the vendors on the day of completion of your purchase. Your solicitor or gestor with advise you each step of the way during your purchase.

The purchase costs are approximately 12% of the purchase price. This includes a government tax (ITP), which is 10% of the purchase price. Notary office fees are approximately 1% of the property value and a further 1/2% is paid to property registry office. Solicitors´ charges may vary, from approximately 1000 euros upwards, plus 21% IVA (VAT), to deal with the purchase on your behalf. If you calculate 12% of the declared value for purchase costs, you will have some change left.

We will be pleased to recommend a reliable and professional solicitor or gestor to help you with your purchase.