Homerun Brokers - Your Complete Marbella Guide 005 - Magazine - Page 97
F I NA N C I N G O P T I O N S A ND A D V I C E
The reservation contract is signed when placing a
reservation fee on your chosen property. The fee is
subject to the purchase price, but generally around 1%
of the total price. The transfer will be made through
the lawyer’s client account, and this will ensure that the
property is taken off the market for a set amount of
time, often around 14 days. Your legal representative
and agent will be monitoring the process all the way
through. The reservation contract is not legally binding,
so there is minimal or no financial penalty for backing
out, though the reservation fee is often non-refundable.
DUE DILIGENCE
Due diligence is done after signing of the reservation
contract. Some of the points to be checked include:
the current legal status of your property, making sure
the property is free of debt, ensuring that there are no
outstanding debts on the utilities and the existence of
planning permission if you are planning an immediate
extension or modifications to the property.
P R I VAT E P U R C HA S E C O NT RA C T
If you will be taking out mortgage financing on your
purchase - or for a variety of other reasons - the signing
of the title deed won’t be immediate. In most cases
buyers will sign an interim agreement - the private
purchase contract - after the completion of due
diligence. Generally, the payment at this stage is 10%
of the purchase price minus the reservation deposit.
This contract is legally binding. If the buyer withdraws,
they lose the deposit. If the seller withdraws, they must
return double the deposit.
T I T L E RE G I S T RAT I ON / LA N D R E G IS T RY
If you don’t need financing and would like to complete
your purchase once the due diligence is completed,
there is no need to sign and pay a private purchase
contract. In this case, you go directly to title deed stage
(Escritura) and pay the full purchase price minus the
reservation deposit.
Notary and registry fees are between €500 and €3000
depending on the property’s value and complexity of
the transaction. This is the stage when the outstanding
balance of the property will be paid, and you will
receive your Nota Simple and title deed making you the
new owner of your property. As soon as you receive the
title deed, your details will be sent to the Land Registry
and the utility companies informed of the name change.
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G U I D E
R E S E RVAT I ON C ON T RA C T
B U Y I N G
Securing financing is a crucial step in the property
purchase process for many buyers. Obtaining a
loan guarantee or mortgage pre-approval from your
bank ensures clarity on your borrowing capacity and
demonstrates to sellers that you are a serious and
qualified buyer. This strengthens your position, allows
you to act swiftly in a competitive market, and ensures
your search remains focused on properties within your
budget.
