Possibilities of financing
Before a mortgage is applied, the bank arranges an estimate by an approved expert. As additional costs for the real estate acquisition you had to estimate approx. 10% of the purchase price. Additional costs are: Notary costs, costs for the admission of the mortgage, Entry in the land registers of the mortgage, various taxes.
Letter of intent (precontract/preliminary agreement) about the purchase of a real estate- contrato de arras
The letter of intent protects the buyer the option on the real estate for a certain period by a deposit of usually 10%. Withdraw the buyer from the Option, he loses his deposit. If the seller withdraws from the option, he must pay back the double sum. The deposit is settled at the definite purchase. The option sum is deposited on an escrow account.
Land register – registro de la propiedad
The Spanish land registry lists all real estates and possible charges like mortgages, usufruct or rights-of-way. With transfer of ownership the notary applies the change in the land register. Before a deposit is made, the bank or our lawyer takes a certificate of title.