First of all, you must bear in mind that once you sign the deed it will be recommended that you register the sale in the Land Registry. The cost of this procedure depends on the price of the property. It usually ranges between €400 and €650.
Who makes the payment: If there is a mortgage, the bank pays this expense.
Bank charges
When carrying out the operation from abroad, transaction costs may arise, especially if a currency other than the euro is used. If you have any doubts regarding this matter, you can seek the help of a currency exchange specialist to reduce these costs.
You should also bear in mind that the bank charges a fee for issuing the bank transfer. It is recommended that you make a prior consultation.
Who makes the payment: bank charges must be borne by the property buyer.
Notary fees
In the process of drafting and signing the property deed, the Notary is very important in order to ensure that the procedure is carried out correctly. The prices of this task are calculated based on the price of the property and the complexity of the drafting of the deed, the number of copies that are required or its length.
Who pays: If there is a mortgage, the bank pays this expense.
Mortgage expenses
If you apply for a loan at a bank, it is likely that you will have to pay an arrangement fee. This amount is subtracted from the loan and varies between 0.25% and 3%. Not all banks charge this fee, and if they do, you can negotiate it.
Another cost associated with the mortgage is the appraisal, which, depending on who carries out the appraisal and the value placed on the property, can cost between €250 and €800. Please note that the appraisal will be valid for 6 months.
The final expense associated with the mortgage is usually life and home insurance, which is also deducted from the mortgage amount.
Who pays: these expenses are borne by the buyer.
Legal services
If you have any doubts regarding specifics of the process, the best thing to do is to seek the help of a specialised lawyer. They can carry out procedures on your behalf, go to the Notary’s office… A lawyer can give you the peace of mind you need during a process like this.
Who pays: this expense is borne by the buyer.
That’s it! Please remember that if you have any queries regarding the purchase of your new TM home, you can contact us.
