Let’s take a closer look at the legal information and procedures that any buyer wishing to purchase a property with TM Real Estate Group must follow.

Essential documentation required to complete the purchase

Whether you are a non-resident natural or legal person in Spain, you must comply with a series of requirements and formalities in order to proceed with the purchase process:

• Natural persons

You must have a valid passport or identity card. You must present your Spanish foreigners’ ID card, NIE, on the day on which the deed is signed. You must also open a bank account in Spain for the direct debit of the payment of water and electricity supplies, Spanish Property Tax (IBI) and other expenses. Likewise, you must also provide proof of the payments made to purchase the property. Finally, it is important that you have a tax representative and have translation and deed management services in place.

• Legal persons

The representatives must have a valid passport or identity card. The representatives’ Spanish foreigners’ ID card, NIE, must be presented on the day on which the deed is signed, as well as a Spanish corporate tax ID number, CIF, or the company’s accreditation documents, duly translated and apostilled. To speed up the process, you must open a Spanish bank account for the direct debit of water, electricity, property tax and other expenses. Likewise, you must also provide proof of the payments made to purchase the property. Finally, it is important that you have a tax representative and have translation and deed management services in place.

Documentation to be signed by buyers

When purchasing a TM property, two private documents are usually signed: the deposit or reservation contract and the purchase contract. Let us look at the four steps in detail:

• Deposit or reservation contract

Before signing the purchase contract, a deposit contract must be signed, with an amount of money being paid to reserve it. These deposits are “penitential or withdrawal deposits”, therefore, they allow the buyer to withdraw from the purchase, taking into account that if it is the buyer who withdraws from the purchase, they will lose the amounts paid; whereas, if the seller is the one who withdraws, they must return double the amount paid. It is advisable for the buyer to apply for a Spanish foreigners’ ID card, NIE, and to validate their passports.

• Purchase contract

The signing of the purchase contract is the formal provision of consent by both parties. The buyer pays the amounts on account of the price in due time and form, and the seller undertakes to build and deliver the property under the agreed conditions and on the agreed dates. The documentation signed by the intervening parties is:

• Purchase contract.
• Set of plans.
• Lists of equipment and kitchenware chosen by the client, if applicable.
• Building specifications.
• Authorisations for the companies to contract water and electricity supplies.
• Any other documentation specific to the development.

• Payment methods and delivery dates in the purchase contract

The private document must be complied with, and therefore, any variation must be agreed upon jointly by both parties. In addition, only the buyers can make payments to the account of the company owner and on the agreed dates. A crucial point to bear in mind is that the keys and the signing of the title deeds to the property will not be handed over until the property has been paid for in full, including alterations and equipment.

• Public deed of sale

The public deed is required to register the property in the Land Registry and to obtain the mortgage loan, if required. The notarial deed carries more weight than the purchase contract due to its validity vis-à-vis third parties and is backed by the notary’s faith, legal certainty and advice.

Purchase and mortgage costs

The buyer must make several payments:

• The seller, in this case, TM Real Estate Group.
• The Notary.
• The administrators.
• The Treasury.
• The Land Registry.
• The translator.
• The tax representative.
• Lawyers’ fees.

In addition, once the property has been acquired, the following annual payments must be made:

• Property tax: this is a local tax levied by the local council where the property is located.
• Non-resident income tax: non-residents who own an urban property located in Spanish territory are obliged to pay this tax.
• Owners’ association fees.
• Water and electricity bills.

Documentation for the formalisation of mortgage and constitution expenses

In order to apply for housing finance, you must show that you have the financial capacity to repay the amounts that the bank lends you. A financial entity studies the viability of the mortgage credit, when it is a natural person, taking into account:

• Employment stability.
• Country of residence and country of origin of the applicant.
• Annual income and currency in which it is received.
• Financial history.
• Tax credits.
• Other additional guarantees.

If, on the other hand, the buyer is a legal entity, all the information concerning the company must be provided, duly translated and apostilled.

In the case of the constitution of a mortgage, the financial institution assumes the costs of notary, agency, registration and stamp duty in accordance with Article 29 1/1993 of the Spanish Tax on Property Transfer and Documented Legal Acts.

Signing of deed of sale and mortgage

In order to grant the deed, the property must have been paid for in advance. The following must be present at the signing of the deed: the buyers, a representative of the selling company, a translator or the representatives of the bank, if there is a mortgage.

Once it has been signed, the buyer can go to the property where a member of the Customer Service team will accompany them to their home.

Handing over the keys

The most important and (happiest) part for the owner is the handing over of the keys to the property! TM Real Estate Group’s Customer Services team will hand over the keys to the property and provide information on the most important aspects of the property. In addition, all customers can request access to their private area www.clientestm.com.