In July we held a seminar as part of our series of webinars, in which we dealt with everything you need to know about the process of buying a VAPF home off plan or under construction. From the steps you need to take, to the advantages and disadvantages, and any other aspects you need to consider.
Helping us in this task were some experts in the field, namely Fuster & Associates law firm. They are specialists in the property market with over 20 years’ experience, and have a team of multilingual lawyers and tax consultants, with several offices on the Costa Blanca Norte. In Alicante province there are offices in Teulada and Finestrat, and also in Murcia province. in La Zenia and Los Alcázares.
In this blog post we share some of the advice that they gave us in the webinar.
The first steps to buying an off-plan home
The process of buying a house off-plan involves four basic steps.
- Firstly, the buyer needs to sign a reservation contract which is an undertaking to buy the property from the vendor, who will ensure that it will no longer be available to other buyers. In the case of VAPF clients, a deposit of 12.000€ is payable, and this will subsequently be deducted from the total price of the property.
- Once the property has been reserved, when the contract is signed, the buyer will pay 35% of the sale price of the house.
- While the house is being built, a further 35% of the total value will be paid.
- Finally, when construction is complete, the remaining 30% balance will be paid.
The agency contract
The first step in terms of bureaucracy is to sign the agency contract. On signature of this agreement one person entrusts handling of one or more services, commissions, formalities or negotiations to another person. In this case, the latter is the person who takes charge of these tasks on behalf of the former at their liability.
This contract can be drawn up in two ways, either in Spain or in the buyer’s country of residence.
If signature of the contract coincides with the buyer’s visit to Spain, at VAPF we offer to accompany the client to the notary and provide a translation service, if this is needed to understand the whole process. If you prefer to complete the procedure in your own country, we offer to find a notary close to your home. In this case, we prepare that trustee or agency contract in Spanish and also in the buyer’s mother tongue. When this has been signed, the contract will be returned to us and we proceed to the next step.
Obtain your own NIE
It is essential for our foreign clients when buying one of our homes to obtain their own NIE. This document stands for Número de Identidad de Extranjero, or Foreign Identity Number. You will need this document for any formality that you have to complete in Spain, from buying a property to opening a bank account. Not only that, it enables the Spanish Treasury to identify buyers.
Opening a bank account in Spain
Opening a bank account in Spain is another specific recommendation that we make to new clients, although it is not essential. However, with an account, buyers can keep a greater control over the costs of their property, as well as their subsequent contracts for electricity and water supplies, and telephone and internet services. They will also have more control over the taxes and fees that need to be paid.
We will continue in future blog posts with further details of the purchasing process with VAPF (taxes, guarantees, legal aspects …). For the moment why not take a look at all our available villas and apartments. For any queries or for further information, you can contact us by filling in this form.