Buying Process in Javea: Step-by-Step Guide
1. Setting Your Budget
The first step in purchasing a property in Javea is to determine your budget. When buying in Spain, it's important to account for additional taxes and fees, which typically amount to around 12% on top of the purchase price. The largest expense is the 10% property purchase tax. Other costs include legal fees, notary services, and land registry, which generally make up the remaining 2%. These fees can vary depending on the property price, as some charges are fixed regardless of the property cost.
2. Do You Need a Mortgage?
If you need a mortgage, it’s essential to contact a bank or mortgage broker early to get pre-approval. Banks in Spain typically lend up to 80% of the property value for residents and 70% for non-residents. This percentage is subject to an affordability check, which examines your income and financial obligations.
3. What Type of Property Do You Want?
Next, consider what type of property suits your needs. Is it a permanent home, a holiday retreat, or a rental investment? Do you want a property in perfect condition, or are you open to renovation projects? Think about location preferences too, whether you’d like to be within walking distance of amenities or in a peaceful area requiring a drive. Are you leaning toward an apartment or a villa with a private pool? At Javea Home Finders, we take time to understand your needs and recommend properties and locations that match your lifestyle.
4. Selecting an Agent
You can either choose to work with one agent or go it alone. In this region, agents collaborate, which means your chosen agent can usually arrange viewings for any property on the market. Working with one agent simplifies the process, allowing you to build a relationship and trust with them. They’ll arrange all your viewings and create a schedule to maximise your time, especially helpful if you're planning a short trip. Alternatively, you could contact multiple agents through property portals, but this can be more time-consuming and less efficient. It's advisable to speak with a few agents first to ensure they understand your needs and are responsive, to enable you to choose the best one for you.
5. Viewing Properties
This is often the most exciting part! You may fall in love with the first property you see, or it might take 20 viewings to find "the one." At Javea Home Finders, we ensure viewings are informative, providing accurate and honest details about each property. Although buying a home is usually a matter of gut feeling, it’s said that most buyers know within 15 seconds if a property is right for them.
6. Making an Offer
Once you’ve found your ideal property, the next step is to make an offer. Depending on market conditions, we can help you propose an appropriate offer. It’s common to go through a counter-offer stage, eventually agreeing on a price through negotiation.
7. Reservation
When your offer is accepted, a reservation contract is signed, and a deposit (usually between €3,000 and €10,000) is paid to take the property off the market. Your lawyer will then begin inspecting the legal paperwork. If any significant issues arise with the property, your reservation fee is returned. However, if you decide not to proceed after this point and no issues are found with the property, the reservation fee is non-refundable.
8. Instructing a Conveyancer
It’s essential to hire an independent lawyer or gestor who specialises in conveyancing to check that the property is free of debts or legal complications. This process usually takes between 2 to 4 weeks, depending on the complexity of the paperwork and if you are requesting a mortgage, as the bank will also require a valuation of the property.
9. Deposit Contract (Arras)
Once your lawyer confirms everything is in order, you’ll sign a deposit contract and pay 10% of the purchase price, minus the reservation fee. This contract will also set a completion date, typically 4 to 6 weeks later. If you withdraw after signing, you will lose your deposit. However, if the seller withdraws, they are legally obliged to return double the deposit to you.
10. Completion at the Notary
Completion usually occurs around 8 weeks after the initial reservation. The final step involves signing the paperwork in front of a notary. You or a designated person with power of attorney must be present to complete the sale and receive the keys to your new property.
11. After Signing
After completion, your lawyer will transfer the utility contracts and local taxes into your name. They will also advise you on any legal obligations you need to be aware of, such as annual tax returns or obtaining a tourist licence if you plan to rent the property.
With Javea Home Finders guiding you every step of the way, you can navigate the buying process with confidence and ease.