Step-by-Step Guide to Navigating Spain’s Property Sale

The first step is receiving an offer on your property. This offer is typically based on the current market value, property conditions, and any negotiations between you and the buyer. While this initial offer is not legally binding, it opens the path for a serious negotiation. Lucas Fox advises our clients on assessing and responding to offers, helping you understand the best approach based on buyer expectations and market dynamics.
If the terms are agreeable, the buyer proceeds with the next step. If negotiations fall through, the property remains available for other buyers.

Good Faith Deposit & Formal Letter of Intent

When an agreement is reached, the buyer will make a Good Faith Deposit (GFD). This deposit is a sign of the buyer’s commitment to move forward with the purchase. The buyer also submits a Formal Letter of Intent (LOI), which formally outlines the agreement terms and demonstrates their serious intent to complete the transaction.
This deposit protects you, the seller, by demonstrating the buyer’s commitment. If the buyer later decides not to proceed, the GFD is typically forfeited to you.

Reserve Agreement

Once the formal offer is accepted, both parties sign a Reserve Agreement. This legally binding agreement includes a Reserve Fee, which secures the property for the buyer and ensures it’s removed from the market.
The Reserve Agreement defines the following steps and timeline to finalize the transaction, providing a structured framework and solidifying the buyer's commitment to proceed.

Property Status Marked as Reserved

After the Reserve Agreement is signed and the Reserve Fee is paid, your property is marked as “reserved” and removed from the market. During this stage, both parties can prepare for the upcoming legal steps, knowing the sale is progressing smoothly.
The property remains reserved until the Private Arras Contract is signed, giving the buyer and seller protected time to complete due diligence and ensure all preparations are in order.

Reserve Agreement Terms

The Reserve Agreement outlines crucial terms, such as the timeline for signing the Private Arras Contract and paying the initial deposit. These terms clarify the next steps and help ensure a clear and organized sale process.
This agreement reduces potential misunderstandings, allowing both parties to have aligned expectations as the sale progresses.

Private Arras Contract

Following due diligence, both parties sign the Private Arras Contract (Contrato de Arras Privado). This formal agreement, one of the most significant steps, typically requires a deposit of around 10% of the property price from the buyer, further securing the commitment.
This contract also details penalties should either party fail to fulfill their obligations. For instance, if the buyer withdraws, they may forfeit their deposit, whereas if the seller backs out, they may need to compensate the buyer.

Public Purchase Sale Deed

The final step in the selling process is the signing of the Public Purchase Sale Deed (Escritura de compraventa) in the presence of a Notary Public. At this stage, the buyer pays the remaining purchase amount, and ownership is officially transferred.
Once signed, the buyer is granted full legal ownership, and the sale is complete.

Required Documents for Property Sale

To ensure a legal transfer, several essential documents are needed throughout the process:

Identification

DNI or NIE and Passport:
Spanish residents must present their DNI (National Identification Document), while non-residents must provide their NIE (Foreigner Identification Number) and a valid passport.
If Property is Owned by a Company:
Include the company’s deeds along with the DNI/NIE and passport of the legal representative.
Power of Attorney (if applicable):
Grants authorization for another individual to act on behalf of the property owner.

Property Ownership and Legal Records

Original Public Purchase Sale Deed (Escritura de compraventa):
This document records the initial sale of the property to the current owner.
Cadastral Certificate (Certificado Catastral):
Verifies the property’s registration, location, and dimensions.
Land Registry Certificate (Nota Simple):
Details the property’s legal status, including ownership and any existing encumbrances.

Compliance and Condition

Occupancy Certificate (Cédula de Habitabilidad):
Confirms the property meets habitability requirements.
Energy Performance Certificate (EPC):
Mandatory for all real estate transactions in Spain, this document assesses the property’s energy efficiency.

Financial Proofs

Latest Local Property Tax Receipt (IBI):
Proves that local property taxes are paid and up to date.
Latest Community Fees Receipt (if applicable):
Confirms payment of fees for properties that are part of a homeowners’ association.
Latest Utility Bills:
Shows all utility accounts are current and without arrears.

Additional Documents (if applicable)

Community Statutes:
Outlines regulations for properties within shared developments or communities.

At Lucas Fox, we are committed to providing a smooth, informed, and legally compliant property sale process. Our experienced team is here to guide you through every step, ensuring clarity and efficiency. To attract the right buyer and maximize your property’s potential, it is crucial to tailor your approach to Spain’s diverse market. Learn how to effectively market your property and make the selling process even more seamless.

Contact us today for personalized guidance and expert support in selling your property in Spain.