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Buying a property in Spain. Settling the costs of buying a home

Buying a home involves a series of costs for the buyer, and sometimes you are not quite sure why they must be paid or to whom. They make the initial outlay you must make to buy a home considerably larger.

Who do I have to pay?

  • Pay the seller the price of the home. If you paid a sum on account or a deposit before making the notarial deed, subtract that sum from the price you have to pay when you sign the purchase agreement. It may be that you signed an agreement securing the safe conclusion of the sale (contrato de arras) and turned in a sum to the seller as security. If so, subtract that sum from the price payable when you sign the notarial deed. Remember that if you decide not to buy after all, you will lose the money you put up as security. If the seller decides not to go through with the deal, he or she must give back twice the sum you put up as security.
  • Pay the estate agency. Remember that the person who ought to pay the estate agency for its services is the person who engaged it. Therefore, if it is the seller who engaged the agency (as generally happens), the agency can only present its claims for payment to the seller, never the buyer.
  • Pay the notary. The notary will charge fees according to an official schedule, for authorising the deed of purchase and the mortgage loan deed. It is important for you to know that by law the seller has to pay the fees for the authorisation of the deed and the buyer has to pay the fees for the copies of the deed. The buyer only has to pay all notarial fees if buyer and seller have expressly agreed to that arrangement. The amount of fees is established by the regulation schedule or list of notarial fees. Pay administrative agents the cost of their services, if you have engaged any to take care of paperwork for you. It is very important to insist that your agent show you the original bills issued by the notary and the registrar and the tax receipt, so that you will know how much you have paid for each service.
  • Pay the property registrar the fees charged for drawing up the entry of your right and, if you have agreed to this, the fees charged for registering the mortgage. The registrar’s fees are established by a regulation schedule or list, which is available to all users at each registration office. Before making any payments, demand to see the bills and make sure they include a breakdown into the component charges, the VAT, and the identity and identification number of the person or company that issued the bill. In the case of bills from notaries and registrars, if you do not agree with the items or sums you are being charged, you may file an appeal according to the instructions in the rules establishing the fee Schedule.

Source. How to buy a home in Spain