When buying a flat you should be given three measurements: living area, total build area of the property, and of the surrounding community areas. The client is actually paying for the build area of the property, plus the adjoining communal areas (doors, stairs, gardens, etc) which belong to the flat. For this reason the living area is always smaller than what the client pays for, as it isn’t just space that is purchased but also construction, for the flat as well as the communal areas.
The law (57/1968) states that the developer, via a financial or insurance company, guarantees deposits paid by clients, prior to the handing over of their property. This means that if the developer doesn’t complete the work, the client has the right to use this guarantee.
As a general rule, Article 142 of the Notary Regulations assigns the right to choose a notary to “whoever pays the registry fee”. As estate agencies and financial institutions pass the costs of the title deeds to the client, it is clear that the right to choose a notary is down to the client.
Obtaining a mortgage usually incurs the following costs: notary, registration of the property, gestoria (spanish accountant/management service which deals with all the paperwork involved),valuation, bank charges, transfer tax and stamp duty.
It is a commercial valuation carried out by an independant surveyor on the property, on a particular date. Banks and financial institutions use it as a reference when approving a mortgage.
Recent wage or VAT slips, last tax return, purchase contract, the search carried out on property’s land registry report and the last property tax receipt.
It is a direct tax on the land value of the property, undertaken by the local town council on an annual basis. Up to now properties in Sotogrande Marina haven’t been registered in the catastro therefore the local rates have not been issued yet.
Sotogrande is made up of various different communities. There are two different communities in the Marina. Security, gardening, lighting and water consumption is dealt with by Sotogrande S.A. along with internal features such as cleaning, electric consumption proportionate to the area, internal swimming pools and gardens. In the port the community is dealt with by the local port authorities whose offices are located in the control tower. This community includes security, water, gardening of the comunal areas and terraces. The areas with villas are divided into two parts, Park 1 and Park 2. Both are managed by the offices in Paniagua, and include security, street lighting and gardening of the comunal areas.
The developer has an obligation to inform the council once work on the property has completed. Council technicians will then revise the completed property and determine if it complies or not with the rules and requisites in order to live there. It is advisable that before obtaining the title deeds for the property the client has this license.
Value Added Tax is 7% on properties and 16% on offices/premises, parking spaces and storerooms (if it is not all bought as one with a house). VAT is also 16% for renting properties.
There is a consensus in Sotogrande for which the estate agents fees are 5% of the purchase price. Normally this commission is included in the sales price and will be paid by the buyer on signing the contract of the house.
