First Of All

Are you really sure you want to sell? Do not let some temporary grievances induce you to take a decision that you may regret in the future. Consider this question very thoroughly. Even write down on a piece of paper the pros and cons of the sale of your property.

Current Trend

Over the last years, the property prices in Spain have been rising considerably, due to many buyers, both Spanish and foreigners. Today sales are going more slowly, and you may have some difficulties in finding a buyer willing to pay the price you ask.

The Sales Channels

Ways of Selling

If you have decided to sell, you have different ways of selling.

You may approach a sales agent and ask them to sell the property for you, you can advertise in local foreign language publications in Spain or you can advertise in the newspapers in your home country.

Sales Agent

If you want to use a sales agent, in Spain or in your home country, make sure that you do not sign any sales exclusivity, or papers with reference to rules or regulations not explicitly mentioned in the agreement. Otherwise, you may be forced to pay commissions to the agent even if he does not sell, while you find the buyer yourself. This is not unusual in the UK, either.

Get the sales commission established from the start, and put it in writing.  Many agents advertise on web sites such as this and pay a fee, there is however nothing stopping you from doing just that. The majority of overseas buyers see property on the internet, then fly out to view, they do not fly out and drive around looking for properrty.

Advertising In A Paper In Spain

If you advertise in a paper in Spain and you are not permanently living in your dwelling, you must arrange for someone you trust to have a set of keys, able to show the property to any interested client. Keen buyers may become disinterested if they have to wait for your next visit to Spain. You must also look at your "buyer" and where they may be coming from. By far the majority of buyers in Spain, are British and they sell to the British. It therefore seems obvious that it would be wise to advertise to the British, on an English written site and not to waste any time advertsing in "foriegn" publications not read by the British public.

Advertise In A Paper In Your Home Country

If you advertise in a paper in your home country, you must give brief information on the property and have some good photos to send to or show the interested buyer, together with a copy of your title deed and maybe even an evaluation of the value of the property. You should have investigated how you can travel with the interested buyer to visit the property, or how the buyer can get there alone, to be shown the property by someone with the key. Give the key to someone who can be trusted, and not to anyone you have not known for a long time.

Price And Conditions

Before meeting the first buyer, you must have decided on price and conditions for the sale. We have mentioned the possibility of discussing with a local real estate agent to get an idea on the price you can expect, or by having an evaluation done. We recommend you establish two sums in your mind: the asking price that should give room for negotiations with the buyer, including eventual sales commissions, and the bottom price that is the net you will want to receive for the property, under which you are not willing to sell. When you consider your asking price, one must consider the fees payable on selling your property. Estate agents charge anything from 3% to 8% in Spain.

Currency

You may fix the price in any currency you prefer. Maybe the best alternative is to do it in the currency of the country where you will be depositing the money and eventually use it. There are no legal or other obligations forcing you to establish the sales price in any specific currency. If payments are made in another currency, they will have to be calculated at the rate of exchange on the day they are being made, so that you can be sure to get the agreed value.

Selling Your Property Outside Spain

As a foreigner you can sell your Spanish property in any country outside Spain, fix the sales price in a foreign currency and receive the money abroad. You can even make a title deed (escritura) to the buyer stating that you have been paid in foreign currency and abroad. Foreign currency or Euros can be mentioned in the title deed.

However, Keep The Following In Mind

* if you use a Spanish general consul outside Spain as a notary, you must ensure the "primera copia" of the title deed is brought to the corresponding property register in Spain within 30 days. The consuls do not send the deeds to the property registers as a normal notary would. Some of the consuls refuse to make property escrituras, due to the obligations imposed by the new Notarial Rules.

* even if you make the sale and get the money abroad, your fiscal obligations to Spain in connection with the sale do not change.

Payment Terms

We recommend that you sell cash, unless as a resident, you should want to spread the income from the sale over several years for fiscal reasons. Payment terms make the matter complicated. You should not give title to the property in the buyers name before having received the total sales price. It is not wise to give the buyer, or his representative, a key and right of use of the property before he has paid completely. If he moves in and stops paying, you have to take him to court to get him out. On the other hand, the buyer may not have the full amount available, needing to sell another property or get a loan from the bank. He will want some guarantee for the deposit paid in the meantime.

Non-Returnable Deposit

On signing a private contract, you as the vendor, should insist on getting a non-returnable deposit of 5-10%, for taking the property off the market. This is normal. If the buyer is willing and able to pay a bigger amount when signing the contract, without this constituting the full price, the solution may be the following: The 5-10% non-returnable deposit is paid to you, while the rest of the money is paid into the clients account of a lawyer or a bank, with clear instructions that at the signing at the notary's office, when the rest of the total purchasing price and title deed is signed in the name of the buyer the money from the lawyer/bank account be paid to you.

New Notarial Rules

According to the new Notarial Rules, the notary now has the obligation to check the registration of the property being sold, before the signing of the deed. Additionally, he must fax the new title deed immediately to the property register. If your property belongs to a Community of Owners, you must have the secretary/administrator prepare a certificate that there are no outstanding debts. This is good legislation, and vendor and buyer should make the notaries comply with their obligations.

Proposal For A Private Sales/Purchasing Contract

To this Short Information we include a proposal for a private sales/purchasing contract, fair for both vendor and buyer. However, one contract form cannot cover all types of circumstances, so it is only a basis for you and must be adjusted to your particular situation.