purchasing buying ibiza properties sale Ibiza
There are crucial rules to follow as you embark on purchase property in Ibiza :
•Choose your real estate agent in Ibiza carefully. This person will be the most important advisor in your property search in Ibiza. You will spend considerable time with this person for purchasing buying ibiza properties sale Ibiza.
•Before your property search in Ibiza get pre-approved for a mortgage with your bank. You can also use a mortgage broker. Then you would have a clear understanding of your budget. Your real estate agent in Ibiza can provide recommendations of trusted lender contacts.
•Educate yourself on the real estate market in Ibiza by speaking with your real estate agent in Ibiza. You should get an overview about property values in different areas of Ibiza. Take advantage of publicly available information to research prices of similar properties when purchasing buying ibiza properties sale Ibiza.
•Once you find a home in Ibiza you should arrange a due diligence on the property in Ibiza. Your real estate agent in Ibiza will help you in obtaining the relevant information.
•Build out your team wisely. It is recommendable to involve a local lawyer specialised in real estate Ibiza. He will represent you in the purchase of the property in Ibiza. Your real estate agent in Ibiza can provide recommendations of experienced professionals from whom you can choose.
STEPS OF PURCHASING BUYING IBIZA PROPERTIES SALE IBIZA
1. Reservation Agreement and Deposit :
The first step is a simple agreement signed by the buyer and the seller. This makes sure the property will be reserved. The buyer will pay a deposit to take the property off the market. During this period the lawyers can prepare the Option to purchase Contract. Also he can onfirm the legal postion of the property. If any irregularities are discovered during this process, the deposit would be returned to the buyer.
2. Option Contract :
When lawyers confirm that the property is legally in order, the buyer and the seller will sign the Private or Option Contract, in which the buyer usually pays 10% of the total agreed price of the property for sale in Ibiza. This contract is binding for both parties, so if the buyer withdrew from his offer the deposit would be forfeit.
3. Completion :
The last step when purchasing buying ibiza properties sale Ibiza is the Escritura Pública (deed of conveyance). This document has to be signed by both at the notary appointment. The buyer will pay the remaining balance of the agreed sales price and take possession of the property.
After this your lawyer and the notary will lodge the deed at the property registry. Then you will become the legal title of ownership of this property.
These steps are relatively simple and if all parties comply the the operation can be completed in a time of 3 -6 weeks. However, it is not unusual that this period is lengthened considerably, since not one property is the same as the other.
After purchasing buying ibiza properties sale Ibiza
Generally, your lawyer will deliver the deed to the Land Registry, change the services and municipal taxes in your name, aswell as the Property Tax (IBI) and garbage collection. If your purchase of a Ibiza property is within a community of house owners, normally there are community fees to pay. These vary depending on the community. We can recommend several professionals who can advise and help you if you need advices on taxes, licenses, financing or any other aspect of Ibiza .
Although the operation is finished we are at your disposal to provide necessary assistance and answer on any questions you may have in the future. Our success over the years is based on the satisfaction of our customers.
THE BUYING COSTS
The costs and taxes vary according to the final sales price:
The vast majority of homes on the market are resale property and a transfer tax applies for the following sections of sales price:
•Prices from 300,000 to 500,000 € are taxed with 8%
•Prices from 500,000 to 700,000 € are taxed with 9%
•Any price above 700,000 € is taxed with 10%
•New construction homes are subject to a 10% VAT plus a stamp duty of 1%.
•The VAT for plots, garages or commercial premises is 21%.
Notary and Land Registry fees
The costs of the notary and Land Registry are fixed according to the price of the property. In most cases the costs are shared with the seller.
Lawyer, processing agency and mortgage fees
Fees are subject to rates of each lawyer and can vary considerably from one lawyer to another.
Processing agencies normally governed by established prices.
In case of taking a mortgage, an arrangement fee of 1% of the advance is normally charged and they are taxed at around 1.5% of the advance.