Buyer's information and relevant links

To buy a house or a property in Menorca is in fact very straight forward even when there is a mortgage involved and the client lives away from the island. Once a suitable property has been found a private contract is drawn up between both parties by our company lawyer and a date set for the exchanging of contracts before the Public Notary. Please note that in Spain, the Public Notary is the only person who can officially sign the property over, unlike in England where this is carried out by lawyers. As soon as this private contract has been agreed and signed, a 'nota registral' is ordered from the land registry office to confirm that the property is in the name of the vendors. It is also here that any mortgages are registered so arrangements can be made with the bank in question for the cancellation of this debt before the property is signed over to the new owners. The Notary will not allow a property to be signed over unless this cancellation has been doneo or the purchasers have an agreement to take over the existing mortgage with its conditions. For more details on this please look at our section on mortgages.

The purchase costs in Spain are considerably higher than in the UK, Stamp Duty in fact being 7% of the deed price and the Notary and Registrar fees being about 1% of the deed price. It is important that these amounts are calculated as they obviously affect the budget considerably. If a mortgage is taken, a bank will also charge a small commission and there is another bill for the Notary to sign the mortgage deeds. In this scenario a further 2% needs to be budgeted for to cover these costs. On the signing of the private contract it is normal for a buyer to pay a deposit of 10% of the agreed price. Spanish law states that if a purchaser then pulls out of the deal they lose their deposit and if a vendor decides not to go ahead they must return the deposit and an equal amount in compensation, i.e. double the original deposit. This prevents the situation of gazumping.

Although this process may sound complicated, each stage is explained fully to all clients and numbers calculated once a property has been found. The whole process is actually very straightforward and completion can take place in a matter of weeks, depending on clients' circumstances.