Buying a property in Spain is a major undertaking, whether you intend to make it your home, enjoy a second residence or invest. Before taking this step, however, it is important to understand the requirements. The process begins with budgeting, arranging a mortgage, preparing the contract and signing before a notary. Finally, you will need to pay the relevant taxes and register the property.
This guide explains the steps involved in buying a property in Spain, the costs and taxes you should budget for, and practical advice drawn from our experience. You will also find information on preparing for the purchase if you are buying from abroad.
💡 Preparing each stage in advance allows you to negotiate with more information and avoid mistakes.
An active property market in Spain
According to the INE, 714,237 residential property sales were registered in 2025, an increase of 11.5% compared with 2024. Of these, 558,327 involved resale properties, representing 78.2% of the total, while 155,910 involved new homes. These are provisional annual figures published in February 2026. Meanwhile, the Spanish Association of Registrars reported that foreign buyers accounted for 13.82% of purchases in 2025, although this includes foreign nationals who live and pay taxes in Spain. The proportion reached 43.29% in Alicante and 32.8% in Málaga. In such an active market, having the right information helps you make better decisions. Alongside comparing prices for similar properties, you should familiarise yourself with the areas, the differences between autonomous communities and the costs involved, as all these factors affect the purchase.
Before buying, define your plans and calculate your budget
The advertised price is only part of the outlay. Your budget must also include taxes, the applicable transaction costs, any services you engage and, where relevant, the valuation, bank charges and renovation work. You need to distinguish between the purchase price, the amount the bank will lend and the savings you will contribute. The deposit paid under an arras agreement is usually deducted from the price; it is not an additional cost to count twice. The examples below show how these elements affect the calculation. If you need to sell a property first to finance the purchase, you should coordinate both transactions. Our guide to selling a property in Belgium will help you prepare for that first stage.
💡 Before viewing properties, also decide how you intend to use them. If you plan to let the property, renovate it or use it for professional activities, check that the intended use is permitted and that the necessary authorisations are in place.
💡 Practical tip: View the property once, then return at a different time of day. Check the noise, natural light, access and condition of the communal areas. Take a checklist and ask permission to photograph any details that need further inspection.
If you need financing, you should coordinate it with the purchase agreement. This section explains how to prepare the documentation, compare offers, calculate the savings required, protect your deposit and prepare for signing. If you are buying with your own funds, you can go straight to the documentation section.
How much can you borrow and how much do you need in savings?
Before making any commitment concerning a property, we recommend asking the bank to assess your financial position. This assessment will help you focus your search on properties that match your income and available capital. A favourable assessment is useful for planning, but it does not amount to final loan approval.
We suggest preparing the required documentation in advance: proof of income, tax returns and evidence of your own funds. If you live or work outside Spain, you will need to check the bank’s criteria and its requirements for translating foreign documents, as explained below.
Buying property in Spain with a mortgage
To compare mortgages, you need to assess the total cost. Although the APRC (Annual Percentage Rate of Charge, known in Spain as TAE) is the best indicator for comparing financing, you should also examine fees, insurance and other linked products. We recommend asking the bank for different illustrations to see how repayments would fit your finances if your income changed or, if you choose a variable-rate loan, how they would change if interest rates rose. The portion of the price not covered by the mortgage, together with taxes and other costs, must be paid from your own funds or through alternative financing.
Practical example
For illustration, consider the purchase of a resale property in Andalusia:
| Item | Amount |
|---|---|
| Purchase price | €300,000 |
| Approved bank financing | €240,000 |
| Tax payable: property transfer tax (ITP) at the standard rate of 7% | €21,000 |
| Minimum contribution from your own funds | To be negotiated with the bank |
Notarial fees, Land Registry fees and other transaction costs must be added to this figure. If you have already paid a deposit under an arras agreement, you will need to provide the remaining balance, together with those costs, on the signing date. If the bank approves a lower loan amount, your contribution will therefore need to be higher.
💡 Practical recommendation: Ask your bank for a written estimate of the amount it could lend and use that document to plan your budget. If the purchase is only viable with the maximum financing, always prepare a “plan B” by calculating what would happen if the formal valuation or the bank’s final offer were lower.
What happens if the bank refuses the mortgage?
The safest way to protect yourself is to expressly set out in writing what happens if financing is not obtained. This includes specifying in the arras agreement the loan amount, the deadline for applying, the consequences of a refusal and the conditions for recovering the advance payments (“arras”). The rules are not the same throughout Spain: in certain cases, buyers may withdraw from the purchase if the bank refuses the mortgage and they have not acted negligently, provided the requirements are met and the parties have not agreed otherwise.
💡 Our advice: Before signing and paying the deposit, define what “obtaining sufficient financing” means. Specify the minimum amount required, the deadline for securing it and the documents that will serve as evidence of the bank’s refusal. This clause provides certainty and protects the transaction.
Documentation and what to prepare in advance
An estate agency can help you find a property. Check whom it represents, what services it provides, who pays its fees and when they are payable. Ask for any commission to be confirmed in writing. Having your documents ready will also allow you to move forward more quickly once you find the home you want. We suggest gathering the following information, while always confirming the requirements with the notary’s office:
- Official identification: Spanish citizens will need their national identity card (DNI). Foreign nationals will need a passport and Spanish tax identification through their foreigner identification number (NIE).
- Marital status and matrimonial property regime: Certificates, marital property agreements or other documents may be needed to establish who is acquiring the property and on what terms.
- Bank transfers: The transfer of the purchase funds must be evidenced by bank statements. The account may be held abroad, but the account holder must be the buyer.
- Bank documentation (if a mortgage is required): If you are financing the purchase, gather the bank documentation, including proof of income, records of financial commitments and any other information the lender requires.
- Notarial power of attorney (if a representative will sign): If you act through a representative, you must grant a power of attorney authorising the steps involved in the purchase.
💡 The NIE identifies foreign nationals in their dealings with Spain; it does not grant a right of residence. If you do not yet have one, we urge you to start the process in advance and check the applicable police or consular procedure.
If you live in Belgium, our guide to procedures at the Spanish Consulate in Brussels will help you prepare. An international transfer may require additional checks. Do not wait until the signing date to check your transfer limits.
💡 Regarding transfers, Spanish notaries’ offices do not operate in the same way as Belgian or Dutch offices and do not receive funds. The purchase price is usually paid in one of two ways: by a banker’s draft issued by a Spanish bank, payable to the seller or their authorised representative, or by bank transfer to the seller or their authorised representative. In the latter case, the funds must be received before the deeds are signed. We always recommend requesting a bank certificate confirming ownership of the seller’s account or, where applicable, the client account held by the seller’s lawyer.
What to check before the purchase
Before paying a reservation deposit or committing to buying property in Spain, check the charges affecting the property and whether the documentation reflects its actual condition and circumstances.
Ownership and registered charges
It is advisable to obtain a nota simple (Land Registry extract) to check the property, its ownership and any mortgages, attachments, usufruct rights, easements or other restrictions. You should also confirm whether the garage and storage room form part of the home or are separately registered properties. If there is a mortgage, it must first be repaid and removed from the Land Registry. The contract should specify who will handle the procedures and bear the costs and, where appropriate, the amount to be withheld from the price to ensure its discharge.
Cadastral records and planning status
It is also essential to check the information in the deeds, the Land Registry and the Cadastre. If the property includes an extension, swimming pool or terrace, its status must be checked to establish whether it has been regularised. The cadastral reference identifies the property but does not, by itself, guarantee compliance with planning law. Depending on the type of property, you will need to check permits, authorised uses and planning obligations with the local council. These checks must be particularly thorough for rural land, coastal areas or protected buildings. If there are discrepancies, request documented explanations and decide whether the seller must resolve them before the purchase or whether express safeguards should be included in the contract, allowing you to withdraw from the purchase.
Owners’ association and condition of the building
We recommend requesting a certificate of outstanding debts to the owners’ association. These documents often reveal undisclosed special assessments, future works, structural defects or disputes that are not reflected in the monthly charge.
💡 Our advice: Request the latest meeting minutes and ask about the condition of the lift, façade and roof, as well as any outstanding works. A low monthly charge can still be accompanied by a substantial special assessment in the near future.
Under the horizontal property act, the property is liable for certain debts to the owners’ association relating to the year of purchase and the three preceding calendar years.
Document checklist
The following list will help you organise your review. Whether each document is required will depend on the property and its location:
- Title deed and documentation relating to the sellers or their representatives.
- An up-to-date Land Registry extract and documents discharging any charges, where applicable.
- Cadastral information.
- The property tax (IBI) bill and details of municipal debts.
- A certificate of debts to the owners’ association, meeting minutes and special assessments.
- An energy performance certificate and evidence of its registration, unless an exemption applies.
- A habitability certificate, occupancy licence or equivalent document, where required.
- Building permits, technical documentation for the building and the tenancy agreement, if any.
If a document is missing, establish how it will be obtained and what the consequences will be before making a commitment.
📝 Have you received a reservation agreement or an arras deposit agreement? Before you sign, we can review the documentation, identify the risks and help you negotiate the terms of the purchase. Send us the property listing and draft agreement for an assessment.
Taxes when buying a property in Spain
The main distinction to understand is the difference between a resale property and the first sale of a home by the developer. A renovated property, or one that the buyer has never occupied, is not necessarily taxed under the rules for new homes.
Resale properties and property transfer tax
Buying a home in Spain from a private individual is generally subject to property transfer tax on transfers for consideration, a category within ITPAJD, the Spanish tax on property transfers and documented legal acts. This is a state tax devolved to the autonomous communities, with the relevant community responsible for its administration and rates. The buyer must calculate and declare the tax to the regional tax authority where the property is located. The legislation provides for reduced rates and tax relief depending on age, disability, family circumstances, the property’s value or its use as a main residence.
Reference value may increase the taxable base
For properties with a cadastral reference value, ITP is not always calculated on the agreed price. Where the reference value, purchase price and declared value differ, the highest of these figures is generally used.
💡 Practical example: Imagine you buy a house in Andalusia for €280,000, but its reference value is €310,000. At the standard rate of 7%, ITP would amount to €21,700 rather than €19,600. We recommend checking the reference value before completing the purchase.
New homes, VAT and stamp duty (AJD)
On the first sale of a home by the developer, the buyer generally pays VAT at 10%. Certain officially protected or publicly developed homes qualify for a super-reduced rate of 4%. In addition, signing the deed may be subject to stamp duty (AJD), whose rate also varies by region. In Andalusia, for example, the standard AJD rate is 1.2%. AJD on the purchase must not be confused with AJD on the mortgage loan.
Comparison by autonomous community
The property’s location determines which regional tax rules apply to the purchase. You cannot choose where to pay simply because you hold a bank account there or sign at a different notary’s office. Below, we compare the purchase of a home in Barcelona, Málaga, Madrid, Mallorca and Alicante, calculating the hypothetical taxes. This comparison covers an ordinary purchase by an individual, without tax relief, using the rates applicable in October 2026. The new-home column refers to a first sale by the developer, with a deed subject to AJD.
| Autonomous community | Resale property: ITP | New home: indirect tax + AJD |
|---|---|---|
| Catalonia | Progressive rates from 10% to 13% | VAT 10% + AJD 1.5% |
| Andalusia | 7% | VAT 10% + AJD 1.2% |
| Madrid | 6% | VAT 10% + AJD 0.4%, 0.5% or 0.75%, depending on value |
| Balearic Islands | Progressive rates from 8% to 13% | VAT 10% + AJD 1.5%; 2% from €1,000,000 |
| Valencian Community | 9%; 11% if the value exceeds €1,000,000 | VAT 10% + standard AJD 1.4% |
| Canary Islands | 6.5% | Standard IGIC 7% + AJD 1% |
Catalonia, progressive Rates
In Catalonia, the standard ITP rate is not fixed but calculated in bands: 10% on the first €600,000; 11% on the portion between €600,000 and €900,000; 12% between €900,000 and €1,500,000; and 13% on the excess.
💡 For example, if the taxable base is €800,000, the standard tax liability would be €82,000: €60,000 on the first €600,000 and €22,000 on the remaining €200,000. These definitions and exceptions must be examined carefully, as the standard scale does not apply to every investment.
Andalusia and madrid, lower standard rates
If you are looking for a second home on the Costa del Sol, the Costa de la Luz or in Almería, Andalusia’s standard ITP rate is 7%, while the standard AJD rate applicable to the purchase is 1.2%. Various tax benefits are available, subject to personal, financial and property-use requirements. In Madrid, the standard ITP rate is 6%. For deeds recording the purchase of a home by an individual, AJD applies as follows: 0.4% up to €120,000; 0.5% where the value exceeds €120,000 but does not exceed €180,000; and 0.75% above €180,000.
Balearic Islands
In Mallorca, Menorca, Ibiza and Formentera, the standard ITP scale also operates in bands: 8% up to €400,000; 9% between €400,000 and €600,000; 10% between €600,000 and €1,000,000; 12% between €1,000,000 and €2,000,000; and 13% on the excess.
For a taxable base of €800,000, standard ITP would therefore amount to €70,000: €32,000 + €18,000 + €20,000. When buying a new home, the standard AJD rate is 1.5%, increasing to 2% for property transfers valued at €1 million or more.
Canary Islands, IGIC instead of VAT
In the Canary Islands, resale homes are generally subject to ITP at 6.5%. For the first sale of a home, the applicable reference is the standard 7% Canary Islands General Indirect Tax (IGIC), instead of mainland VAT, plus the 1% AJD rate for transactions subject to IGIC.
The following example is hypothetical: an individual buys full ownership of a second home, with a taxable base of €300,000 for all taxes and no tax relief or special circumstances. Only acquisition taxes are compared; notarial fees, Land Registry fees, financing and professional services are excluded.
How taxes differ on a €300,000 home
| Autonomous community | Taxes on a first home | Taxes on a second home |
|---|---|---|
| Catalonia | €30,000 ITP | €34,500 VAT + AJD |
| Andalusia | €21,000 ITP | €33,600 VAT + AJD |
| Madrid | €18,000 ITP | €32,250 VAT + AJD |
| Balearic Islands | €24,000 ITP | €34,500 VAT + AJD |
| Valencian Community | €27,000 ITP | €34,200 VAT + AJD |
| Canary Islands | €19,500 ITP | €24,000 IGIC + AJD |
In this example, buying the resale property in Catalonia entails €12,000 more in ITP than buying it in Madrid. It is therefore worth calculating the property’s taxes before negotiating the price.
💡 Practical tip: Request an estimate that separates the price, taxable base, taxes, purchase costs and mortgage costs.
Tax filing deadlines
Tax deadlines vary. Madrid allows 30 working days for property transfer tax (TPO). In Andalusia, the general deadline is two months from the day after the tax liability arises. Municipal tax on the increase in urban land value, known as plusvalía municipal, is normally payable by the seller. Also check for outstanding property tax (IBI) and local charges. IBI accrues on 1 January, and its allocation for the year of sale is expressly agreed between the parties.
Signing the purchase deed before a Notary in Spain
Signing is the point at which you formalise what you have prepared and negotiated. To ensure the terms are clear, request a draft deed in advance. Check the buyers and their ownership shares, the property description, price, advance payments, payment methods, charges, possession arrangements and allocation of costs. If you are buying with someone else, you should also agree how funds will be contributed and what will happen if either of you later wishes to sell their share.
The notary checks the legal requirements for executing the deed, informs the parties and records their statements and payments. The notary’s involvement does not replace a physical inspection or, by itself, guarantee that a proposed renovation or use of the property is viable.
Who pays the notarial fees and other costs?
By law, the notarial fees for executing the deed are payable by the seller, unless otherwise agreed. The buyer, meanwhile, must cover the costs of their mortgage, copies of the deed and registration.
The signing date
Before completing the purchase, personally check that the property is in the agreed condition and coordinate the handover of the keys, which should ideally take place when the deed is signed. If the seller needs to postpone the handover, it is important to record the exact departure date, who will be responsible for any damage or costs during that period, and what safeguards apply in the event of a breach. All payments of the purchase price should be checked with the notary’s office, and supporting records should always be retained.
💡 Practical tip: Arrange a final viewing before signing. Record the meter readings and agree how you will receive all keys and remote controls. Put any defects or outstanding handover items in writing.
Buying a home in Spain as a foreign national or non-resident
As a general rule, a foreign national can buy a home in Spain without living there. However, nationality, tax residence and permission to live in the country are different matters. Understanding these distinctions from the outset helps you organise the purchase and anticipate your obligations.
Buying a home does not make you a resident
The NIE identifies foreign nationals before the Spanish authorities, but does not itself grant a residence permit. Tax residence criteria include spending more than 183 days in Spain during the calendar year or having the main centre of your activities or economic interests in Spain.
💡 For example, someone who lives and works in Belgium and uses a house in Málaga for holidays may remain non-resident in Spain for tax purposes. If they later move, change their activities or reorganise their family life, they should review their position.
The route for new investor residence applications, known as the “golden visa”, was also abolished from 3 April 2025. Buying a property now, even one of substantial value, does not provide access to that scheme through the investment alone. Where the purchase involves several countries, the buyer’s family and asset arrangements should also be examined. At Arthur & Marin, we provide international legal advice to help you anticipate these matters before committing to the transaction. If you are a Belgian citizen and the purchase is part of a relocation plan, you can consult our guide to living in Spain as a Belgian citizen, which covers other practical matters to arrange before moving.
Documents to prepare
- A valid passport or identity document and an NIE for each foreign buyer. Check in advance how to obtain the NIE in Spain or through the relevant consular office.
- Your address and tax details in your country of residence, together with a tax residence certificate where necessary to prove your status or obtain the applicable tax treatment.
- Documents establishing your marital status and matrimonial property regime. Depending on the circumstances, certificates, marital property agreements or other documents may be needed to establish how the property will be acquired.
- Proof of income, savings and the source of funds: tax returns, bank statements, payslips or documents relating to a sale, inheritance or gift.
- A power of attorney, if someone else will act on your behalf, reviewed by the notary’s office handling the transaction.
- Translations and apostilles or legalisation, where required. The requirements depend on the document, its country of origin and the applicable rules; not all foreign documents are treated in the same way.
💡 If you will be receiving financial assistance, consider how to document it before transferring the money. Our article on making a donation in Belgium to buy a home in Spain explains the tax and documentation issues to consider.
How does a notarial power of attorney work?
A power of attorney may be granted before a Spanish notary, a Spanish consul exercising notarial functions or a foreign notary, subject to the requirements for it to take effect in Spain. It should specify the authority to sign the arras agreement and purchase deed, handle taxes and arrange registration.
💡 Practical tip: Before arranging an appointment to grant a power of attorney abroad, send the draft to the Spanish notary’s office and, if a loan is involved, to the bank.
If you will sign in person but do not understand the language sufficiently, inform the notary’s office so that a translation or an interpreter can be arranged.
If you need financing as a non-resident
As a foreign buyer, you have two main options for financing the purchase: borrowing in your home country, either by remortgaging an existing property or taking out a personal loan, or applying directly for a mortgage with a local bank in Spain.
Banks in Spain generally finance a maximum of between 60% and 70% of the purchase price or valuation. Before granting approval, the bank will assess your profile based on your income. It may request documents such as your credit history, tax returns and payslips, generally requiring a sworn translation and a Hague Apostille. You will also be required to open a bank account in Spain.
💡 Since the bank will lend a maximum of 70% and purchase costs amount to an additional 10–15%, you will need available funds of approximately 40–45% of the property’s total value.
💡 You may consider using a mortgage broker, as they know which banks offer the best terms and can save you time and help overcome obstacles.
Obligations to check in advance
There may also be investment reporting obligations. Purchases by non-residents of properties in Spain exceeding €500,000 per property must be declared using Form D-2A, generally within one month of the investment. This declaration is separate from paying the purchase taxes and does not grant residence.
What taxes do non-residents pay?
As the owner of a home in Spain, each year you will need to pay property tax (IBI), local municipal charges and Non-Resident Income Tax (IRNR). The Spanish tax authorities require tax to be paid on property ownership even where no rent is received, through what is known as imputed income. To calculate it, 1.1% or 2% of the property’s cadastral value is taken, and IRNR is applied to that amount. For example, if you live in Belgium and own a home in Spain for personal use with a cadastral value of €100,000, the taxable base would be €1,100. Applying the 19% rate for European residents would result in annual tax of €209. This amount is adjusted for the number of days and each owner’s share.
If you rent out the property, you must pay tax on the rental income. The rate is 19% if you reside in the European Union (EU) or the European Economic Area (EEA), rising to 24% for residents of other countries. If you are considering holiday letting, you must also check the rules of the municipality, autonomous community and owners’ association. All these taxes are declared to the Spanish tax authorities using Form 210. Filing deadlines vary according to the source of income.
💡 For example, the tax return for a property left vacant or used personally throughout 2026, based on imputed income, must be filed between 1 April and 31 December 2027.
Wealth, country of residence and future inheritance
For high-value purchases, it is essential to assess your position regarding wealth tax and, where applicable, the temporary solidarity tax on large fortunes. Being non-resident in Spain does not exempt you from these tax obligations. Your country of habitual residence may also require you to report the newly acquired property in Spain or the income it generates. This is where the Double Taxation Agreement (DTA) comes into play, mitigating double taxation through an exemption or a tax credit, which allows you to offset tax already paid in Spain against tax due in your home country.
💡 Although a double taxation agreement prevents duplicate taxation, it does not remove the legal obligation to submit information returns or tax returns in both countries.
Our guide to how inheritance works in Spain will help you become familiar with the inheritance and tax issues to consider, particularly if your assets are spread across several countries.
Examples of home purchases in Spain and how we help
These examples illustrate how location, price, financing and the parties’ tax residence affect buying property in Spain. The calculations are hypothetical.
1. A belgian couple buys a second home in Málaga
A Belgian couple, resident in Belgium for tax purposes, buys a resale home from a Spanish owner resident in Spain. Applying Andalusia’s standard ITP rate of 7%, they would pay €17,500 in tax, bringing the price and this tax to €267,500. We also review the property, prepare their NIE applications and arrange for signing without their travelling to Spain. We anticipate their tax obligations as non-resident owners. Finally, we review the documentation and the arras agreement, coordinate the power of attorney with the notary’s office and help organise the purchase formalities. Do you live in Belgium and have a similar purchase in mind?
2. A french buyer purchases a new home in Madrid
A French citizen living in Spain buys directly from a developer and needs a mortgage. On a first sale, VAT at 10% would amount to €40,000 and AJD at 0.75% to €3,000, bringing the price and taxes to €443,000. As she is buying off-plan, we review the guarantees for advance payments, the specifications and the delivery deadline. In this case, we also review the developer’s contract, negotiate the financing-related terms and check the guarantees and documentation required for the handover.
3. A Spanish buyer purchases a flat in Barcelona from a british seller
The buyer lives in Spain, while the seller is resident in the United Kingdom for tax purposes. As the flat is in Barcelona, ITP would amount to €71,000: €60,000 on the first €600,000 and €11,000 on the remaining €100,000. In addition, because the sale is made by a non-resident under the ordinary Non-Resident Income Tax (IRNR) rules, the buyer must withhold €21,000—3% of the price—and pay it to the tax authorities using Form 211. This amount is deducted from the payment to the seller; it is not added to the price. The determining factor is the seller’s tax residence. In this situation, we verify the seller’s tax status, arrange the withholding and also review the obligations relating to municipal tax on the increase in urban land value (plusvalía municipal).
4. A german buyer looks for a home in Mallorca to rent out
A German citizen, resident in Germany for tax purposes, buys a resale home from an Italian owner who is resident in Spain for tax purposes. Standard Balearic ITP would amount to €114,000, applying the successive bands of 8%, 9%, 10% and 12%. The price and this tax would total €1,314,000, with the property valued at €1,200,000. Her intention was to use it for holiday letting. The seller’s Italian nationality does not, by itself, trigger the 3% withholding requirement; her tax residence must be verified. In this case, we review the property’s legal status and the conditions for its intended use, coordinate the administrative checks and examine the tax and foreign investment obligations.
We help you buy a home in Spain
At Arthur & Marin, we help review documentation and contracts, identify matters requiring checks and establish the terms before signing. If you already have a property in mind, send us the listing or address, the price and any proposed reservation or arras agreement. You do not need to wait until you have a complete file before contacting us: the first step may be to identify what information is missing.
Contact Arthur & Marin by email at info@arthurmarin.com or by telephone on +32 465 345 345 before paying a deposit, and prepare your purchase with clear terms from the outset.
Legal notice: This guide provides general information. The appropriate solution depends on the location, property, parties and applicable legislation.
Frequently Asked Questions (FAQs) before buying a property in Spain
Is signing an arras agreement compulsory?
No. You can proceed directly to signing the deed if the transaction is ready. If a reservation or preliminary agreement is used, the essential point is to understand its effects before signing.
Does the arras deposit have to be 10%?
There is no generally mandatory percentage. The amount is negotiated and should be assessed in light of the risks, timeframe and refund conditions.
Can you buy a house with an outstanding mortgage?
Yes, but arrangements must be made to discharge it or for the buyer to take over the mortgage with the necessary consent. The buyer should not confuse the outstanding loan balance with the removal of the registered mortgage charge.
Is it compulsory to use a Notary?
A sale may be effective between the parties through a private contract if it meets the legal requirements. However, a public deed is the usual route to registration in the Land Registry and is necessary to formalise a mortgage that can be registered. Proceeding without it leaves essential safeguards for the transaction incomplete.
How long does buying take?
There is no single timeframe. It depends on financing, charges, documentation and the parties’ availability. For planning purposes, request a specific schedule identifying who is responsible for each step and any outstanding conditions. If you are buying off-plan, the timeframe will also depend on construction and handover.
Can I recover the reservation deposit if problems arise?
It depends on the contract, the problem and the applicable law. It is preferable to expressly provide for a refund if the review reveals an unaccepted charge, a material irregularity or an inability to obtain financing covered by the agreement.
Can I rent out the property immediately?
You must check the conditions and requirements for the intended letting. Residential tenancies and holiday lets are subject to different rules; ownership does not automatically authorise every use.
