The Big Four
How to buy property in Italy, France, Spain and the United Kingdom.
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After the notary has checked for any encumbrances upon the property, parties sign the final contract, the deeds pass to the buyer and the land registry is updated. The balance of the purchase price is paid to the notary, who in turn pays the seller. Associated costs include notary fees (2 to 2.5 percent), property purchase tax and registration costs (4.5 percent). The seller generally pays the broker’s commission, which is around 5 percent.SPAIN
Lured by the guaranteed sunshine and the amount of bang they
could
get for their bucks, English and Scandinavian shoppers have been
snapping
up villas and condos on Costa del Sol for years.
Unfortunately,
haphaz-
ard development and poor construction have
turned sections
of the
coast, once the cavorting grounds of
Euro-royalty, into a
high-rise
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La Masía, a 12th-century estate located an
hour outside Barcelona, is outfitted with furniture and paintings from the
17th through the 19th centuries. (Click image to enlarge)
However, other parts of Spain—possibly the European country
presently boasting the most exciting innovations in
architecture, food
and
design—still offers interesting
investment opportunities. Valencia,
with its
dramatic City of
Arts and Sciences, designed by native son
Santiago Calatrava,
has recently become even more popular since the
announcement
that it will host
the 2007 America’s Cup. Midway down the
coast and equidistant from Madrid and
Barcelona, the coastal
city lies
opposite the trendy Balearic Islands of Ibiza
and
Mallorca. (Click image to enlarge)
Adventurers are discovering the Alpujarra region, between Granada and the southern coast, where quaint mountain villages enjoy a year-round micro-climate and lushness due to the constantly melting snow atop the surrounding Sierra Nevada.
Once you have found your finca in Andalusia or your cabin on the Guadalquivir, the first thing your lawyer will do is check the Spanish Land Registry for the exact lot size, any outstanding mortgages and the title holder, the only one with the right to sell the property.
Prior to your signing the binding sales agreement, which sets
forth
the terms of the purchase, and paying a 10 percent deposit, your lawyer
will check habitation permission, payment of past property taxes and
possible
existing rental contracts. If you withdraw from the
purchase
after signing, you
lose your deposit. If the seller
reneges, it is not
unusual for him to pay twice
the amount of
the deposit, depending on
the wording of the agreement. The sales
agreement is signed before a
notary in the form of a public
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A modern villa in Altea has views of the
Mediterranean. Both properties are available through Christie’s Great Estates
for $11.47 million and $4.43 million, respectively. (Click image to enlarge)
Additional costs to the buyer are approximately 10 percent of
the
purchase price, including property transfer tax (7 percent), stamp duty
(1
percent), and property registration and notary fees, which are
calculated
according to the price of the property. Broker
commissions,
paid by the seller,
are generally 4 to 6 percent.
When buying a new
home from a developer, the
buyer receives a
deed of declaration of new
construction, an occupancy permit
and a certificate stating the
property value.
