Whether you are looking at purchasing a property for your own private use or as part of an investment strategy, Barcelona Flat Hunter is here to ease the whole process. You will find in this section a detailed description of each of the steps required to buy real estate in Barcelona and how we will make it a hassle-free experience.
EVERY PROJECT IS UNIQUE, BUT THEY ALL START WITH ONE THING: WE WANT TO KNOW EVERYTHING. If you haven’t done so yet, feel free to fill out our Property Search Form, for a free consultation with one of our Barcelona Flat Hunter experts.
This consultation would allow to:
1. Validate your search: your expectations & budget versus real estate market in Barcelona.
2. Define the extent of the support needed: at Barcelona Flat Hunter we do not believe in “one package suits everyone”. Each client is unique and as such should only be charged for the services he actually needs. Whether you wish to get a full support throughout from the search to the purchase, or have already identified the potential property but wish to be assisted moving further, Barcelona Flat Hunter places its expertise to your service.
3. Answer your questions: from general explanation on the purchasing & financing process to the market characteristics, real estate prices in Barcelona and trends, we are here to answer your questions.
4. Validate your financial plan: once the ideal property has been defined we will review together the financial structure of your future purchase. Should financing be needed, banks/brookers will be approached to ensure you get the adequate financing.
GOOD TO KNOW >>> Making an offer on a Spanish property is usually done in writing & it requires in most cases a down payment of 1% of the offered price, This written offer is then presented to the seller so that they can study it and respond. If the offer is accepted, the 1% is considered as a first down payment, if it is refused then the amount is refunded entirely by the seller agency. Lastly, if your offer is accepted but you change your mind, you would lose this deposit, it is thus essential to ensure all aspects of the future purchase are addressed in writting within the offer document.
Picture on hand, we do all the groundwork, from sharing your search with our extensive network to monitoring proporties published online and going through pre-visit, we hunt on your behalf for your dream property. Upon identifying and visiting properties that match your requirements, a visit report with pictures & video will be sent to you together with an assessment of the property real value based on real estate prices in Barcelona, state of maintenance of the property and specifics of the building. Renovation estimated budget and rental value can as well be provided upon demand to have a full potential return on investment estimate. Visits of selected apartments are then organized to fit your schedule.
Now, this is the phase where our team of experts makes a huge difference, time and money-wise, as we do all the groundwork on your behalf.
Once we found the gem you were looking for, we will assist you to make an offer in writing. This first step is essential as it not only states the amount you are offering for the property but as well the timeline within which you wish to complete the transaction and any conditions to be met by each side to move forward.
At Barcelona Flat Hunter, client interest comes first. As such, prior making an offer, all aspects of the property will be cross checked to ensure that what was announced is correct and that there are no unpleasant surprises further down the road*.
Some of the verifications we carry out on your behalf:
1 – Property registry to check the specific of the property, the owner identity & its legal capacity and whether there are any limitations or debts on the property
2 – Land registry to ensure it is in adequation with the specifics of the property
3 – Urban planning to check that the property is not affected by any restrictions & is in adequation with the current municipal urban plan
3 – Habitability Certificates & energetic certificate
4 – Community of owners’ dynamic, decisions when it comes to any upcoming repairs or upgrades in the building & financial state
5 – Touristic appartment(s) (with licence) operating in the building
6 – Technical Building Inspection passed or not & with or without aptitud certificate obtained. Any pending issue will be reviewed.
The price negotation is as well an esencial part of this step. For any given property we will assess the real value of the property, collect background information to best understand the circumstances of the sale (reason & origin of the property, time on the market, inicial published price…) and then determine a strategy to secure the property at the best acceptable price.
*Whenever any of the above points cannot be checked prior to signing the offer, Barcelona Flat Hunter will condition your offer to these points to ensure your interest are protected at all time.
The seller has accepted your offer and all checks have been conducted, as such both sides are now ready to sign the earnest money agreement also usually referred to as “Contrato de Arras”. This legally binding contract is essential as it states all the specifics of the sale & purchase as well as conditions to be met for the purchase to take place (that would allow the buyer to pull out without loosing his deposit). A deposit of a minimum of 10% of the property value is required and you can either be present for the signature or mandate us or another person of your choice as your representative to sign on your behalf (in such case a power of attorney would need to be done in Barcelona during your first visit). The terms of this agreement will be carefully drafted and a courtesy translation to English will be provided for your reference.
GOOD TO KNOW >>> In Spain, under the earnest money agreement (referred to as “Contrato de Arras”), in the event of the buyer backing out of the agreement with no justified reasons (keeping in mind that these have to be specified in the agreement), the full amount of the deposit will be lost. If it is the seller who changed his mind, he must pay the buyer twice the amount of the deposit that was paid when the Arras was signed. Both sides’ interests are thus protected.
The moment the arras contract is signed and if you have not already done so, the following steps will need to take place right away:
1– A spanish bank account will need to be opened
2– The NIE (ID number for foreigners) requested
3– Should you be requesting a loan the assessment of the property value (called “tasación”) will need to be requested. This report will then be sent to the selected bank to move forward with the financing process. Do keep in mind that in Spain, banks lend money based on the lowest amount between the purchase price and the assessed price.
Barcelona Flat Hunter will be able to assist you for all three and ease this part of the process too.
Once the bank account open, you will need to transfer the amount needed for the purchase to this account. On signature day the payment to the seller will be either done by certified bank checks or transfer.
Barcelona Flat Hunter will as well ensure that the notary of your choice receives all requested documents from the seller side prior to the day of the signature. These very same documents will be explained to you so that everything is clear prior to the signature day.
It is transaction time! The search and preparation phases are over, today you will sit together with the seller and sign the public deed of sale and purchase, referred to as “escritura publica de compraventa” in presence of the notary.
All original support documents provided by the seller will be handed over to the notary and on your side upon presenting the original ID & NIE and the certified bank cheques/transfer order you will be all set. Once the “escritura” signed, the seller will hand over the key of the property to you and the notary will prepare a copy of the signed agreement called “copia simple”. The original signed contract will be kept by the notary who will then carry forward through the “gestoria” all remaining steps (taxes, registry) upon receiving a provision of funds from your side (approx 11% of the amount of the purchase).
The support from Barcelona Flat Hunter includes a post signature assistance that includes ensuring all utilities contracts are changed to your name & payments set to your account and your details provided to the building management company.
Wish to take a few steps further? Barcelona Flat Hunter can as well be your eyes on the ground for the renovation/decoration of your newly purchased property and assist with the furnishing/home staging as well as rent it out when you are away.
