Everyone in Spain thinks they are an "estate agent" and many vendors give their keys to friends to "sell" their home. Showing someone round a property is the easy part. But what happens next? This is where expertise is really required. A true estate agent will immediately ensure that a lawyer has been appointed and that thorough searches are conducted, to ascertain whether the property has any outstanding debt. If it does, and this is not paid before completion of the sale, then you, the purchaser, will inherit the debt. Of course the first thing to find out is if the person selling the property is really the owner, or has power of attorney to do so!

There have been recent horror stories in the British press where prospective buyers have contacted someone in the newspaper and explained that they have lost their money or the land they bought in fact did not belong to the seller etc. This of course is the extreme case, but there are many con men, preying on the vulnerable buyer, who will be more than happy to alleviate you of your nest egg.

So, only deal with a reputable agent who works from an established office.

Once you have decided upon a property and agreed the price with the owner, it is necessary to pay a reservation deposit of € 3,000 to € 6,000 this removes your desired property from the market and is the start of the Legal/Buying procedure. Within approximately 7-14 days after the Reservation Contract has been signed the "Compra/Venta" contract will be drawn up with the seller and the buyer agreeing the sale – purchase terms, the time scale, the selling price and this will include paying of a full 10 % deposit to the owner, less the reservation deposit. Once agreed the Private purchase Contract needs to signed and you must the 10% of the purchase price handed to the seller, the balance will then be paid at the end of the term agreed by both parties and this will take place at the Notaries Office.

When purchasing property here in Spain there are a number of costs that have to be taken into account. Generally the purchase costs will amount to 10% of the declared Value of the property you will be buying and are made up in the following way. Transfer Tax; this is a tax charged based on the declared price of your property and is currently 7% for a resale property and 7% IVA for a new property. New property also attracts stamp duty of .5%. Property registration; fees are charged by the local property registration office to change the old deed to the new deed and these costs are approximately € 250 to € 500 for each registration. Notary charges, these are charged on a sliding scale and may average approx. € 500 to € 1,000 for each property. Upon reaching the Notaries Office, this is where the property will become your possession and the seller is paid the balance of the monies as per the arrangements originally made when the 10 % deposit was paid to secure the property in your name and the private Sale/Purchase Contract was agreed and signed. Plus Valia; this is a municipal tax and is based upon an officially assessed increase in the value of the property and can be small if purchasing a new property or quite a large amount for a property that has not been sold for 20 years. The seller usually pays this tax but it is wise to ask.