About this guide
This is the latest information you will need, if you’re thinking about buying property in or around Javea, on the Costa Blanca in Spain.
What’s covered in this buyers guide?
- Step-by-step glance at the home buying process
- Starting point for buyers
- What happens when you find a property?
- Property surveys
If you have any questions just email us or give us a call – we’re here to help!
To start with, ask yourself: Is Javea the right destination?
Javea is located on the eastern coast of Spain. In the province of Alicante, which is found in the Valencian Community.
It’s a very diverse town, full of different nationalities. It’s mostly inhabited by retired folk from abroad but in the last 20 years or so, young family’s are choosing it as their destination. Thanks to the wonderful lifestyle it has to offer.
If you are self-sufficient financially, work from home or have a good business idea that you think will triumph here, then Javea could well be the perfect destination for you.
Otherwise, jobs are a bit hard to come by and most positions require basic knowledge of the Spanish language. Not always but most of the time.
If you are thinking of retiring to the Javea area – don’t think twice, just do it! Providing you can support yourself both financially and medically.
If Javea is the right destination for you, you need to take it step-by-step...
Know what to do and what lies ahead during the home buying process in Spain, by
- Keeping an eye on the real estate market
By keeping tabs on newly listed property for sale, which properties have sold, and by reading up on property market overviews.
- Making contact with a legal representative
A lawyer or fiscal rep, to represent and advise you on local laws, regulations and tax liabilities for either non-tax residents or tax-residents – whichever you will be. Ask us for a recommendation!
- Getting a NIE Number
This is a Spanish tax identification number for foreigners, also obligatory, and can be obtained by your lawyer or fiscal rep.
- Opening a Spanish bank account
Having a Spanish bank account is obligatory for completing the purchase transaction and direct debiting all the property’s bills.
- And sort out finance if needed
Get mortgage or financial advice if needed, keeping in mind that if you buy with a mortgage, extra costs may be incurred.
You are not considered a cash buyer if you need any finance, even if it’s only partial.
This is vital information to mention at the start of working with any real estate agent. Knowing this will ease time-frames later on; when time is of the essence.
Starting point for buyers
Most buyers’ house hunting journey starts with trawling the web. Now you’ve found the right estate agent, Vicens Ash, it’s time to start planning a trip to Javea and start viewing lots of homes.
When you think you’re getting close to finding a property to buy, you need to appoint a legal representative. Feel free to ask for a recommendation.
Who will also explain the whole purchase process to you and explain how they will proceed. They will also sort out all the necessities such as NIE numbers for foreigners and power of attorney if needed.
Most legal reps will give you a presentation and outline their service and its cost and once you agree to employ them, a part payment must be lodged to account of the final amount.
You found a property, what happens next?
- Negotiations start and the sale price will be agreed. You will be asked: Is it subject to mortgage approval?
- Whether subject to finance or not, you need to pay a reservation fee.
- To take the property off the market (possibly on the market with other agents too) until all the property searches are completed.
- A 5,000 euros reservation is paid for property under 500,000 euros and a 10,000 euros reservation for property over 500k.
- Property searches carried out by your lawyer or rep are to see if there are any debts or encumbrances are officially registered against the property; which by Spanish law, you could inherit.
- If there are debts, your lawyer will free up any debts etc. on or before completion which are paid by the seller.
Property Surveys: Is it necessary?
Structural surveys are not a legal obligation in Spain but are common practice to other nationalities.
The only time a survey is carried out in Spain, is when the buyer requests for one and chooses to pay for it independently: for their own peace on mind. Let us know if you need a contact.
If buying with a Spanish mortgage, the bank arranges for a valuer to visit the property, however this is not a full structural survey. It is much less detailed.
Don’t lose it: pay a reservation!
Once you get the purchase price agreed, you need to pay a reservation or go straight to the 10% deposit.
Signing a reservation agreement is a quick step to secure a property and reserve it for a short period of time, whilst property searches and points to agree are drawn up for the pre-sales contracts.
Once details such as: completion date, Notary, payment schedule, inventories, have been agreed and written into the pre-sales contracts (aka “contratos de arras") you sign it, pay the 10% deposit (less the reservation paid to date) and the property is taken off the market.
On the day of signing at the Notary, the balance of the purchase price is paid upon completion.
Let’s define that for you again: pay a reservation or deposit sooner rather than later – otherwise you may lose it! – And that’s not just agents talk, it’s a reality!
Buyers Guide Summary
10 Points to remember to cover when buying property in Javea:
- Watch the market, keeping an eye on what property is for sale in Javea
- Get legal representation and advice
- Go and see properties for sale
- Sort out necessary paperwork: NIE’s, power of attorney’s etc.
- Get a bank account and finance if needed
- Find the right home and make an offer
- Agree a price and terms and conditions
- Sign an agreement and pay a reservation, with 10% to follow
- Sort out removals and furniture
- Got to the Notary, sign and make the final payment