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La Cala Property

Buyer’s guide

1. Reservation

The first step in the process is to reserve the property that you wish to purchase. You do this by signing a reservation contract with the developer and paying a reservation fee of €6,000. This removes the property from the market for 21 days, giving time to arrange the down payment that is required at the time of signing the purchase contract.

2. Private purchase contract

Before signing the private purchase contract you or your solicitor should do all the appropriate checks so that you are comfortable with all aspects of your purchase. These are:

Review the private purchase contract.

  • The contract you will sign with the developer covers all key aspects of the agreement and is legally binding. It specifies the property you are buying along with specific plans, specifications and qualities. It details both the client’s and developer’s obligations.
  • Confirm the guarantees that will protect all of your payments.
  • Check the land registry to confirm the land belongs to the developer.
  • Check if the planning permission has been granted by the local authorities (Licencia de Obras).
  • Check if the first occupancy licence has been granted (Licencia de primera ocupación).

20% of the purchase price must be paid when signing the private purchase contract.

3. Completion and hand over

Before you sign the public deeds to officially take possession, it is recommended that you perform a few final checks:

  • Certificate of Habitability: The licence of first occupation is essential as it shows the property is fit for human occupation and eligible to be connected to the town’s electricity and water supplies. Without this licence you cannot take out a residential mortgage nor connect the utilities.
  • Request a land registry filing for your property: The promoter should have signed deeds before a Notary to register the division of the original land into all the individual properties. (This is known as a Nota Simple).
  • Check on outstanding debts such as unpaid taxes with the local government.
  • Structural Guarantee: Any new property must include a ten years guarantee against major structural defects.


Signing the Public Deeds

At this point, you gain full legal title to the property and receive the keys. A document of deeds (Escritura Pública) will be signed by both you and the developer before a Notary. The deeds can then be submitted to the land registry.

At the time of signing the public deeds, you will need to settle the remaining payments to the developer and the tax authorities. This can be done by means of a bank-guaranteed check, by bank transfer or in some other way that is acceptable to the developer. It is often advisable to use a cheque drawn from a Spanish bank account to avoid problems. If using a mortgage, a representative from the lender will be present to confirm that the developer is receiving payment.


After signing the Public Deeds

You will need to submit the deeds to the land registry and have your title incorporated as well as register your purchase with the municipal authority where your property is located.

You will have to set up accounts with utility companies for your water, electricity and telephone line. These will be pre-installed by the developer but you need to set up an account and make the arrangements for payment with the utility companies.

After signing the deeds, you should spend a short time ironing out any small faults that may arise in a newly-built property.

Small faults are normal and expected (taps that don’t close fully, cupboard doors that don’t shut perfectly, etc.), although the higher the quality (both in terms of materials and workmanship), the fewer things that you should find going wrong.

This is normally done on the day you take possession of the property and you will be accompanied by professional staff from the technical department to make a list of these faults so the developer can put them right.


Costs incurred when purchasing a Property
(Please bear in mind that the following figures are estimated)

4% of the value of the property
0.25% of the value of the property
0.5% of the value of the property
1-1.5% of the value of the property
1.5% of the value of the property
€400 approx