Property in Spain Group

Property in Spain for Sale. We find homes and make dreams come true

What is an AFO

by

What is an AFO Certificate?

Do I need an AFO an explanation:

what is the AFO certificate? is a very common question that keeps coming up.

If a rustic property has no first occupation licence or habitation license then your lawyer will probably request an AFO “Asimilado Fuera de Ordenación”

The passing of Decree 2/2012 by the Junta de Andalucía http://www.juntadeandalucia.es/boja/2012/19/3?lr=lang_es which was intended to regularize and recognize the situation of the properties located on land designated as rustic land (suelo no urbanizable).

The AFO by means of an administrative certificate states the legal situation of the property.

We need to clarify that this certificate is only applicable to properties situated on rustic land. Though there is a similar process for urban properties with no first occupation licence.

Further to the passing of the above Decree, all the different town halls have drawn up their own regulations for the issuing of this AFO certificate and the tax to pay to obtain the AFO However, the drawing up of the regulations has taken longer than they thought. At the moment, most town halls are in a position to deal with the requests received for an AFO certifícate. Some are still not on top of the situation such as Monda. Cartama was very behind as well.

The tax to pay to obtain this AFO certificate varies depending on the town halls in question, and the difference can be important depending on the municipality where the property is located.

To request this AFO certificate from the town hall, you have to present a certificate issued by a qualified technician, after he has visited the property in question, measured it, and obtained confirmation about certain technical issues related to the property.

How to apply for an AFO

Owners of the property need to apply for the certificate at their local Town Hall either in person or through a lawyer.

For houses already on the market, the application process needs to be started as soon as possible.

Alternatively, the process can be started once a buyer has been found however this may delay completion of the sale quite significantly and the speed with which certificates are issued depends on the area in which the vendor lives.

The first step involves employing an architect to visit the property to:

  • Produce comprehensive plans of the property.
  • Confirm that the property is habitable with a functioning bathroom and kitchen.
  • Confirm that the property has legal electricity and water connections.
  • Confirm that the property has proper waste disposal for sewage – a septic tank not a ‘black hole’ or ‘pozo negro’.

This information is then submitted to the Town Hall along with documents including a copy of the:

  • Escritura,
  • Catastro plans,
  • latest IBI bill (paid)
  • NIE certificates.

To summarize, the content of this AFO certificate implies the following:

– Confirmation that there are no administrative files on the part of the town hall against the construction (or any sanctions or demolition requests for that matter)

– Confirmation that any possible town planning irregularities that may have been incurred have already prescribed.

– Confirmation that the construction complies with the minimum requirements established as far as habitability and health conditions are concerned.

– Confirmation on the kind of works that can be carried out at the property: Only renovation works. In no case extension or structural works.

-Confirmation that the land is not protected.

Actually, this AFO Certificate does not change the legal situation of the property or add any extra rights to the existing ones. That is to say, the construction which complies with the above and is duly registered, does not become “more legal” by obtaining this document. However, this document will be from now on the written confirmation by the town hall in relation to the situation of properties on rustic land.

Furthermore, utility companies (water and electricity) are requesting this AFO document when receiving applications for connections and similar procedures. Likewise, should a license to carry out renovation works on an existing property be applied for, the town halls are also requesting to see the AFO certificate before they can issue the requested license.

Basic Rules in Andalucia on rustic land

1. It is not possible To build homes unless the intention is to engage in agricultural or livestock-farming activities in a professional capacity on the parcel.

2. Existing buildings may not be expanded and/or remodelled, both inside and outside. People have to purchase what is already built and no changes are legally allowed.

3. It is permitted to build with the intention to operate rural accommodation or a bed & breakfast, but it is necessary to carry out a preliminary operational project – called in Proyecto de Actuación -, that the Government of Andalusia must approve. This procedure can take over 6 months and it is difficult to obtain a positive response from the Regional Government.

4. It is necessary to take into account that most homes currently sold in the Andalusian countryside are illegal or irregular, i.e. if the authorities had done their work, they should not have allowed construction and, therefore, they should not exist.

The case is that, for most buildings, it is not possible to start any penalty procedures against buildings built without a licence or with an illegal licence on non-development land due to the time elapsed.

This means that legal responsibility is time-barred since over six years have elapsed since the end of construction. When we refer to non-development land with any special protection, the period of six years does not apply.

For Legal information on the above or a specific property please contact your Lawyer. if you are looking for a Lawyer experienced in these matters you can contact Francisco Gomez from Gomez Abogados  http://www.gomez-abogados.com/

What is a Finca?

by

What is a Finca?

what is a fincaWhen buying a house on the Costa del Sol you need to know what a Finca property is. The Spanish name “Finca” applies to a  type of real estate built on rustic land. Not urban, which is dedicated to agricultural production.

Fincas are usually located on a piece of farming land with a  house.  In some cases with surrounding sheds or stables.

The name Finca is common in Spain.  If the Finca is very old, it may not appear in the title deed.

Originally for agricultural production or for livestock, many of these farms are now simply recreational spaces. They are used as vacation or weekend properties for people who live permanently in the city. Who seek the tranquillity of the rural environment from time to time.

These farms dedicate much more space to habitable constructions such as barns and equipment sheds.  More modern Fincas can also have swimming pools or converted water deposits.

Quite often a traditional Finca property may have been converted into an upmarket family property purely for recreational purposes.

In the English language, a “Finca” has (especially within tourism) recently taken the meaning of a home in the country. Although generically translated as “farm”, Finca can refer to both a large, luxurious country estate as well as a small rural property or plot of land, all of which are often sought after by foreign buyers.

Why Do People Buy A “Finca”?

There are many reasons why Spanish and foreign buyers decide to buy a Finca property. A Finca offers peace and a reprieve from the hustle and bustle along with the coastal and city areas of Spain.

People who like animals often prefer to have space and the freedom to keep pets. Other people enjoy growing their own fruit and vegetables.

When considering whether towhat is a finca buy a Finca property near the Costa del Sol, you may be someone who wants the best of both worlds. The energetic life of the city or coast when you feel like it and alternatively the quiet rustic peace away from it all in your own home comfort.

What To Look Out For When Buying?

Since most Fincas is located off the busy areas, they are not well connected in terms of public transport. Owning a car to get around is therefore advisable.

Some of these rural properties are not connected to the city’s main water or electricity supplies.

Most of them do have their own well, but if you want to buy a rustic property, you should make local enquiries about the domestic supply of water, electricity and telephone connection.

Most Fincas have been built since long before building restrictions and rules were created, and may therefore not have proper documentation.

When looking into buying a property, you should ask for the official registration documents.

An AFO, DAFO or SAFO may be required in most circumstances to ensure the buildings are registered correctly. Find out more here: https://propertyinspaingroup.com/what-is-an-afo

Always use a reputable lawyer who is experienced in Country properties when buying a Finca. Each area Townhall has its own local bylaws. We recommend http://www.gomez-abogados.com/

Real estate agent in Spain

by

7 signs that you have picked the Right Real Estate Agent

real estate agent in spain

The Right Real Estate Agent

Buying or selling a home can be a complicated and stressful experience. There can be a lot of moving parts involved that may come as a surprise to people who have never been through the process before. This is why having a great real estate agent is critical.

Picking the right real estate in Spain isn’t always easy, but you’ll definitely know if you’ve picked the right one for you.

Here are seven signs that you’ve made a great decision in picking your real estate agent:

1.You like being around them 

You don’t have to be head over heels in love with your real estate agent in Spain, but you need to at least enjoy being around him or her as you will spend a lot of time communicating with your agent, so the relationship needs to be a good one to help make the experience as painless as possible.

There’s nothing worse than dealing with a person who you don’t like being around, especially if the going gets rough. If you don’t cringe at the sound of your agent’s voice then you might have found the right one.

2.They’re responsive andProperty in Spain group available 

This point is non-negotiable. A good real estate agent will make themselves available to you and won’t leave you hanging when you’re waiting for a response.

If your agent is leaving you feeling like a spurned date, they’re doing something wrong. The right agent understands how important and serious a real estate transaction is, and will always make sure to make your needs a priority.

3.They’ve asked you to get pre-approved 

If you’re a buyer and you haven’t spoken with a mortgage professional before going out and looking at houses, a good real estate agent will ask you to.

It might be frustrating if you don’t understand the reasons why, but a good agent knows that it’s for your own benefit just as much as theirs. There are a number of important things you might find out by going through the pre-approval process, many of which you should know before spending any of your time searching for a home.

A good agent knows this and wants you to know as well.

real estate agent in spain4.They’re proactive and not just reactive 

This is one indicator that will set the right agent apart from everyone else. The right agent will not just go through the motions, they will be proactive in helping you identify and find the right solutions. For instance, instead of just sitting back and waiting for you to send properties you might have come across, a great agent is always on the hunt for the ideal property for you and will communicate and suggest things that you might never have considered before.

Being proactive is a mark of a true real estate professional.

5.They’re honest with you, even when it hurts 

Just like honesty is important in a romantic relationship, so is honesty in a real estate relationship.

The right agent will tell you the truth when you need to hear it, even if it’s inconvenient for them. It takes a lot of guts to be honest with someone when it might cost you money, but it’s also an ethical imperative, and a great agent will always put their own character, honesty, and integrity ahead of making a buck.

And if they have to tell you the harsh truth that what you’re looking for is impossible, the right agent will do that too.

6.They don’t give up easily

buying process in Spain

A real estate transaction rarely goes off without a hitch these days, and sometimes it feels like the universe is conspiring to keep you from buying or selling a home.

But it’s much easier to throw your hands in the air and say “I give up,” or “Someone else can figure this out,” than it is to buckle down and come up with a solution.

The right agent doesn’t give up and will uncover a way to keep things moving, even it takes some creativity. The right agent fights for you and doesn’t throw in the towel after getting jabbed.

7.They want to build a relationship 

One of the best signs that you’ve picked the right agent actually occurs either before or after you work with them on a deal.

Even though real estate is transactional, the best agents look to build a relationship with their clients instead of just working with them on a deal and then disappearing.

If your agent stays in touch, presents themselves as a constant resource, and is in it with you for the long haul, then you’ve definitely found the right one for you.

The buying process: https://propertyinspaingroup.com/buying-process-in-spain/

 

Buying Process in Spain

by

The Buying Process in Spain

So let us start from the beginning. Just so you are aware of the buying process in Spain before you go any further. I help you with your search for a property as explained above.

Once you find a property that you like and decide that you want to go ahead. You make an offer and I forward the offer on your behalf. The offer is whatever you feel is comfortable for you and your personal circumstances. But I advise you based on feedback that I already have from the vendors. Be aware that Spanish vendors are not normally as open to offers as other nationalities. Some vendors have mortgages on the properties and need to cover their costs.

buying process in Spain

Due to the 2007 crisis, many vendors have already reduced by up to 50% of the original price.

A general rule of consensus is to offer between 5-10% less than the asking price. Though every case is different. Some vendors only accept the asking price.

At this point, you state any requirements as to what is included in the purchase such as furniture.

After negotiations and on agreement of a figure for the purchase between yourselves and the vendor.  It is normal in Andalucia to sign a reservation and deposit contract. This is first checked by your lawyer. Then a reservation deposit of either € 3000 or € 6000 is placed. Depending on the price agreed upon and the requirements of the agents involved.

In most cases, this money is transferred or paid to the lawyer acting on your behalf. It is held in an escrow account or passed on to the agent or developer. When your lawyer is satisfied that the paperwork is correct. Once the vendor has signed this contract they are obliged to remove the property from the market. Some contracts have penalties in place others do not so you check with your lawyer.

You request that the contract is subject to certain conditions. For example subject to a mortgage approval or subject to a survey etc.

When the property is reserved for you, your lawyer starts all the searches. He checks the documents to make sure that the property is owned by the said vendor. It is duly registered and legal. There are no debts or charges on the property. The catastral value and the services that are in place.

It is often helpful for you to provide the lawyer with as much information about the property as possible. Such as information from the agent and photos.

An inventory of what is included in the sale is drawn up at this point and added to the contract.

Although in many circumstances, little things come to light at this stage. These can in most cases be rectified between the lawers.  An important point is to use a reputable lawyer that is experienced in the property type that you are purchasing.

This process takes about 2 weeks in general. If a mortgage offer is necessary it takes up to 6 weeks as a bank valuation will be required.

When the lawyer is satisfied with all the correct paperwork he prepares a private purchase contract. This is signed at the Public Notary. It is the binding contract in which both parties agree to the sale/purchase of the property. Both parties agree on a date of completion  between 1 to 4 months in general. At this point, the purchaser pays the vendor 10% of the agreed purchase price minus the reservation deposit.

Finally, on the agreed date for completion, the new title deed is signed upon completion in front of the Public Notary.  The keys are handed over. If you have applied for a mortgage the mortgage title deed is signed in front of the Public Notary upon completion.

Your lawyer will then ensure all of the following:

  • Register both title deeds with the Land Registry
  • Pay the Public Notary fee
  • Pay the Public Land Registry fee
  • Pay the legal taxes at Malaga Tax Office
  • Set up all necessary direct debits and standing orders from your new bank account in Spain
  • Set up utility contracts, local taxes, rubbish in your name
  • For an extra fee, you can request a Spanish will but discuss this with your lawyer.

The above information is just a general idea of what happens from my experience. For full legal advice a consultation free of charge is available in most cases with the lawyer of your choice. Before you make any commitments or sign anything.

The buying process in Spain for a new build or off plan property is slightly different:

As soon as you choose the new home you want to buy, the first thing the developer asks you is to leave a deposit, usually € 6,000 – € 10,000 which will be taken from the final purchase price. The agreement is subject to preliminary legal checks, mortgage loan availability on the property and a building survey, the deposit is returned if there are problems. Always check with your lawyer before reserving a unit and paying a deposit

New build payment schedules

  • Reservation Deposit: € 6,000 – € 10,000
  • Down Payment: Usually 30%
  • Balance in instalments or upon building completion 

To see information on buying costs in Spain click the following link: https://propertyinspaingroup.com/buying-costs-in-spain/

To get a currency exchange quote click the following link: 

https://www.lumonpay.com/referral/?F_ID=7052

 

Buying Costs in Spain

by

Buying costs in Spain ?

There are taxes and fees payable included in buying costs in Spain when purchasing a property

It is important to know from the outset the real costs that you will face when you buy a property in Spain. The costs do vary depending on the type of property that you intend to purchase and also the regions that you are buying in. We focus on the Costa Del Sol

buying costs in spain

buying costs

As a rule of thumb in Andalusia, you should allow 10% on top of the purchase price for a resale property if you are paying cash and 13% if you need a mortgage. This will cover all associated costs and you should come out with some change.

If you are purchasing a resale home, you will incur the following breakdown of buying costs in Spain:

Property transfer tax on the purchase price of the property that you are buying

  • Up to 400.000 euros, you pay 7% transfer tax
  • From 400.000 euros to 700.000 euros you pay 7% transfer tax
  • From 700.00 euros onwards you pay 7% transfer tax

You will also need to pay the following buying costs in Spain

  • (optional) survey fee 300-800
  • Notary fee 600 euros
  • Registry fee 500 euros
  • Legal fees 1% of the property price.
  • If there is a mortgage needed you also have to pay:
  • 2% approx tax on the amount borrowed
  • Notary fee (again)
  • Registry fee (again)
  • Opening fee 300-500 euros
  • Valuation fee 300- 500 euros

If you are purchasing an off-plan property (a new property, direct from the developer) the relevant taxes and fees are approximate as they vary:

buying costs spain

  • VAT: 10%
  • Stamp Duty: 1,5%
  • Notary fee approx 600 euros
  • Registry fee approx 500 euros
  • Legal fee 1% of purchase price

The above information is approximate based on our previous experience. Ask your lawyer for exact costs relevant to your particular purchase.

To see the buying process in Spain click the link: https://propertyinspaingroup.com/buying-process-in-spain/

For a currency exchange quote click the link: https://www.lumonpay.com/referral/?F_ID=7052

 

Buying a property in Spain

by

Buying a property in Spain

So you have been thinking of buying a property in Spain either researching or holidaying there for a while and you are now trying to purchase a property. The best way forward is to make a plan.

The first thing that you must do is ask yourself questions to establish your personal criteria. So start by thinking about and writing down the answers to the following questions. You need to discover what is most important to you about buying a property in Spain, to make the very best of your valuable time when you come to view.

What are your options when buying a property in Spain?

  • Are you seeking to relocate permanently?
  • Or will this be a dream holiday home?
  • Are you looking for an unbeatable investment?
  • It is best to know from the start. Although you may change your mind later.

Which are your preferred areas when buying a property in Spain?

  • Where do you want to be?
  • Do you love the sea or the country?
  • Do you want to be in a town or a city?
  • Do you already have a preference?
  • Are you not sure?
  •  

We are happy to discuss with you the advantages and disadvantages of each area. Deciding where you want to be is probably the best place to start. We can provide you with detailed information on each area. We are happy to show you around different areas to help you decide on the best place to settle. Again when you arrive you may change your mind if you have not been here before this is normal procedure.

What property type will suit you best when buying a property in Spain?

  • What type of property do you envisage yourself living or staying in?
  • Is it an apartment or contemporary new villa?
  • A country finca or village townhouse?
  • Or do you want to keep your options open?
  • A B&B or an equestrian facility?
  • We’re here to help with every request. We are happy to show a selection of each to discover which your preference is. Remember in reality the properties are normally slightly different to the pictures on the internet.

Have you decided on a budget for your purchace?

  • Have you established a budget?
  • Is it flexible or set in stone?
  • Do you require finance?

We endeavour to provide you with properties that offer great value for money. We will negotiate the best price for you and arrange finance where necessary.

What are your needs and wishes when buying a property in Spain?

  • What do you expect and desire from your new home?
  • What are your own individual requirements?
  • Is a pool a must?
  • A garage?
  • Walking distance to bars and shops?
  • Stables for horses?
  • Do want to reform an old property?
  • Or do you want brand new or off plan?
  • Or is livable for now and do up gradually a consideration for you?
  • Do you require panoramic views?
  •  

We will take all of these expectations into account and choose properties to view with these requirements in mind.

Once you have a written guide to your personal criteria you are ready to start looking.

You will need to find a knowledgeable real estate agent to work with ….

Of course, we would love to hope that you give us a try first and we will do all of the searches on your behalf once we have your criteria. We have access to all of the live properties available as we work with the other 2000 agents on the Costa Del Sol through an MLS System. We can request paperwork to check the legalities and other important issues such as water and electric connections and check the registrations of the properties. Your lawyer will do all of these checks for you once you find a property that you would like to purchase but we can save you time and heartache by narrowing it down beforehand and providing you with suitable properties to view.

Other options are searching portals and other agent’s websites. You will find that you keep seeing the same properties where ever you are looking as all agents share properties that are on the market.

  • You will need to Source a reputable independent lawyer that is experienced in the type of property that you are purchasing.
  • You can look online or we can provide you with lists of reputable local lawyers in the areas that you are looking.
  • If you require a mortgage you will need to meet with a Spanish bank or finance company.
  • We recommend that you try https://www.fluentfinanceabroad.com 
  • Before you send any money to Spain you will need to sign up with a currency transfer company.
  • There are many currency companies and it is best to look at which ones are giving the best rates at the time that you are about to purchase.

Your viewing schedule

  • If you live here in Spain we can normally arrange viewings for you with 24hours notice.
  • If you are coming from abroad then you need to set a date for when you are coming to investigate the areas and properties.
  • Are you all set and ready have you been researching and scouring the internet and now have a refined list of prospects to see?
  • Or would you prefer us to tailor a range of options and appointments to view based on our experience of your preferred areas and property types?
  • Get your flights booked and arrange accommodation. Let us know in advance so that we can set up all of the viewings for you on your favourite properties and introduce you to any service providers that you may need.
  • We can help with flights and accommodation bookings in our area if need be. Call Victoria Monkhouse on 01268 941 086

Homecare Support

Customer service is important to us, after sales advice and care, we are always available today, tomorrow and long after you have moved into your new home.

Property Management and general services

  • Seeking holiday rental income?
  • Want help with your cleaning?
  • Is it a gardener or pool maintenance you need?
  • Wish to consult an Architect?
  • Want to talk to a Builder?
  • Need a Landscape Gardener or Interior Decorator?

We know where to turn. We can recommend reputable service professionals.

By the end of your viewing trip ideally, we will have found your dream property. So if you are in a position to go ahead then the buying process begins.

 

Lets Get Social!

WhatsApp Nikki Powles 0034 654 091 051

Nikki Powles