Steps in the process of buying a property.

Brief and Simplified Explanation of the Property Purchase Process
The property purchase process follows a series of steps to ensure a secure and effective transaction.

Step 1 - The Offer
Once you have selected the property you wish to acquire, you need to make a formal offer. This document informs the seller of your intent to purchase and establishes the price you are willing to pay. A real estate advisor will guide you in drafting the offer, including any relevant conditions (mortgage, timelines, etc.). If the purchase is made in cash, the funds must come from a bank account in Spain.

Step 2 - Offer Acceptance
If the seller accepts the offer, the preparation of the necessary documents for the property transfer begins. To formalize the purchase commitment, the buyer must make a reservation payment, typically ranging from 5% to 10% of the agreed final price. This amount is deducted from the total purchase price.

Step 3 - Deposit Agreement 
This is a private contract signed between the buyer and the seller that reinforces the commitment of both parties. It details the terms of the sale, and a deposit is made as a guarantee. There are different types of deposit agreements, but the most common is the "arras penitenciales," which allows for cancellation under certain conditions: if the buyer withdraws, they forfeit the deposit; if the seller backs out, they must return twice the amount received.

Step 4 - Deed of Sale
Once all documentation is in order and financing has been approved (if applicable), a notary appointment is scheduled to sign the public deed of sale. At this stage, the buyer pays the remaining balance and receives possession of the property, officially completing the transaction.

Lars Polegato

Lars is a real estate agent in the city of Santa Cruz de Tenerife, with years of work experience in the sector, where LPC Collective has developed commercial strategies to promote the purchase and sale of properties.