Looking to purchase a property in Ibiza? It sounds a little bit daunting, but with our extensive knowledge of the Ibiza’s real estate market the process should go as smoothly as possible.
With the banks beginning to give mortgages, the rental market growing each year, and the sales market on the rise, now is the best time to purchase a villa or apartment in Ibiza. Normally, 9/10 ones mortgage payment would be close to or lower than a monthly rental in Ibiza, making it a win/win situation to buy a property.
Give yourself time to find the perfect apartment or villa:
Normally first time buyers can find a property within 60-90 days. Once you find the property that best suits you, it usually takes 45-60 days to close. This process can sometimes take more or less time depending if the purchase is an all-cash transaction or with a mortgage through the bank. Our agents will help you with all of your paperwork to streamline this process as much as possible.First time buyers will typically view quite a few properties to get a good feel for the market. On average, one will view anywhere from 1 to 15 properties. Your Property Boutique Ibiza agent will put together a comparative market analysis for each apartment to show which of the options would be a better investment.Buying Process:Once you have decided on a property that you want to buy in Ibiza is to enter into negociations with the owner of the property regarding the price and terms and conditions of sale. This process does not need a binding contract.We at the property boutique Ibiza always recommend that if you are not fluent in Spanish to use a solicitor – We can recommend various Spanish solicitors that are fluent in both Spanish and English.Normally if the seller agrees on a sale price, a pre-agreement contract is drawn up and a down payment is put down to reserve the property, and taken off the market. This amount is normally 10% of the sale price but can depend on the conditions of the seller.Within the pre-agreement contract there is also a penal claus should the seller decide to pull out of the sale the buyer is entitled to double of the prepayment deposit back as compensation. If the buyer decides to pull out he/she looses their prepayment deposit.The Property Boutique Ibiza always recommend that a survey and check on planning status is carried out to make sure that everything is up to building code as well as free of any loans or if there is a mortgage.The Big Day – Final Contract – Escritura de CompraventaIf the buyer does not already have a Spanish tax number NIE and bank account in Spain, he/she will need to do so before going ahead with the transaction.On the day of the sale of the property, the remaining balance (sale price less deposit and any fees pending) must be paid. The seller and the buyer the sign the final contract, which is the equivalent to the title deeds of the property.The buyer is then issued with the public deed of transfer (la escritura) in front of the notary public, signs and certifies which copies of this will be sent to the tax office and property registry. During these proceedings it is always recommended to have a solicitor present to make sure ones best interests are protected.