How to buy property in Ibiza
The buying process of property in Ibiza:
I. Offer
When you plan to buy a house or apartment in Ibiza it is accustomed that the buyer brings out an offer. We will bring this offer out to the seller in order to get an agreement on price terms and conditions. With terms and conditions, we mean for example; are all documents in place, maintenance, renovations, inventory, signing date, etc…. Once we have reached an agreement with the buyer and seller we can go to the next step. At this stage, nothing is binding yet.
II. Private contract ( Arras contract) & Deposit & Reservation contract – Contracto Privado de Compraventa
After we have reached a mutual agreement on the price, terms, and conditions. The next step is the private contract also called a pre-sale contract. The private contract is an agreement between the buyer and the seller which contains all the relevant details of the purchase. The private contract will normally be subject to legal checks and this can influence the signing of the private contract. For this, we advise taking a lawyer to guide you through this whole process. Our experience and advice are that it is best to take a good lawyer from Ibiza instead of taking a lawyer from your home country. The laws and regulations are changing fast on the Island and to avoid problems we think this is best. Ibiza Now can recommend you a lawyer if needed.
The deposit on a property in Ibiza is normally 10% of the agreed purchase price after signing the private contract. After the signing, the deposit has to be paid. Often the deposit has to arrive within 7 days on the agreed account. Within the private contract there is a clause that says if the buyer withdraws from the sale, the deposit is lost. If the seller withdraws from the sale, the seller has to compensate the buyer twice the deposit. It is not strange in Spain that the deposit is paid on the seller’s bank account. But depositing on the account of the gestor, notary or escrow account is also often used.
Another possibility is a reservation contract. For a relatively small amount ( between 2.500 – 10.000 euro) the house can be taken off the market. This will give the buyer and the seller more of a commitment towards the draft and finishing of the private contract. It’s important that the buyer is aware that if the private contract isn’t going to be drafted and signed that the reservation amount could be lost or if the seller doesn’t want to sell anymore all made cost could be for the part of the seller.
III. Completion of the Public Deed – Escritura
In the private contract, there is an agreed for the completion date. On this date, we have the transmission of the property at the notary. The buyer has to pay the balance of the purchase price and all fees, including notary fees, taxes and stamp duties. The Public Deed will be signed by both buyer and seller in the witness of the Notary and your legal adviser. Payments are made by bank check or wire transfer.