So what should you know about a finca?
In essence, a finca is either a small country house or a relatively large property in rural areas. Some people consider this a 'farm' or a farmhouse. You can usually find an orchard, some olive groves or perhaps an arable land attached to the property. It may be located in between towns or outside the confines of a village. It is an ideal property for anyone who is already fed up with the bustle of city life or of the Costas, and if you want to take care of animals or cultivate different crops in a spacious area.
At present, there is a growing trend for the purchase of fincas in Spain. A lot more foreigners prefer to buy a finca and convert it to a holiday home; some expatriates invest in such property as their permanent residence. This is mainly because most coastal and commercial areas have become really crowded. Another reason is the price since many fincas for sale can be very cheap. However, you need to work hard in order to find a remarkable but cheap finca in Spain. Research is the key.
Here are some guidelines to consider for a more productive search and a rewarding buying experience:
Think about what you need a finca for.
Clearly define your needs and objectives. Set realistic goals, and determine whether a Spanish country house is the most suitable option. See to it that you understand the purpose of such remote property and that you are well aware of its benefits and disadvantages. If you want to live in the part of Spain where you can truly experience a noise-free and idyllic surroundings while raising various animals and maintaining a garden full of fresh fruits or vegetables, then you should consider buying and living in a finca. Check out different properties and see whether they have what you need. Assess and compare.
Check whether the house is new or an old construction.
This will help you ascertain the quality and legality of the property. Certain changes and new regulations in the Spanish property law seek to improve the quality of properties being constructed. Apparently, several Spanish properties have been constructed poorly and illegally. Some newly-built properties don't even meet the modified standards. Therefore, make an effort in finding out the legality of the entire property. Look into the features and have all documents verified, or rectified if need be. Don't be fooled by the cheap prices regardless of how magnificent the property appears to be.
Secure all necessary documents before closing any deal.
Do not make the mistake of handing out any payment or deposit before you even get to see and check the documents necessary to ensure the legality of the property. You wouldn't want to have problems with the ownership, especially when dealing with your necessities (i.e., arranging for utility services) once you have purchased the property. Try not to cut corners, ensure that the property has legal documents and that the owner is willing enough to submit them for verification.
Moreover, if the house is new, ask for a copy of the building project license. It is one of the crucial documents, issued by the local council, that you need to get hold of for review along with the pictures taken during the construction. This will help you ensure whether the construction conformed to the legal standards.
On your part, you need to procure all the required documents that will authorize your stay and your financial transactions in Spain. You should get an NIE or Numero de Identification de Extranjeros, your official tax identification number, either through the application for a Residence Certificate or by making a separate application. Find out what applies in your case to ensure your residency, and a smooth real estate transaction. You might get into trouble for not having an NIE and other documents.
Hire a solicitor to help you out.
You may not want to work with a real estate agent. However, it is never a good idea not to use the services of a knowledgeable and experienced Spanish solicitor. Remember, there can be a lot of troublesome legal matters to take care of. Not having someone to guide you throughout the process can be burdensome and even dangerous; especially if you are not yet totally fluent in Spanish. Hence, look for a certified Spanish solicitor who is also fluent in English to take care of all the legal matters; particularly when considering a finca with multiple ownership (i.e., a property owned by multiple members of a family).
Consider a mortgage.
It is prudent to make arrangements for a mortgage when you don't really have any or enough cash to spend on your investment. Go over different mortgage plans. Choose the one that suits your needs and ability to repay the amount owed. The mortgage lender will assess your financial status anyway.
Once the lender can ascertain that you can manage to repay the mortgage, learn about the requirements and the process as well as the interest rates and other details concerning your application. Check your finances before deciding to make a purchase. In addition, when you need to do some money transfer, see to it that you go for licensed foreign trade experts. Be careful with all your financial transactions.
Finalize everything; close the deal, complete the process.
Sign the preliminary contract as an indication of your commitment to buying the property. The contract should include all the terms agreed by both parties and other details concerning the purchase (e.g., price, initial deposit amount). Do not sign yet unless your solicitor can confirm the accuracy and validity of the contract.
In addition, you should prepare to sign the title deed or escritura. You should sign the title deed in person or give your solicitor the power of attorney as legal representation. Only then you can secure the ownership of your chosen finca. But make sure everything is clear and accurate.
The last step will be the registration of your property at the local land registry. The notary is responsible for sending a copy of the title deed to the land registry but often they do not bother, so get your solictor to check that it has been done. It could take a while so you and your solicitor still have some time to deal with the miscellaneous payments along with the taxes for the transfer process. Make an estimate of all the additional costs before purchasing any Spanish property to avoid compromising your finances.
It is easy to enjoy a peaceful life in Spain, particularly if you live in a rural environment. You can find a lot of cheap fincas for sale in Spain, and investing in such property will enable you to live the serene and simple kind of life that you have always wanted. However, make sure that you understand the pros and cons of buying and living in a finca. You must be prepared to deal with all the challenges of living in a remote property before doing your search for a finca to invest in. Reflect on your needs and goals.