It is common practice for the buyer and seller to confirm the details of the purchase in a private contract, with the buyer putting down a non-refundable deposit of between 5% and 10% of the purchase price.

This reserves the property and allows the buyer sufficient time to arrange payment of the balance. If another buyer comes along and purchases the property despite the existence of the private contract, the first buyer can claim double the amount of the deposit back. If the buyer fails to complete the sale, the deposit is forfeited.

Pay the deposit into an escrow or bonded client account, where it will stay until the sale is finalised. The estate agent will probably have a standard contract available which you should have your lawyer read and comment on.

The contract you sign should identify the property and the seller and buyer. It should state that the property is sold free of all charges, liens and mortgages. Before signing, your lawyer should check to make sure that no back taxes are owed on the property and that its original registration is in order. Back taxes are checked with Hacienda or the Town Hall and are the only debts not listed at the Property Registry.

If you are buying the property ‘off-plan’, make sure the contract states that the payments are deposited into an escrow account. This is usually a little more expensive but it means that your funds are secure if there are problems.

Power of Attorney – If you are not likely to be in Spain to sign the contract or conclude the purchase, a general power of attorney is frequently used to appoint a legal representative in Spain. The document is in a standard format that lists the actions that can be carried out by the holder – including buying and selling property. A Notary can prepare the relevant forms and will print copies for you, retaining the original document in his offices. You will need copies authorised by the Notary to use the power of attorney at a bank or during a property sale. The only document required to establish power of attorney is a national identity document or passport of both the ‘giver’ and receiver’. The procedure will cost approximately 60 euros.

The Escritura de Compraventa – Assuming that the private contract is in order and that the buyer has secured the funds to complete the transaction, the sale is completed by signing the Escritura de Compraventa in the presence of the Notary. The Escritura de Compraventa does not guarantee your title to the property until it is registered at the Property Registry (making it an Escritura Publica, a public document).

Once registered, the document is returned to the Notary, where it is kept on file. If you need a copy you can request one from the Notary who will produce an authorised copy. The deed should be registered within a few months and your lawyer will usually ask for a sum of money in advance to cover the estimated taxes and fees, and will either bill you for the remainder or refund you the overpayment once the deed is registered.

Do not confuse the Notario with a lawyer. The Notario is a public notary and an official of the State who ensures that contracts are legal. He does not verify or guarantee the accuracy of the statements made in the contract. You still need a lawyer representing your best interests.