What this means is that the vendor cannot legally sell to another party whilst the option is in force, also that you must follow the contracts terms and meet any stage payments (if applicable) and complete the purchase within the stipulated time frame. If you do not comply with this then you will usually forfeit the deposit paid unless the vendor is to blame for any delays or the properties documentation is not in order.

Your lawyer will peruse the option contract and ensure that the terms and conditions are reasonable and legal.

Deposits vary but are usually 10-20% of the purchase price for a resale property and around 25-30% for a new property.

It is advisable to make arrangements for a deposit to be available on the island during your visit so as you can secure a property should you wish. This can be achieved by instructing your home bank that you may be opening a Spanish bank account and be requesting a transfer to it and finding out their required procedures.

In some cases the vendor will accept a small reservation fee on the proviso that the balance of the deposit will be sent within a few days of your returning home.

The option contract will contain the following;-

• Details of the buyer and seller.
• A legal description of the property.
• The purchase price.
• The form of payment and currency to be used in the transaction (banker’s draft, cash, etc.)
• The completion dates and penalty clauses if these dates are not met.

Your lawyer will Liaise with the vendors (and mortgage company if applicable) and carry out the following work on your behalf;-

• Obtaining a copy of the deeds (Escritura).
• Ensuring the title of the property is unencumbered by making a search for debts at the registrar’s office.
• Checking that all I.B.I (local council rates) have been fully paid up to date.
• Collecting the most recent electricity & water receipts.
• Checking that the community payments are up to date (if you are purchasing in a complex or a building that has communal areas or pool there is a small monthly fee payable for their maintenance.)

The originals of these documents are necessary on the day of completion at the Notary's office as the Notary will refuse to notarize the transfer deed unless it has been clearly stated that you were already aware that some receipts were missing.

Arrangement of paperwork for the Notary appointment

Representation at the signing of Deeds in front of the Notary

Collection of the Escritura (Deeds) from the Notary

Payment and calculation of the relevant taxes.

Registration of the property both in the Registrar and the local Council

In short all of the work necessary to ensure that the property is registered in your name.

Any additional work required will be charged at (the Spanish equivalent of) the Law Societies rates.