How to Buy the Best Luxury Homes in Malaga

Malaga has become known as one of the fastest-growing luxury property markets in recent years. This city and its surroundings have attracted investors worldwide due to its desirable climate, rich cultural and gourmet offerings, and a blend of stunning beaches and mountain landscapes. So, are you thinking of buying luxury properties in Malaga? Are you aware of the steps or how to proceed? This comprehensive guide will offer excellent tips and advice on investing in lavish houses in Malaga. Continue reading!

Step-by-Step Guide to Buying a Luxury House in Malaga

When purchasing a luxury home, it is essential to understand the procedures you must follow, the time and money required and to get a real estate lawyer's opinion.

Step 1: Consultation With a Real Estate Attorney

Consult a real estate lawyer to guarantee that your purchase is made securely and in accordance with Spanish legislation. The lawyer can represent the buyer in signing important documents by having a power of attorney, such as the purchase contract and the property's title deed. 

Step 2: Obtaining an NIE Number

To buy real estate in Malaga as a foreigner, you must get a Foreigner Identification Number (NIE), which the police provide. The NIE is a tax identification number needed to conduct financial transactions in Spain, including purchasing property, establishing a bank account, getting a phone number, etc. 

After obtaining your NIE, you can proceed further with the purchase of a property in Malaga. 

Step 3: Create a Spanish Bank Account

Opening a bank account in Spain is vital to purchasing a property, mainly for legal and practical reasons. However, it is not compulsory to have a bank account in Spain to purchase a property; having one can simplify your life and help with some parts of the procedure. 

For instance, signing contracts after the purchase with utility companies for water, electricity, and internet is common, and having a local bank account can streamline these procedures. Moreover, creating a bank account in Spain can be more practical, prevent payment delays, and make paying annual taxes or other property-related obligations easy.

These two factors are essential to begin buying property in Spain. It is crucial to note that many people have lost the property they were looking for because they did not have the documentation done in advance. 

Step 4: Employ Due Diligence

Due diligence is vital to safeguard your interests and ensure you are making a well-informed decision. Before making a purchasing decision, you must examine the property's financial, physical, and location state. It is critical to guarantee that you are receiving what you paid for and avoiding costly complications in the long term. For this, you need a real estate lawyer. 

Step 5: Finalisation of The Property Purchase

Check out the following three main stages for the process of buying and formalising a property in Spain: 

Reservation Agreement

The reservation contract is a confidential agreement between the buyer and seller that helps safeguard the property and remove it from the market for a specific time. It offers an opportunity to spend time before committing to more positive agreements. For resale properties, the buyer typically pays the seller around 1% of the purchase price at this point.

Private Contract

A private contract is an essential legal document that lays out the conditions of a real estate transaction between the buyer and seller. A 10% reservation fee is required, and it typically takes two to three weeks.

This essential document organises the binding commitment between both parties. Make sure this contract is comprehensive, complete, and clear. In this private contract, penalties can be agreed upon in case the buyer decides not to proceed with the purchase. 

Notarial Public Deed

In Spain, the final step of the public transfer of ownership and title to a property is signing the deed of sale before a notary. This process of transferring the deed into a public document offers truthfulness and legal confidence to both the buyer and the seller and allows for its next registration in the Land Registry. 

Step 6: Land Registry

The property must be formally registered in your name, which is the final process. By doing this, the buyer can get essential advantages such as

It offers legal security, which frankly implies that you are the sole and true owner. It also prevents scams or third-party claims. 

It makes it easier to prove ownership if you decide to sell the property in the future.

It prevents higher expenses if the deed is registered at a later date. It is easier and less expensive to do it immediately.

The public deed of sale must be signed before a notary is presented to register the property in the registry. This procedure is simple and costs a fair amount, depending on the property's value.

Conclusion

Investing in luxury homes in Malaga is an excellent way to secure and risk-free your money. Remember, however, that it should always be done knowledgeably with the help of a real estate attorney to prevent possible fraud.

So, if you are considering buying or are seeking to enjoy villa luxury in Malaga, please contact Solx Properties. They will advise you legally and guide you in the right direction.