How do you pay the purchase price at the notarial transfer?
The payment at the transfer.
Many things are different when buying a house in Spain than when buying a house in the Netherlands or Belgium. The payment at the transfer is one of them.
The Dutch or Belgian notary.
In the Netherlands and Belgium you transfer the purchase price to the third party notary's account one day before the transfer. After signing the deed of sale, the notary transfers the purchase price to the selling party. If there is a mortgage, the notary will also pay the mortgage from the purchase price and then transfer the remainder to the selling party.
Even if there are debts and items still have to be set off, the notary will set them off and deduct them from the purchase price, which he will eventually pass on to the seller. In the Netherlands and Belgium, the notary thus takes care of a large part of the work and you no longer have to worry about it. We do not have this luxury in Spain.
The Spanish notary.
To start with, the Spanish notary does not have a third party account to which you can deposit the purchase price. Also the Spanish notary doesn't interfere with outstanding debts and mortgages that still have to be paid. He will report if there is a mortgage or if there are debts, but how these are repaid is beyond his control.
Payment of the purchase price goes directly to the selling party.
Because in Spain the notary does not interfere with the payments you will have to pay the purchase price directly to the seller. You can make the payment by bank transfer or by cheque guaranteed by the bank.
Payment by bank cheque.
In Spain, payment by bank cheque is the most common method of payment for real estate transactions. In order to be able to unsubscribe a bank cheque you will need to have a Spanish bank account. You will need a Spanish bank account to be able to debit the costs of water and electricity in the future.
How to pay with a bank cheque?
On the day of the transfer you go to your bank to pick up the bank cheque before you go to the notary. This cheque must show the exact amount you have to pay at the notary's. It is not possible to change this cheque. Always make an appointment with your bank a few days before the transfer to discuss the details. Make sure you have sufficient balance in your Spanish bank account so that the cheque can also be debited. The bank does charge a fee for the cancellation of a bank cheque, but it is the safest way to pay for your property purchase in Spain.
The purchase price is paid by bank transfer.
Another option is to pay the purchase price by bank transfer directly to the selling party. This way of paying brings with it a risk. Payment will have to be made before the transfer and the seller already has the money in his account before the notary has signed the deed for the transfer. If something unexpected does go wrong at the final stage, the purchase price is already in the seller's account. It can then become difficult to get this amount back into your account.
On the other hand, the purchase price will only be transferred to the seller after the deed of sale has been signed. This will not be accepted by the seller. He will then transfer the property to you without any payment having been made.