If you decide to buy a property or business and after a 10% deposit is received by INTEREALTY (and held by us) the seller is obliged to take the business off the property market until the agreed completion date when the balance of the agreed sale price must be paid. This period should normally be one month, however it is sometimes possible to persuade the seller to agree to keep the property/business off the market for a maximum of two months - this is the exception rather than the rule.

During this period INTEREALTY will arrange for the existing contracts and licenses for the property to be checked by either our legal negotiator (gestor) or by a legal firm named by the buyer. A search is made to confirm the authenticity of the documents and if there are any outstanding debts incurred by the present owner. They will also prepare fresh contracts for the buyer during this period. On the date of completion all interested parties will come together at a mutually agreed place, date and time and within the presence of a qualified legal officer to sign the fresh contracts and to pay the balance of the agreed sale price which will always include the INTEREALTY commission. If you wish to buy Leasehold property (which is by far the most popular method of buying small businesses on the Costa and called 'Traspaso') you will be required to pay a monthly rent to the Freeholder in addition to the purchase price of the business that you are buying from the current Leaseholder. It is a Spanish legal requirement that when buying a Leasehold business three month's rent must be paid in advance. One month's rent is held by the Freeholder against any rent default in the future and the other two month's rent is paid by the legal negotiator directly to the Spanish Government as a Bona against nonpayment of taxes. This sum must be allowed for over and above the sale price.

When a Lease is sold-on, the Freeholder is allowed, if he chooses, to increase the monthly rent by up to 20% - few do. The Freeholder is also allowed to increase the rent each year, but only up to the rate of inflation. The Freeholder must also be paid 20% of the sale price received by the outgoing Leaseholder. There are certain licences and permits that may have to be applied for in order to legalise yourself and your new business. This work can be done by the legal negotiator (as above). Such documents are:

Ø Your National lndefication Number in Spain (NIE)
Ø Application to join the Spanish National Health System
Ø Application for a Resident's Permit
Ø British Consulate Registration
Ø Opening Licence Application
Ø VAT Registration (IVA)
Ø Food Hygiene Certificate

A provision in your budget of about £1,500 should be allowed to cover these legal costs. As we have said before, all of the work is carried out by Interealty or a recommended lawyer. All you have to do is choose which business suits you !!