How do I pay the notary in a property purchase contract in Spain? This process varies in detail whether the buyer is buying with bank financing (mortgage) or without financing.
Process Without Mortgage
If no financing bank is involved, lawyers or gestorias handle this process. The buyer pays the total amount of the additional purchase costs. These consist of notary fees, land transfer tax, fees for the entry in the land registry. The costs are deposited in the escrow account of the lawyers / gestoria. These service providers process the notarial deed (Escritura) with all offices and authorities and then prepare a billing report for the deposited amount.
Process With Financing
In this case, the entire additional purchase costs (land transfer tax, notary fee, land registration fee) are deposited in the buyer’s account with his financing bank before the notarial deed of sale is signed. The bank, or the gestoria (administration office) commissioned by the bank, informs the buyer of the total amount. On the day of signing, the buyer agrees to transfer the total amount to the gestoria, which will take care of the entire process after signing (payment of notary, payment of land transfer tax, entry of mortgage and ownership in his name).
When the process is complete, you will receive the original documents (notary deed of sale and mortgage deed) and a billing from the financing bank.
Both, gestorias and lawyers, take a fee for this processing.