Previous to the sign... | Second step

Once you have chosen your property and reached an agreement on price and conditions with the seller, you might state those conditions on a kind of private contract subject to a deposit or an option to buy. If so, there are certain aspects, which shall be taken into account.
Before signing any private document it is convenient to check the situation of charges of the property, by obtaining an extract from the Land Registry. It will certify thus the ownership of the dwelling and you will also know whether there are land charges or encumbrances on it.
All purchase details stated on the contract should be as accurate as possible, as this document represents both parties commitments (names and surnames, corporate names, complete description of the dwelling, type of contract, agreed price, way of payment...).

Legal advice | Third step

Considering the importance of a purchase it could be advisable to contact a solicitor, who can give you advice on the contents of the contract.

As above mentioned, the first step to take before purchasing is to check the ownership and charges at the Land Registry. You should apply for an Extract, which certifies that the seller is the real owner and also states any mortgage loan, lien or encumbrance on the property.

This search at the Land Registry gives you safety as buyer. Extracts should be obtained if you apply for a mortgage loan or even if not. Nevertheless, should a bank be involved, it will require it and, if you wish, it will manage the search itself.
Should the property acquired be encumbranced with a previous mortgage or any other charge, those must be cancelled by the seller, both financially and at the Land Registry. This can be done before signing the purchase Deeds or in the same act. It is important to emphasise the above, because should the purchase be completed without having cancelled charges, then you will be liable of the costs.

Once the binding contract is accepted, both parties shall sign the Public Title-Deeds. To do so, certain documents are required: the owner's previous Title-Deeds and the last Rates receipt.. Purchase and sale conditions should also be stipulated. They use to be the same as privately agreed, if so was done.
Normally both the purchase and mortgage Deeds are signed in the same act before the Notary Public. You should check if the latter contains all statements agreed with the bank on the binding contract.
It is advisable that the Notary Public also checks that the information about ownership and land charges has not changed since the first Registry extract was obtained.
Documents required for completion at the Notaries:

BUYING PARTY
Personal identity/tax numbers
Marriage articles, if necessary

SELLING PARTY
Personal identity /tax numbers
Previous Title-Deeds
Last Rates bill paid
Certificate, which certifies that all community fees are up to date.
Most credit entities grant the loan at the signing of the purchase Title-Deeds, so that you can complete payment to the seller.
Under the Spanish law, the mortgage guarantee only becomes effective as Title-Deeds have been lodged at the Land Registry. Therefore, both the mortgage and purchase Deeds should be inscribed at the Land Registry after taxes have been settled.

Notary, consultancy fees | Sixth step

Land Registry

For resales:

Transfer tax (ITP): Real rights

For new promotions:

Value Added Tax (VAT: 7%): for those private housing partly financed by government and built by promoters, the tax is 4%. In the Canaries, this tax is named IGIC and in Ceuta and Melilla, it is IPSI.

Stamp Duty: in those cases where VAT is required, the tax is 0,5% in most regions in Spain and 0,5% in certain areas subject to a privileged jurisdiction.
All taxes are based on the value stated on the Title-Deeds.
After the purchase, municipal capital gains should be settled generally by the seller.

1.-Banking

Banks charge a commission, which includes all costs resulting from the mortgage granting: it is named the "Opening commission". It is a percentage on the amount borrowed, which the borrower should pay as the loan is paid into the account.
Commission on early cancellation is a percentage on advanced payments. It should be settled just as the loan is early paid off. Under the Spanish law, on those mortgages for which changeable interest rate is stipulated, the commission should not be over 1%.
All credit entities should notify these percentages to the National Spanish Bank.
Further costs do not depend on the bank:

2.-Valuation

It is done by a third entity in order to establish the market value of the property.
For habitual properties, banks do not use to lend over the 80% on valuation. For other properties, the amount borrowed does not exceed the 70%.
The valuation cost uses to be around 150-250 Euro. This payment is required even if the mortgage is not granted.

3.-Granting

As the purchase, the mortgage loan should also be granted before the Notary Public and the Deeds lodged at the Land Registry. Both Deeds use to be signed at the same time. Notary and Registry fees are also required for a mortgage loan.

4.-Stamp Duty

It is based not on the amount borrowed, but on the Mortgage Liability (this figure results from adding a percentage on interests, costs and expenses to the amount borrowed). The mortgage liability fluctuates between 170% and 300% on the amount borrowed, depending on each credit entity.