Normally, unless an immediate payment of the full purchase price is made, a private contract of purchase is drawn up. This contract would contain the details of both seller and buyer, the legal description of the property, purchase price, completion date, possession date and payment dates. At the time of signing the private contract, a payment on account of the purchase price is always made which is generally 10% of the agreed purchase price (this can vary according to the terms of the sale).

When the purchase is complete and price is paid entirely, the seller will give the public deed of conveyance (Escritura) to the buyer, free of all debt and charges. This deed is issued before a Spanish Notary and is passed from the notary to the tax office to be assessed for Transfer Tax if the property is a resale or second hand property. If the property is a new build then it will be assessed for Stamp Duty. It is then given to the Land Registry to insert the new owners details.

New properties which are purchased off plan are paid for over the construction period, and all payments on account before finishing must be guaranteed by a bank or insurance company. If the property is not finished by a certain date, a buyer has the right to reclaim the monies paid, plus interest.

Additionally, the law here ensures the property developer must arrange a ten year insurance policy with respect to any basic building defects with the buyer as beneficiaries.