Real estate in Gibraltar

Gibraltar real estate scenario is booming and the properties are in high demand. There are a number of reasons for that. In the first place, space is extremely limited. Secondly, many of the newer developments fall into the high quality, luxury category and are sought after by both locals and outsiders alike.

And finally, thanks to a wonderful climate and favorable tax situation it is attractive to those wishing to relocate themselves and their wealth. There are more than a dozen entities acting as real estate brokers in Gibraltar. However there is a series of steps you can expect to follow when purchasing a property in Gibraltar.

Purchasing property in Gibraltar follows the following procedure:

Negotiating a Price

The first step to buying a property in Gibraltar will involve negotiating a price and drawing up a pre-contract. This contract merely reserves the property and does not legally bind the seller to follow through on the sale, nor does it bind the buyer to go through with the purchase. A reservation fee of around 2 percent of the property price is usually put in escrow as part of this contract.

Financing

Once the property is reserved, the purchaser will prepare financing. The following fees should be kept in mind:

• Stamp Duty - This is levied at 1.26 percent on the property itself and an additional .13 percent on any mortgage involved.
• Deed Registration - These fees, which involve registering the deed with Gibraltar's Supreme Court and again with the Land Titles Registry usually don't amount to more than 100 pounds sterling, if that.
• Legal Fees - These depend on the lawyer.

Drawing up the Contract While the buyer is organizing financing, the seller's lawyer is responsible for drawing up the first draft of the contract, to be revised as necessary until both parties agree. Signing the Contract When the purchaser signs the aforementioned contract, approximately 8 percent of the property price will be added to the 2 percent already in escrow in order to make a 10 percent down payment.

At this point, both buyer and seller are legally bound to the sale.

Source: www.andalucia.com