Purchasing 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 organising 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.
Remember Gibraltar claims to have more lawyers per capita than anywhere else in the world. Therefore, finding one to help you with your property purchase should not be a challenge. A local lawyer will ensure that your interests are protected at every stage of your property purchase.
