Rent to buy option in Spain

Avocado Homes are a Real Estate Agent who put their services and care at the forefront of their clients, we focus on selling and renting properties that include rent to buy options.

Rent to Buy is a type of agreement where a tenant rents a property with an option to purchase it later at an agreed price. The tenant pays an agreed monthly rent, all of which is applied towards the purchase price of the property. The agreement outlines the terms and conditions, such as the length of the rental period, the purchase price, and any fees involved.

The purpose of the rent to buy option is to provide the tenant with a period of living in the property, with an agreement to purchase the property at a date agreed between buyer and seller.

From our office on the Golden Mile Marbella, we offer our clients, listing services, advertising services, rental services and full relocation services.

Our fees are structured to ensure that sellers are not paying any more than the standard 5% + IVA as charged by most real estate agents in Spain. For exclusive listings, Our fees are reduced, and our service increased.

Our rent to buy option fees

Listing properties, free of charge

Advertising properties, free of charge

Sales commission 5% + IVA of the sales value.

Our fee is a minimum of 60% plus IVA of the 5% commission once the initial payment is paid at the start of the contract and the equivalent of one month’s rent at each 12-month anniversary thereafter until sold at notary.

All fees are deducted from the 5% plus IVA commission of the sales value when contracts are finalised at notary.

Legal support

Avocado Homes do not offer legal advice regarding buying or selling properties using a rent to buy contract.

To assist our clients, we are proud to work with Martinez Echevarria abogados independent legal and tax advisors, supporting our buyers and sellers with the legal aspects of a Rent to Buy contract. buying a property is one of the most exciting but stressful and complicated transactions that you are likely to undertake. Having an experienced professional legal support team is an absolute must to ensure that the contract is accurate and legally binding.

Martinez Echevarria abogados provides both legal advice as well as litigation services in Spain, Portugal and Turkey for companies, families and individuals The firm was founded in 1983, striving for quality and professional excellence. Today, these cornerstones on which the law firm was built remain as strong as ever. Martínez-Echevarría has always been known for our strong commitment to achieving our clients’ objectives and meeting their expectations.

Martínez-Echevarría is currently comprised of just over 250 professionals and can be considered a modern office, fully adapted, and prepared to meet the most demanding needs of national and international companies operating in Spain and Portugal. In addition, our private client department does not forget those who, despite not being in the corporate world, require quality legal services adapted to their needs for their family and personal matters.

Include in our package

• Preparation of a total cost estimate for the transaction, including taxes, notary and registry fees, etc.
• Meeting with a lawyer to explain the process and cost involved (notary and registry fees, taxes, NIE, etc.).
• Meeting with an accountant to advise on fiscal obligations and the different Spanish community taxes.
• Checking for mortgage charges and outstanding utilities: land registry and building administrator searches; habitation certificates, building licences, etc.
• Checking the ownership status of the property.
• Searching for liens, charges, or encumbrances with the appropriate land registry.
• Rent to buy contract for purchase-deposit-reservation and assistance at the signing.
• As necessary, receipt of funds into our client account and onward transmission.
• Preparation of the title deeds and assistance with the signing at the notary’s office.
• Order and receipt of cheques for completion of the transaction.
• Payment of taxes and registration of the title deeds with the corresponding land registry.
• Change of title and setting up direct debits for utilities (water, electric, gas, etc.) local rates and taxes.
• Application for, and payment of, Plusvalía (local rate) tax.
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Additional services available not included in our package

• Applying for and obtaining N.I.E. numbers.
• Power of attorney
• Full structural surveys.
• Non-resident tax.
• Resident tax.
• Building legalisation    

Financial support

Mortgages and currency transfers

Avocado Homes do not offer financial advice, to assist with the financial aspects of the contract they have partnered with several leading independent mortgage brokers with advisers across Spain, and several currency transfer companies to assist with the purchase of property.