The simple answer to this question is yes. You should have funds available to pay a deposit if you find a property you wish to buy. In Spain, unlike in the UK, there is no sale until there's money on the table.

Normally a holding deposit of €3000 will be enough to take a property off the market whillst you organise your finance and carry out a structural survey (if required). You will sign a private contract with the owner and a date will be fixed or you to pay the next stage of the deposit which will be 10% of the purchase price (less the €3000). These dates have to be adhered to or you risk losing the money you have already paid.

If you are having a survey, your solicitor can put a clause in the contract specifying that continuatuion of the sale is subject to survey result. This way if there are serious structural problems your €3000 will be returned and you can walk away.

The 10% depost commits both parties to the sale and is legally binding.

A date will now be set for completion, again this must be adhered to.

Be warned, once you have paid this deposit, it is non-refundable should you decide not to proceed. This would not be the case if, for example, your solicitor discovered a problem with the deeds or the property was found to have a debt against it. If however the vendor pulls out of the sale (for whatever reason) he is legally obliged to refund double your deposit.

We will never push you into paying a deposit, but please remember that if you do find somewhere you're serious about, it is the only way to secure that property. Many clients feel pressured by the whole process and think that they can handle the transaction as they would in the UK. In other words they are reluctant to commit any money until completion. This simply won't work. You have to respect the way the market works in Spain. Remember you are buying in another country and it is up to you to play by their rules not the other way around!

It should also be noted that in general, a property sale proceeds far quicker in Spain than we're used to in the UK. Expect it to take no more than four to six weeks (sometimes less) unless there are contractual problems.