roperty buyers
Guide
This article is intended
as a general guide to
buying real estate in
The Canary Islands.
It has been compiled from the
knowledge and experience of a
number of professionals involved
in the selling, buying and
conveyancing of property in Spain,
but it should not be taken as a
substitute for proper legal advice.
It is intended only as an
explanation of the system, customs
and practice which you will come
across, should you be interested in
buying a home on the islands.
DECIDING THE LOCATION
You need to decide whether your property is
intended for holiday use, longer term visits, or
whether you intend to live here year round.
Your choice of location should take your
needs into account, such as schools, medical
services and recreational outlets.
CHOOSING THE PROPERTY
You need to know a great deal more about
your property than you would if you were just
spending a couple of weeks there. If there is
a community association, ask your
neighbours if it is well run. Ask about the
community fees - don’t forget that if you are
in a Community you are legally obliged to
pay them or you could lose the property.
BUYING THE PROPERTY
The first essential thing before you part with a
penny is to make sure that the person selling
you the property is entitled to do so. Any
agent worth his salt will have carried out a basic
search and will be able to show you that this is
correct. Your agent will be able to supply you with a
list of suitable Lawyers to act on your behalf, the
British Consulate in Las Palmas will provide a suitable
list on request, if required. Your lawyer needs to
check out your intended property thoroughly.
The process is not dissimilar from the UK and a
check of legal title will be made through a search
in the local Land Registry Office which will also
indicate if there are any mortgages or charges
against the property. If you are buying a plot of
land, the lawyer will also check if you can obtain
permission to build on the land and what size and
type of property you can build; there are zoning
controls on this island as well as anywhere else and
an old document presented to you pertaining to
be planning permission may well have changed in
the interim period. Once you have been assured by
your lawyer that all is in order, you will need to sign
a Contract of Purchase raised by a lawyer, and pay
a deposit which is usually 10% of the intended
purchase price; this deposit is normally held by the
lawyer who has been appointed to arrange the
signing of the Title Deed.
The contract will state the terms and conditions of
the sale and will state a specific time for completion
of the transaction when you must produce the
balance of the price. If for any reason you decide,
up to this completion time that you cannot proceed
with the purchase, you will forfeit the deposit paid,
but if the seller changes his mind, he must return the
deposit to you in full, plus a compensation payment
for damages. Obviously if a lawyer is holding these
funds, there’s no problem in the purchaser’s deposit
being refunded.
The next step is to complete the transaction by
making the outstanding balance of payment and
signing the title deed, which is known in Spain as the
Escritura; this must be done in the Notary’s Office.
The Notary’s task is to ensure that all of the legal
documentation is correct, he will also carry out a
Passionate
Professional
In Property
Brent Hart, A.R.I.C.S Chartered Surveyor
Exclusive Property Sales & Project Management
search in the Land Registry Office on the day of
signing to check the current status of the property or
land, (and will require the last annual rates receipt
from the council in which the property is situated),
that this is up to date as well. It is essential to ensure
that your lawyer has current receipts for all other
payments such as water, electric and community
charges, as debts such as these in Spain are levied
against the property and not the owner. When in the
Notary’s Office, you will be asked to produce your
passport as evidence of identification. You will also
be advised to obtain a NIF number, Numero
Identificación Fiscal, which your lawyer can arrange
for you.
PAYING THE PRICE
If you are not a resident in Spain and are buying
property or land it is advisable to bring your money
from abroad to complete the purchase, it is simple
to open a non-resident account in a local bank,
and your estate agent will normally help you with
this. You can then transfer your funds from your own
bank in the UK, to this new account. On the signing
of the new Title Deed your cheques for payment
will be shown to the Notary and included as part of
the documentation of the deed.
They must be inscripted with details of the
property of land to be purchased, or have an
investment certificate from the issuing bank
attached. The Notary will also require you to sign a
Spanish ministry form, declaring that the investment
has been made. It is also possible when purchasing
from a non-Spanish resident, to pay the completion
funds abroad in any currency. In this case, the
deed will state an equivalent amount in Euros as
this gives the value in which the transmission tax
(stamp duty) is calculated. You will have to
produce more than one cheque as you will be
liable for capital gains tax. In this situation a sum of
3% calculated against the value declared in the
title deed will need to be retained and paid to the
Spanish Tax Authorities.
Construcciones
CASAS YAIZA S.L.
With over 30 years experience
we ensure clients recieve reliable,
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for your peace of mind.
Long established specialist in all
Constructors
types of general building works
and founders of
from new villas to alterations,
the company over
extensions, refurbishments
3 generations
Including swimming pools,
patios & exterior stone walls.
Sale of Exclusive Properties & Design and Build on prime plots
C/ Lituania No. 1 - Playa Blanca Zona Industrial Urb. Montaña Roja
TEL: (00 34) 636 708 136 • EMAIL: [email protected]
TEL: (00 34) 928 518 076 • EMAIL: [email protected]
WORKING TOGETHER TO OFFER YOU THE BEST SERVICE
94
| January 2015 | The Gazette