The Estate Agents fees are normally paid by
the vendor and the details of the specific
percentage to be paid will normally be noted in
the Purchase Contract.
Beware, some unscrupulous illegal agents have
been known to charge the purchaser as well as
the vendor for their fees. You may well also find
that the price of your title deed is not exactly the
same as the cost of the purchase, as some sellers
prefer to treat the furnishings and fittings, if they are
included, as a separate item.
REGISTERING THE PURCHASE
Signing the escritura in the Notary office does not
yet mean that you officially own the property. For
the transaction to be complete you must register
the deeds in the Registro de la Propiedad (Property
Registry). When the deeds are taken to the
Registro, the purchase tax of 6.5% of the value of
the property must be paid.
Later the Registro will write to whoever
presented the documents and ask for a second
payment to cover their charges. In addition, a tax
to the Local Authority, based on the increase of
values of land in their area since the property last
changed hands (known as ‘Plus Valia’) is payable.
This is subject to negotiation between the
vender and purchaser. Your Lawyer can get an
estimate in advance of the purchase, so that you
have the funds ready. At the same time, a form
should be entered to the local authority, advising
them of the change of ownership. You should
remind whoever is doing your paperwork about
this, as it is often forgotten.
Residents must alo be tax registered in order to
sell property and avoid retentions, even if they
pay no tax.
COSTS TO LOOK OUT FOR
Other bills which will have to be paid include the
Transmission Tax, the Notary’s bill, the fees from the
Registro and the bill from your Lawyer, will probably
come to about 10% of the purchase price.
Your Lawyer will ask for these funds to be placed
with him before the work is done, as too many times
clients disappeared leaving these bills unpaid.
Non-residents will be liable for property tax, while
residents will pay the IBI assessed by the local council.
However, it cannot be stressed enough, though,
that you should deal in these matters with a
professional person who is well established.
THE COMMUNITY ASSOCIATION
Spain has firm laws on how a Community
Association shall be run, and you can find useful
advice in English on this subject at
www.c-euro.org and
www.spainlawyer.com.
Information about your
Association has to be freely
available to you, as do the
accounts which have to be
published to the members
every year. Belonging to a
Community Association
brings many advantages
to the owner who does
not intend to live in the
property year round,
as you can be sure
that someone will be
keeping an eye on things
when you are away.
Should you be buying a
property on an
‘Urbanisation’ you will
find that there is a
Community Association,
of which you must
become a member.
Each property owner on
the site owns a
percentage of the communal areas, and is
responsible for making a payment to the
Association for their upkeep. You should check
before you buy that your Community Association
is functioning well, how much the monthly
payment is, and whether the payments for your
intended property are up to date. If these
payments are not made the Association can
eventually seize your property, so be careful.
OUTSTANDING BILLS
When you buy a property you become liable
for any outstanding bills for water, electricity,
local rates and community fees. Both the
Electricity Board (UNELCO) and the Water
Company (CANAL GESTION) have forms
which you and the seller must sign, to
transfer the bills into your name.
When you go to
do this you
should check
that all
payments are
up to date.
Local rates are
payable at the
Town Hall. You or
your representative
needs to visit the
‘Oficina de
Recaudacion ’ at the
Town Hall to give them the
form changing the rates
into your name, and
again, checking that all
payments are up to date.
As bills are not sent out for
the rates, property owners
often forget to pay them,
and they can soon
mount up.
Puerto Chico,
stunning recently renovated frontline property
with great sea views on this highly sought after
exclusive community.
2 double bedrooms with built in wardrobes,
modern shower room, living room, amazing
double glazed roof fully fitted kitchen with
airconditioning and automatic opening
rooflights, sea front garden.
Price 280,000 euros.
UK 0044 8006127603
Spain 0034 679 607482
Web site ; www.propertyforsalelanzarote.com
E mail ; [email protected]
Office address Local 15, Park Hotel, Playa Blanca.
The Gazette | January 2015 | 95