Buy Real Estate

Purchase of a Property in the Canary Islands

...what are the steps I have to take to buying a property?

The Canary Islands have a special economic position in Spain. These special economic circumstances were introduced as a compensation for the remoteness of the islands.

Papers I need to have when buying a property

...which papers are essential buying a property in the Canary Islands?

If you have decided to buy property in the Canary Islands the first thing you are going to need is a NIF/NIE number (Tax and Identification number). You have to go to a Police Station and ask for the NIE form (Bring your passport). Once you have filled in that form, you can open a Spanish bank account for future payments.

Legal Advice

...do I need a lawyer to buy property in the Canary Islands?

First and foremost, we recommend you to contract a Lawyer when purchasing a property in the Canary Islands to assure a smooth transaction and avoid major headaches.
Ask for a complete estimate before contracting (attorney fees, notary fees, registration fees and taxes).

Estate Agents

...do I need an Estate Agent to buy a property?

Estate Agents often take up to 5% commission for selling a property.
For this reason, many people attempt to sell their property independently.
However, there is added risk to the buyer when buying direct (especially when the buyer is from overseas and has little or no knowledge of either the legal system or language).
While using an Estate Agency is no guarantee, it does afford a degree of protection and certainly will make the whole process easier.
Estate Agents do not normally operate on an exclusive basis and the same property will often be advertised by several Agents at the same time (sometimes at differing prices!).

Offer

...when should I make an offer?

Once you have found your property, before making an official offer, we advise you to give the place a very thorough once-over inside and out. Even if it means arranging another viewing>

It is also a good idea to take a friend or family member along to give an un-biased second opinion. Try to view during the day and at night.

Counteroffer

...is it advisable to make a counteroffer?

If you now find a property which interests you but the price seems excessive, think of what you are prepared to pay and make the most reasonable counteroffer possible. As the buyer you should not make more than one counteroffer otherwise you will lose credibility. Make sure you understand all the inherent conditions of the transaction. Make sure you know all the additional expenses of the purchase before making a counteroffer: wages, taxes, etc.

Buying a new property

...what information must the building promoter facilitate?

1.  Name or trade name of the building promoter, as well as information of its inscription in the Mercantile Registry.
2. Concrete information of the property: location plans of the property, description, net and gross floor surface, services and provisions, common zones, insurance coverage and guarantees.
3. Information of the official Property Registry, in order to verify: That the plot on which the building is going to built is registered in the name of the promoter which is being contracted. That the construction has obtained building permission by the City council, by means of the corresponding concession of license.
4.  Statutes of the Community of owners.
5.  Sale price and mode of payment.
6.  Information concerning the mortgage, if there is a specific mortgage.
7. Form and layout of the contract, with general and particular conditions, pointing out specifically: That the previous expenses that by Law correspond to the seller will not be passed on to the buyer. The right of the buyer to demand the deed and registry and to the election of a notary.

Buying a second hand property

...what information should I obtain from the proprietor?

1. Registry confirmation of the property
2. Last receipt of the tax on Real estate
3. Last receipt of electricity, water, gas.
4. Certificate confirming that the communal expenses are up to date, (if this is not obtained and there were debts, the community can demand this amount up to a certain quantity from the buyer, without prejudicing in any way the buyers right to take legal action against the seller).
5. Last receipt of Expenses of Community.
6. Copy of the Statutes of the Community, registered in the Registry of the Property.
7. In case the property is mortgaged and capital pending, a certificate informing of the level of debt emitted by the corresponding financial institution.

I am interested in buying the property

...how can I formalize my commitment to buying a property?

We can resort directly to a private contract of transaction, or what is more usual, sign a reservation contract:

• Make sure that the seller is in fact the owner of the property (Escritura & Catastro).
• Include the price of the property and the deposit already paid.
• Include the final purchase/sale date before the notary.
• Include that the property is sold free of charges, mortgages, Taxes, Community Fees, that utilities are up-to-date and that the property is not rented.
• A deposit of approximately 10% is paid after signing the private contract.
• Note that this is non-refundable, if you pull out of the sale, you will lose your deposit.
• On the other hand, if the seller pulls out of the deal, he must pay back double of the initial deposit.