Property buying guide in Tenerife.

THE ESTATE AGENT

Buying a property in Tenerife is a very simple process providing you deal with the right people throughout the transaction.Normally the first contact in your property search will be THE ESTATE AGENT. It is sensible that you work with a reputable agent who makes you feel comfortable and appeals to your own character. The agent's work in Tenerife is much more diverse and extensive than in other countries. It is their job not just to find the right property for you, but also to ensure that any property in their portfolio is free of all debts on signing over and that the title deeds are totally clear of any encumbrances.

THE PROPERTY GALLERY S.L. is an independent Estate Agent offering a complete service to clients.
We are a family business well established in Tenerife since 1997 and with an office in the South of the island. We have a multi-lingual team at your disposal. We speak English, Spanish, German, French & Romanian.
We believe in giving a very comprehensive friendly service including preparation of purchase contracts, helping you find the right mortgages lender, currency company (in case your money are not in Euros), and of course as a go between you/your lawyer and the seller finalising the transfer and registration of clear and unencumbered freehold title deeds.
Following completion we offer clients after sales service, such as: building contractors, various insurances, security alarm etc.

INICIAL CONTACT - YOUR PROPERTY ENQUIRY.

On meeting a client for the first time the Property Gallery sales advisors will listen to the requirements of the buyer, i.e. size of property, area preferred, price range, proximity to schools, beach, shops, etc. We will then spend as much time as necessary finding and showing the properties that meets the criteria. The one thing the client can be assured is that he/she will receive total honesty and no hassle or pressure. We also collaborate with other agents, therefore if we don't have the right property on our portfolio we search our MLS (multiple listing service) for more options.

PURCHESE CONTRACT

Once a property has been decided on and price agreed then A PURCHASE CONTRACT will be drawn up between the seller and buyer by our recommended legal advisor. This will contain details of both parties, full description of the property, sales price, method of payments, various guarantees, costs involved in the transaction and stipulations regarding payment of penalties for non-fulfillment of the contract by either party.
It is normal practice that the contract will state that on signing the contract a 10% holding deposit will be required, and the balance payable on signing the title deeds.
The Property Gallery strongly recommends to use a legal advisor, the contract is in Spanish and is to be signed by both parties, with a translation in English or German .

Unlike in United Kingdom all title deeds in Tenerife are prepared by a NOTARY.

NOTARY & CHARGES

The Notary ensures that the deeds are drawn up correctly, have been translated if necessary, that the property in question is free of all debts and encumbrances, and that the purchase price (or agreed proportion) has been paid to the vendor.
The buyer and seller will sign the deeds in front of the Notary, who will then sign the deed him/herself as witness, arrange for collection of the various taxes and fees, and then send the deeds for registration in the new owner's name at the Land Registry office.
In addition to the purchase price of the property there are various OTHER CHARGES to be taken into account. There is a one-off payment at the time of signing the deeds of approximately 8 to 9 % of the declared value of the property. This is made up of the transfer tax 6,5 - 7% (depending if the property is new or resale), Notary fees, Registration fees, Legal fees and Plus Valia Tax. There are then the general annual running costs of the property to be considered - e.g. electricity, water, rubbish collection, community fees, rates, etc. These vary from complex to complex and size of each property.

Your lawyer will take charge of the utility bills to be transferred into the new owner's name after the Notary signing has taken place and usually arrange for them to be paid by standing orders with the buyer's bank.

LAWYERS - LEGAL ADVICE

The Property Gallery S.L. work with many established local lawyers to ensure that all the legal requirements and documentation of a purchase is fulfilled. Please send us an email if you need assistance with property legal advice. info@thepropertygallery.com.

POWER OF ATTORNEY

If you are buying the property in joint names you may also want to consider giving a power of attorney to each other. Owners often do this as a precaution to avoid find them self in a situation whereby one owner is unable to travel, perhaps due to work commitments or illness, and both are needed to sign official paperwork. Again the Power of Attorney is signed in front of a local Notary and your lawyer can organize this for you.

SPANISH WILL

One other document to be strongly considered is to prepare and sign a SPANISH WILL, which is necessary to cover your assets in Tenerife. This is one thing that many put off doing, perhaps it is too morbid or depressing to contemplate, but when you own property in a foreign country it is really the MUST thing to do. Your lawer can easily organise this for you to be signed in front of the local Notary.