Tenerife Property - The Buying Process

By
Services for Real Estate Pros with Cancasa

There are many advantages to living in Tenerife which is why a lot of people relocate there from the United Kingdom and many other colder Northern European countries.

The predominant enchantment to Tenerife is the amazing weather, but there is a great deal more to Tenerife than simply the weather. There are terrific mountains, pine forests, and the lower cost of living.
Locals and visitors also refer to the island as “The Island of Eternal Spring” and the proof of 12 months round moderate temperatures is easy to see.

More and more people are leaving their home countries for the sub-tropical local weather here. Thanks to the quality of life, and the dream of life in the sun, properties in Tenerife are in high demand.
This is more evident in the popular resorts like Los Cristianos, Las Americas, and Los Gigantes.

However, the way property is transacted in Spain and Spain’s islands are quite different. This is why it’s critical to do your research well in advance. It's important to make sure you work alongside specialists who are unbiased and can assist you with your property search.

How Is Property Sold

Most properties in Tenerife are offered by means of estate agents. When you see a property you like or being advertised, then the chances are that it's listed with an agent. If you choose to find out more about the property, then contact the estate agent and put in an offer.
Property owners in Tenerife usually have an idea of what their property is worth, however, you can ask the estate agent to negotiate the price. A lot of properties are offered already furnished but you do need to know that there is no formal system for surveying, so you want to check out the property and come to your own conclusion as to what the condition of it is.

Always make sure you follow good advice when buying property in Tenerife.

Property Purchasing Procedure

If you put in an offer and it’s accepted, then you’ll need to pay a deposit which is normally ten percent. If you reach this point, then you should get the services of a lawyer who will work in your interest. As for how you'll need to pay a lawyer, it depends on the property value, how much work is involved, and the level of expertise the lawyer has. Generally speaking, you can expect to pay about £2,000.

More about Tenerife Property.

What Happens After I Pay A Deposit

After paying the deposit, you’ll need to follow it with a nota simple which your legal professional will arrange. It is a document that states whether or not the property has matters connected to it, such as a mortgage, charges, or embargoes to title to name a few. If everything checks out, a private contract will be drawn up through the legal professional and you’ll need to sign it along with the seller.

The contract will be drawn up in Spanish, however, your lawyers will translate it for you so that you can fully understand what you're signing. If you’re still uncertain what you are signing, then do not sign anything.

Be aware that if you sign the contract and the transaction doesn’t go through, then you may lose your deposit.

The Completion

The transaction should be executed between 4-6 weeks and the local Notary will complete the process by verifying the transaction’s terms and conditions. Your lawyer and the seller’s lawyer or the representatives of the two, will need to be present. You’ll be asked for a banker’s draft which will cover the price of the property.

If the vendor of the property isn’t a resident, then you’ll need to pay the tax authorities three percent of the property price. Other than that, everything is paid by way of banker’s draft to the vendor.
You have to be cautious when transferring cash within Spain. This is due to the fact banks can charge a lot of money. It is honestly very common for fees to amount to thousands.

Are There Additional Costs

Your taxes need to be covered. Not only that,  the costs related to the transaction will need to be paid. As for what these costs are, they include:

• Lawyer- About €1,500-€2,500
• Notary- You’ll want round €2,000 for notary and registration fees
• Transaction Tax- The tax depends on what the transaction’s cost is


Before you do anything, make sure you have a good idea of what charges you’ll have to pay.
After all of the above is completed, you'll be a property in Tenerife.

Best of all, the council tax isn’t that much. In fact, it only costs around a few hundred Euros per year. As for your refuse collection, don’t worry because it is gathered regularly, all for around one hundred Euros.

You might prefer to buy property in a community, such as an apartment. If you do this, then be conscious you’ll have to pay quite a number fees. These charges go toward matters like preserving the gardens, taking care of the pool, and maintaining lifts. Those are a few examples of what your charges will go towards.

Is There Anything Else You Should Know?

You must have a Will drawn up. You’ll be making numerous visits with your legal representative and you’ll visit the Notary office at least once. While you are at the office, you have to have a will drawn up or signed. Remember, anything can happen; It's a good idea to get a Will created at the same time.

Also, you’ll want an NIE number, which is easy to get and you need to do it before the transaction is completed. Your legal advisor will inform you when you ought to do it. Other than that, the only thing left to do at this stage is to learn a little bit of Spanish, relax, and enjoy all of what Tenerife has to offer.

Our list of the best Tenerife estate agents will help you get off to a good start. We hope you find this useful and wish you the best in your house hunting.

 

Posted by

Peter Spain

After following the property sector for several years especially in Spain, I came to understand the cycles and all the attendant peaks and troughs that come with it.
I now focus my efforts on helping established local agents with their online presence and visibility. Several Spanish agencies are benefitting from the attention to detail and meticulous research that I provide which forms part of the marketing strategy I offer.

 

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