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Property Purchase in Lanzarote
Purchasing a property abroad for the first time can often be a bewildering and confusing experience and, if the correct procedures are not followed, it can lead to serious problems, perhaps resulting in disputes over title. However, with proper advice from a company such as us, the entire transaction is relatively easy. As a help to purchasers, we set out this guide to property purchase in Spain. Although we do not recommend that you attempt to complete a purchase on your own, we believe that you should be made aware of what is involved. (Persons, companies or firms resident within the
UK or scheduled territories) (Persons, companies or firms resident outside
the UK or scheduled territories) 1 Decide on the property you wish to purchase. 2 All disputes or liens over titles are registered at the land registry and it is therefore always advisable to ensure that a clear and unhampered title exists prior to any commitment being entered into. This will be checked by your lawyer. 3a If you are purchasing from a Spaniard, Spanish resident, or Spanish company, then you will need to open a bank account with a Spanish bank. This should be done at an early stage of purchase to enable any transfers of money from foreign banks to be received. A convertible euro account is required for property purchase and the necessary bank forms will have to be signed, so that your will be able to make immediate arrangements to transfer the currency. On completion you will be asked to present a certificate to the Notary issued by a Spanish bank, certifying the receipt of foreign (foreign to Spain) currency within your convertible euros account, which is specifically for property purchase to the value of property being purchased as shown in the escritura. This declared value may not necessarily coincide with the total amount being paid for the property, as the full purchase price may include furnishings and it is not required by law to include for their worth within the declared property value. b If you are purchasing from a foreigner (foreign to Spain that is) who is non-resident in Spain, then the full purchase price and any deposits may be paid outside of Spanish territories and the above procedure is not required. 4 Sign a contract for the purchase of the property, and pay any deposit specified by this contract, to the vendor or agent. Most agents or developers will have a standard contract. However, in cases where a standard contract is not available or a purchase is particularly complex and requires a separate contract to be drawn up, your lawyer will represent you. We would always recommend that you deal with a Spanish or an international lawyer, rather than an English lawyer, as the laws in Spain are very different from those in the UK and an English lawyer will rarely be familiar with them, which may lead to delays in completion. 5 Completion: Under the terms of the contract,
a completion date will have been agreed. Completion involves the
signing of the deed document (escritura) by both the vendor and
the purchaser. This must be done by both parties at the same time,
in the presence of a Spanish Notary. This need not necessarily
take place at the Notary’s office in the locality of the
property, nor necessarily in Spain, but if it is not carried out
in the locality, then it may well lead to delays in the registration
of the title at the local land registry. It is obligatory now for a non-resident to appoint a qualified tax representative here in Spain. When it not possible for both parties to be present at the same time, one or both parties should execute a Power of Attorney in favour of their lawyer, or a third party, to sign on their behalf. 6. Cost: As a purchaser, you will most likely be required to pay the notary cost, registration fees, transfer tax and “plus valia” tax. As a rough guide these normally amount to about 10% of the total purchase price. 7 Registration of the new title: The escritura having been signed by both parties, the new title must be registered at the local Land Registry. Once the documents have been processed by the Notary (normally 14 days) the document must be presented to the Land Registry where new ownership is registered, registration fees and transfer taxes are paid. This will take approximately 5 months. 1 Decide on property Part of the service Purchase Plan AFTER YOU HAVE CHOSEN YOUR PROPERTY BANK ACCOUNT CONTRACT SERVICE FURNISHING OF YOUR PROPERTY All properties are sold freehold. EXTREME CAUTION should be taken to ascertain legal ownership etc. when purchasing a bar or similar. Some commercial properties are freehold and the procedure for purchase is identical to that of a private home. Laws, regulations and customs in Spain are very different from those in the UK and it is therefore advisable to find a reputable solicitor service to help you with every aspect. We will give you full information on all matters, including payment of taxes, rates, electricity and water bills, insurance cover, etc. INSURANCE We can take care of all of your insurance needs. RATES TAX HOUSEHOLD UTILITIES BUTANE GAS COMMUNITY SERVICE PRIVATE ADMINISTRATION TECHNICAL SERVICE WILLS We have not attempted to cover all the aspects of property purchase, only those commonly encountered by most purchasers. We hope that this guide has been of help to you. Please do not hesitate to contact us should you
require any further information, whatever it may be.
Kevin Roper |
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242, Centro Comercial Costa Luz 37 Avenida de Las Playas, Puerto del Carmen Lanzarote 35510 Tel. +34 928 51 02 31 / 928 51 21 70 Fax. +34 928 51 12 57 |
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