Buying procedure.
Once you have decided on which property to buy , it is necessary to place a deposit of 10% to secure the purchase. Therefore, you need to have your finance already in place before you start to look. Remember, a deposit for a property in Tenerife is not usually refundable and the excuse that you do not have enough money to complete would not be accepted by the sellers lawyer.Because we realise that carrying around so much money is not always possible, or sensible, we can arrange for you to only place 1000 Euros holding deposit and the rest can be transferred direct when you return home.
You will need to open a bank account here in Tenerife but don't worry we will introduce you to the bank manager and help you with the forms.
Deposits may be paid by banker's draft or in cash. Alternatively, you may be able to use your credit card, but you need to tell your card issuer in advance that you wish to make a large withdrawal, or there may be delays while authorisation is obtained.
On acceptance of your offer, you will need to sign a purchase contract and pay the deposit. This contract will state the terms and conditions of the purchase, and specify the date for the completion of the transaction (normally 4 to 6 weeks). At the point of completion, at the Notary office, you must pay the balance of the purchase price (90%). It is very important to make certain that you have ready funds available for this date, remember, you will forfeit your deposit if you are not able to complete the purchase.
When buying property in Tenerife it is not a legal requirement to use a lawyer, and you will find many agents offering to do all the conveyance work for you for little or no extra charge. It is our company policy that all our clients must have independent legal advice. This will prevent any conflict of interest.
You will need to select and instruct a lawyer to act on your behalf. We can introduce you to a lawyer, should you require, who is an expert in Spanish and Canarian property law, also speaks fluent English.
If you are not "resident" in Tenerife , it is advisable to give your lawyer power of attorney to act for you, as this can save a lot of complications in the progress of the purchase. Your lawyer will sort out all the legal matters and also all expenses and taxes, even set up direct debits for electricity etc, so you will not have to worry about anything.
We will also keep a check on the progress of the purchase and will go to the notary office for the completion in case there are any complications.
Throughout the whole process we are there to help and remain in constant contact and our experienced staff will make sure that everything goes as smoothly as possible.
