Things you need to now
if you want to buy a house in the Canary Islands. The first important thing
you should check is if the seller of the real estate really is the owner or has
the authority of the owner to sell the real etate. This you can find out through
the selling contract authenticated by a notary (Escritura Pública de Compraventa)
which has to be confirmed by the land register office (Registro de Propiedad).
It is also recommendable to check the power of attorney of the seller if he is
not the owner of the property. Further it is important to know that according
to spanish law a verbal contract can also be binding!
Check the correctness
of the size of the property! Make sure the seller presents all the receits in
order to proof that all the bills are paid to prevent later problems with power-
or water suppliers. Get everything, even the smallest agreements, in writing and
make sure the seller signs it. Never pay more than 20 % deposit before your
appointment with the notary and insist on being registered as the new owner at
the land register office immediately even if youve agreed on payment by
installments. Get all inforamtion about taxes and other costs before the
sale. The following numbers will give you an aproximate idea of how much
youll have to expect to pay: Costs for notary, solicitor and the land
register office will be approximatly 3-4 % of the sales prize as confirmed by
the notary. Additional to this amount youll either have to pay the tax on
real estate transactions of 6 % (though this doesnt usually have to be paid
since the tax office doesnt get informed about private property sales automatically.
But note that the period of limitation starts when the tax autorities have
been informed of the private sale.) or the VAT (7 or 16 %). It can also happen
that the seller adds the land value increment tax (Plusvalia) of 5 % onto the
sales prize. You wont have any additional costs if the sales should
be concluded by an estate agencyassigned by the seller. In case you assigned
the estate agency youll have to pay between 5-10% of the sales prize.
Topical Real
Estate Offers
Tips
for buying houses
Property
Value
Renting
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