Are you ready to make come true the dream of your own home? With the current real estate dumping prices many people see their chance of getting one step closer to their goal. To avoid unpleasant surprises, we put together a checklist with the most important points. Have a look before you buy, and don’t hesitate to contact us for any further assistance.
The following summarized and simplified information does not claim to be complete or replace professional advice, but rather should serve as food for thought.
CAN I REALLY AFFORD IT?
Some important costs after buying are: Non-Resident Home Owners Tax, Annual Property Tax, ordinary and extraordinary community fees, repairs, water, electricity etc.
Check whether there’s a general building renovation due. This can cost you thousands of Euros.
If you think of renting out your property, bear in mind that independent short-term rental is prohibited and will be punished. In case you need the invested money quickly, it could take longer than anticipated since selling could take months.
BUY SAFELY – BUT WITH WHO?
Contact various real-estate agents and search for suitable objects on your own. Look around, take your time, plan ahead. A real-estate agent helps with the search, but he is not a legal advisor. Therefore, do not sign any contract issued by them or the seller, if your lawyer has not given their OK.
You are on the safe side if you buy with the help of a lawyer and a notary. The lawyer takes care of all the contracts and checks the situation of the property (points listed below and more), pays the fees, and makes the registry entry. The notary certifies the purchase contract. A private purchase contract is binding, but cannot be registered in the Land Registry.
Also at judicial auction sales it is indicated to seek a lawyers help.
WHAT TO CHECK BEFORE BUYING?
Is the property legal?
Is the official energy certification available?
Are there any outstanding community debts?
Is there a mortgage/execution on the property?
Can you use the property as intended?
Are the electric installations according to the current law and is the „Boletín de instalaciones eléctricas“ available?
Is the property part of an inheritance?
Are there inconvenient statutes or house rules?
Are there any relevant lawsuits towards the community?
Are the supplies for water, electricity, Internet, telephone in order and do you have your own meter?
WHAT WILL THIS COST ME?
The following costs together make up a 10% of the purchase price.
Costs for a real estate agent are around 5%.
DO I HAVE TO BE A RESIDENT TO BUY PROPERTY?
No. However, you do need a Spanish Tax Number, which can be obtained easily.
CAN I PAY PART OF THE PURCHASE “UNDER THE COUNTER”?
No! This is illegal and can be punished. The Canarian tax office also checks whether the price paid is believable. In case not, they might demand a retrospective tax payment.