The Complete Guide To Buying Property in Lanzarote
Buying property in lanzarote, given the wide variety of property for sale in Lanzarote, it pays to give some thought to the type of property you are looking for.
Whether you are looking for a one bedroom apartment in Puerto del Carmen or a luxury country villa as a long term investment.
Our combined efforts will help you find the right property. We will listen to your requirements and advise you of your best options when choosing your Lanzarote property. If you are planning a visit to the island, contacting us in advance will allow us to organise viewing appointments of these properties thus saving you time.
Purchasing your ideal property
When you have decided on your property Clarity will work to negotiate the best price possible for your chosen property, please also take into consideration that there are expenses to add on to the purchase price when buying property.
As a guideline only, calculate 10% of the purchase price to account for your expenses. These include notary fee, stamp duty, legal fees, land registry fee, mortgage set up fees etc. If you purchase without a Spanish mortgage you can take off approximately 1%.
To reserve a property and remove it from the market it is customary to pay a holding deposit of 1.000 euros to the estate agency.
Now would be an ideal time to apply for your NIE number. NIE stands for Número de Identificación de Extranjeros and is your identification number in Spain. An identification number is obligatory for all persons who wish to purchase a property in Spain. It is a very simple process which we will arrange for you
A lawyer, preferably with local knowledge, should perform the property conveyance to confirm that all is in order with the property, that the vendors are indeed the lawful owners and that there are no charges, encumbrances or legal issues. Utilities and community history will be checked and a local town hall search will highlight any future town hall plans for the surrounding area and ensure all taxes have been paid.
Once the searches have been carried out and it is proven that everything is legally in order, a private sale and purchase contract will be drawn up between the purchasing and selling parties. This will lay out the conditions of the transaction, identify the property and the parties involved, as well as the deadline for completion.
Once the deposit contract is drafted and both parties are happy to sign and enter into the agreement, the purchaser is then obliged to transfer the balance of the 10% deposit of the purchase price, usually to the client account of the vendor’s lawyer.
The contract will stipulate the consequences henceforth if either party does not comply with the conditions contained. Commonly, if the purchaser withdraws from the sale, the deposit will be forfeited. If the vendors fail with his obligation to sell the good title after this stage, the 10% deposit must be refunded back to the purchasing party, plus the same amount again as compensation.
Finance and Mortgages
If you are purchasing with a mortgage, Clarity will liaise with your bank in order to process the transaction as smoothly as possible. Please ask us for a form stating what paperwork is required to begin the application.
If you are a cash buyer or you have pre-arranged finance, you will have a distinct negotiating advantage when it comes to settling a price once you have decided on your preferred property.
Accompanied by your lawyer and a sworn translator, you will sign the new title deed in front of a Spanish notary public, and the outstanding amount will be paid over to the vendor.
The original documentation pertaining to the identification of both the vendor and purchaser and all property documents and proof of tax payments must be shown at the notary and included into the property title deed.
After you sign your deed of purchase in the notary, your lawyer will complete the process by arranging the payment of your stamp duty and registering your title deed. Please allow approximately 2 months from signing in the notary’s office to the final step of receiving the inscription at the Land Registry office. A Copia Simple (simple copy, pre registration) will be available and sent to you by e mail within 2-3 days of signing at the notary.
Utility bills and town hall files will be transferred to your name and direct debits will be set up to pay any corresponding future bills. The same applies for the community charge if your property is on a complex with a community of owners.
Once you own your new property you will probably still need advice and help. Clarity Consulting will be with you every step of the way for any need that may arise.