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Buying Property in Tenerife – What You Should Know

There are many benefits of living in Tenerife, which is why a lot of people relocate there from the United Kingdom and many other cold Northern European countries.
The main attraction to Tenerife is the great weather, but there is much more to Tenerife than just the weather. There are gorgeous mountains, pine forests, and the cost of living is considerably lower.
Locals and tourists also refer to the island as “The Island of Eternal Spring” and the evidence of year round mild temperatures is plain to see.

More and more people are leaving their homes for the sub-tropical climate here. Thanks to the increase in confidence and wealth, and the aspirations of many, property in Tenerife is in high demand. This is especially the case in the areas of the south like Los Cristianos and Las Americas.

However, the way property is transacted in Spain and Spain’s islands are quite different. This is why it’s essential to do your research well in advance. You also want to make sure you work alongside professionals who are impartial and can help you with buying a property.

How Is Property Sold
Most properties in Tenerife are sold via estate agents. When you find a property you like or you see being advertised, then you’ll want to contact the estate agent that listed it. If you want to purchase the property, then contact the estate agent and put in an offer.
Property owners in Tenerife typically know how much their property is worth, but you can ask the estate agent to negotiate the price. A lot of properties are sold already furnished. However, you do need to know there is no formal system for surveying, so you need to inspect the property and come to your own conclusion as to what the condition of it is.

Property Purchasing Procedure
If you put in an offer and it’s accepted, then you’ll pay a deposit, which is usually ten percent. If you reach this point, then you should hire a lawyer who will work with your interests in mind. As for how much you’ll have to pay the lawyer, it depends on the property’s value, how much work is involved, and the attorney you decided to use. Generally speaking, you can expect to pay a lawyer around €2,000.

What Happens After I Pay A Deposit
After paying the deposit, you’ll want to apply for a nota simple, which your lawyer will arrange. It is a document that states whether or not the property has things attached to it, such as a mortgage, charges or embargos to name a few. If everything checks out, a private contract will be drawn up by the lawyer and you’ll need to sign it and so will the seller.
The contract will likely be drawn up in Spanish, but the best lawyers will translate the language so you can read it. If you’re not sure what you are signing, then do not sign anything. Be aware that if you sign the contract and the transaction doesn’t go through, then you’ll risk not getting your deposit back.

The Completion
The transaction should be completed within 4-6 weeks and the local Notary will look at everything and they will confirm the transaction’s terms and condition. Your lawyer and the seller’s lawyer or the representatives of the two will need to be present. You’ll be asked for a banker’s draft which will total up to the price of the property.

If there’s a mortgage attached to the property, then you’ll need to provide a check to the seller’s bank as this will be used to pay the rest of the mortgage.
If the seller of the property isn’t a resident, then you’ll need to pay the tax authorities three percent of the price. Other than that, everything is paid via banker’s draft to the vendor.
You have to be careful when transferring money within Spain. This is because banks can charge a lot of money. It is actually very common for charges to amount to thousands.

Are There Additional Costs
Your taxes need to be covered. Not only that, but costs associated from the transaction will need to be paid. As for what these costs are, they include:

• Lawyer- About €1,500-€2,500
• Notary- You’ll need around €2,000 for notary and registration fees
• Transmission Tax- The tax depends on what the transaction’s value is

If you’re going to buy a property for € 200,000, then your lawyer will likely want 8% of that and you’ll need to pay another 6.5%.
Before you do anything, always make sure you have a good idea of what fees you’ll have to pay.
After all of the above is completed, you’ll finally become the owner of a property in Tenerife. Best of all, the council tax isn’t that much. In fact, it only costs around a few hundred Euros per year. As for your refuse collection, don’t worry because it is collected regularly, all for around one hundred Euros.

You might want to buy property in a community, such as an apartment. If you do this, then be aware you’ll have to pay various fees. These fees go towards things like maintaining the gardens, taking care of the pool and maintaining lifts. Those are a few examples of what your fees go towards.

Is There Anything Else You Should Know?
You should have a will drawn up. You’ll be making numerous visits with lawyers and you’ll visit the Notary office at least once. While you are at the office, you should have a will drawn up or signed. Remember, anything can happen; it’s is a good idea to have a will created around the same time.

Also, you’ll need an NIE number, which is easy to get and you need to do it before the transaction is completed. Your lawyer will tell you when you should do it. Other than that, the only thing left to do at this point is to learn a little bit of Spanish, relax, and enjoy all of what Tenerife has to offer, including top notch attractions and gorgeous weather.

Now you know more about buying a property in Tenerife.
If you want to live somewhere amazing, then start looking at homes in the area. Just make sure you keep the above information in mind when you start looking around for property on the island.

 

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Tenerife Estate Agent – Top 5 Popular Questions To Ask

Tenerife estate agent questions

5 Important Questions To Ask The Tenerife Estate Agent

This is one of those long established professions which is not accompanied by the best reputation in many countries around the world. Sadly, Tenerife is definitely not an exception when it comes to this image that is tarnished. It also doesn’t help that this industry is completely unregulated in Spain.

While there may be professional organisations like the API and GIPE, many agents are unregulated and not members of these professional organisations.

While this is not to say that these agents are unprofessional and will fail to do a great job, it does mean that you should be more careful when you choose an agent which might not be the case in the UK or in European countries where the industry is tightly regulated.

The size of the estate agency does not always equate to good quality because sometimes, the larger ones can also be the worst offenders so it’s important that you do your research thoroughly.

When many of the “fly-by-night” Tenerife agencies and agents were forced to shut down during the previous recession of 2008, a recent upturn within the property markets has enticed a large number of these individuals back into the profession.

Some of the locals joke that just about anyone can stumble off the streets and become an agent when or if an opportunity to make commissions comes about.

This situation is compounded due to so many more buyers on the market that have the cash, but not enough desirable properties for sale.

For this reason, when a property becomes available for sale through a Tenerife agent, it’s very common that other agents will already have suitable buyers, and the 2nd agent will then expect or request a 50% “commission share” for this introduction.

While this has the potential to run smoothly if done correctly, in a lot of cases, it can also increase the level of uncertainty into a transaction that is already complicated.
Making sure you can trust the first contact estate agent is very important in this scenario.

Before you start working with any of the estate agents in Tenerife, here are a few questions to assist you in deciding which is the best one for you and how professional and trustworthy the agency is:

 

1. Does The Agent Have A Landline Phone Number And Physical Office?

Many of the Tenerife estate agents don’t even work out of an office. Most work from home or even from their cars, where they only use their mobile phones. While some agents may be able to provide a service that is acceptable, the risks to the clients become obvious.

When or if an issue arises, these agents are usually a lot harder to track down, compared to the professionals that work from an office that is accessible to anyone.

2. How Long Has The Estate Agent Been Established?

How long the Tenerife estate agent has been in business is usually one of the best indicators when it comes to assessing their integrity and professionalism.

An agent that has been around for a number of years that works out of an office that is accessible to the public, is usually a far safer option than someone that you met at the beach or even worse, in a local bar who only provided you with their mobile number.

3. Does The Tenerife Estate Agent Have Their Own Website?

This question may not be one of the more obvious ones to ask, yet this has become more and more important when it comes to the world we live in today. Many estate agents are now in agreement that more than 80% of enquiries now come from the Internet, in comparison to under 20% through walk-in business.

A website that is professional along with an above average standing in Google search results and contains all the necessary contact information you would expect from an established business is a clear indication that the estate agent is a proper business.

It also shows that the agent is committed and invested in his or her profession because running a good quality estate agent site takes time and money to create and maintain.

4. Does The Agent Have A Business Listing On Google?

Google Business Listing need to be validated before being approved to be made public which adds another layer of confidence in your search to find a good agent.

To be validated, a physical address and proper contact details need to be provided so in this way, some of the work is already done for you.
Google is very strict with their listings and make it difficult for anyone to game it.

5. Are There Any Reviews For The Agent?

If the agent has a good history of positive reviews then it signals that the business is established and depending on the types of reviews given, that it can be trusted.

Bear in mind that reviews can sometimes be manipulated but there are signs to look for to decide if they are legitimate and natural, or fake.

Are the reviews all perfect? Do they all occur in a short space of time? Are they given by people not associated with the location? Do they read naturally or do they read like a sales pitch?

There are also reviews to look out for on Facebook, Yelp, Trustpilot, and many other platforms but the same rules apply.

Don’t forget that word of mouth plays an important role too when coming from friends and family who have had a good experience with a Tenerife estate agent they used and recommended them.

Last Words

Finally, when you give instruction to your Tenerife estate agent, make sure you stand by what you want and let them know your exact requirements.

Many of the estate agents have great skills when it comes to convincing their clients to consider properties that do not match up to their preferred location or criteria or to increase their original budget.

The better agents will provide you with a realistic and honest appraisal when it comes to your expectations, along with what Tenerife properties are currently available within your budget. They also won’t try to convince you into buying homes that you cannot afford.

Happy estate agent hunting and wish you every success!