When you have found the property that you wish to purchase in Fuerteventura, we can guide you through the legal procedures. We can recommend lawyers who speak your language so that you understand each of the steps to be taken.
The first step is to obtain a NIE number ( Identification Number for Foreigners), which is basically a fiscal ID number anybody with a financial interest in Spain or in the Canary Islands is required to have. You'll also need to set up a non-resident bank account, these are simple procedures and we will be happy to assist you through this process.
You should allow approximately 10% (Resale property) 12% (New property) of the purchase price for the expenses of purchase, this is necessary for the following reasons:
1. Resale property ITP tax (Impuesto Sobre Transmisiones Patrimoniales) 6,50%
2. New property 7% IGIC plus 0,75% stamp duty
3. Lawyers fees
4. Notary fees
5. Property registration fees
6. Water and electricity connection
The contract and deposit
You will be required to sign an option contract which is a private document signed between the buyer and the seller. This contract binds both you and seller to the purchase/sale of the property for a stipulated and agreed period of time. This means that the seller cannot legally sell to another party whilst the option is in force, also that you must follow the contracts terms and meet any stage payments (if applicable) and complete the purchase within the stipulated time frame. If you do not comply with this then you will usually forfeit the deposit paid unless the seller is to blame for any delays or the property's documentation is not in order.
Your lawyer will peruse the option contract and ensure that the terms and conditions are reasonable and legal. Deposits vary but are usually 10-20% of the purchase price for a resale property and around 20-30% for a new property. It is advisable to make arrangements for a deposit to be available on the island during your visit so that you can secure a property should you so wish. In most cases the seller will accept that the balance of the deposit will be sent within a few days of your returning home. The option contract will contain the following information:
1. Details of buyer and seller
2. A legal description of the property
3. The purchase price
4. The form of payment and currency to be used in the transaction
5. The completion dates and penalty clauses if these dates are not met
You may choose to return the island when the purchase completes at the Notary's office, if this is not an option you may give a Power of Attorney to your lawyer in Fuerteventura. Your lawyer will liaise with the seller and mortgage company (if applicable) and carry out the following work on your behalf:
1. Ensuring the title of the deed (Escritura).
2. Ensuring the title of the property is unencumbered by making a search for debts at the registrar's office.
3. Checking that all I.B.I. (local council's rates) have been fully paid up to date.
4. Collecting the most recent electricity & water receipts.
5. Checking that the community payments are up to date if purchasing a property in complex or building that has communal areas or pool, there is a small monthly fee payable for their maintenance.
6. Arrangements of paperwork for the Notary appointment.
7. Representation at the signing of deeds in front of the Notary.
8. Collection of the deed (Escritura) from the Notary.
9. Payment and calculation of the property both in the Registrar and the local Council.
Any additional work required will be charged at the Spanish equivalent of the Law Society's rates.
Welcome to our Real Estate Agency in El Cotillo, if we can be of further assistance please let us know.