Making a Purchase / Sale of Real Estate

Selection of the desired property in Tenerife.

If you are going to take a mortgage from a Spanish bank, prepare in advance the necessary package of documents (translated from the official translator with an apostille and consular certification). This will save you a lot of time when executing the transaction. However, the preparation of documents can be done after signing the contract of intent to purchase, making a deposit, upon return to Russia. In this case, the signing of the property can be postponed up to 2 months.
Signing a private reserve contract and paying the deposit in the amount of 10% of the value.
Once you have found the desired option and decided on the property, a contract of intent between the seller and the buyer is drawn up. This contract includes the data of both parties, the description of the property, the cost of the purchase, the method and timing of payment, guarantees of the parties and penalties provided by Spanish law in case of breach of obligations by the parties. Usually a deposit of 10% of the value is paid upon signing the contract, and the balance upon signing the deed by a notary (usually within 2 months from the date of signing the contract of intent). The agency checks the property for debts or encumbrances in advance, so that at the time of signing the purchase all the necessary documents are collected, checked and submitted to the notary.
Opening an account with a Spanish bank for the purchase and settlement transaction.
If you are requesting a mortgage, a package of documents will be provided to the bank for review at this stage, which may take between 1 and 4 weeks. The bank asks the official valuator for a valuation of the property, and based on the valuation amount the possible mortgage amount is determined (for non-residents it is usually up to 70% of the estimated value).
Registration and receipt of the foreigner's identification number (N.I.E.) is possible both on a personal visit and with a power of attorney.
5. The deed of sale is executed at the notary after a positive decision to issue a mortgage, execution of all necessary documentation and preparation for the transfer of property to the new owner. If the property was previously released from the mortgage, the cancellation and registration takes place before the signing of the deed at the notary. If the property is encumbered with a mortgage and the mortgage is not paid by the sellers, at the time of signing the deed of sale, an agreement on the cancellation of the mortgage is signed, and the buyer settles with the seller and the bank.
The notary is responsible for the correctness and purity of the transaction, the day before checking all the documents provided and making sure that the object is free of debt and encumbrances, that the amount specified in the deed is paid to the seller in full. The seller and the buyer sign the deed in the presence of the notary, who also sign in confirmation of their consent, and then will follow the payment of all taxes and registration costs. Also, the bill of sale is entered by these persons who have translated the contract in languages other than Spanish. They are responsible for the correctness of the translation.
Conclusion of the contract of sale
After selecting the property that suits you and making a decision to buy it, a private contract of sale is drawn up, which, among other things, specifies the terms and method of payment. When signing the contract, as usual, the buyer pays about 10% of the value of the property, thereby reserving the property for himself. Further, within 1-2 months, the notary is issued with a deed of sale - the main official document of purchase and sale - Escritura Publica or simply "Eskritura". The rest of the money is paid at the signing of the Escritura, after which you become the full owner. And there are different payment terms, for example, you can draw up a mortgage loan, as a rule, it is up to 70% of the value of real estate for non-residents of Spain. All this is stipulated in the contract before it is signed. The escriture is signed by the buyer and seller in the notary office in the presence of a Spanish notary. The name of not only one owner, but also his entire family can be added to the Escritura at will. Before signing the deed, the buyer must receive the local police so-called N.I.E. (foreigner's identification number), so that all taxes can be paid correctly. After the signing procedure, you should also register your property with the Spanish Property Registry. The registration process usually takes about 30 days, in the case of a mortgage up to three months.