Tenerife Properties Direct are not Estate Agents. 

We have established a service to link prospective buyers and sellers directly, in a bid to reduce the high commissions charged by estate agents. Many agents will try and convince prospective buyers that it is extremely risky to purchase a property in Tenerife without using their services, however this is simply not the case. As long as you follow the advice and information given in this section, and employ the services of the relevant professionals at key stages in the buying process, you can complete your purchase safely and save thousands of Euros.

Mortgage pre-qualification

If you are likely to need a mortgage to complete your purchase, it makes a lot of sense to start the process before you begin your property search. This will give you an exact understanding of the costs and limits to your borrowing, and will enable you to work out an exact budget. Banks are very strict on lending criteria in the current economic climate, and there is nothing worse than falling in love with a property only to find out that you cannot raise the funds.

We do not recommend the services of “independent” mortgage brokers, because they too work on a commission basis, just like estate agents. If you have an account in Tenerife already, then your own bank is a good place to start. Contrary to public opinion, banks ARE lending money, but the lending criteria are strict.

Knowing you have secured lending will allow you to put serious offers in on properties, and when the owners know you have funds available, you may be able to negotiate further.

Arranging a Viewing

Once you have decided on a short list of properties, you will need to contact the various owners to arrange a viewing. During the viewing, make sure that you cover the following points:  

• What items are included in the sale
• Community charges
• Any known debts associated with the property
• Timescale for completion

All the above should be taken into consideration when making an offer. The information given by the owner should in no way replace professional conveyancing. Debts on a property (water, rates, community, electric etc.) will become your responsibility once the sale completes if they are not cleared beforehand.

Make sure that you cover any specifics you may have regarding proximity to public transport, schools, medical centres or what ever else is important to you, and then verify this independently.

Some owners will have elected to use one of our representatives to conduct the viewing on their behalf. If this is the case, it is important to remember that the representative is purely there to grant access to the property and ensure that it is secure after the viewing. They will not be in a position to answer specific questions, so make sure you write down any queries and contact the owner for answers after you have viewed.

Making an Offer

If you decide that a particular property is right for you, then the next stage is to make a formal offer. It is important to stipulate exactly what you are expecting to be included in the sale, and that the offer is made under the assumption that the property is debt free.

Make sure that you research the prices of similar properties in the area, to ensure you are offering a reasonable amount.

When making your offer it is also important to negotiate a mutually acceptable completion date.  Make sure you allow 10-12% extra to cover taxes and other costs.

Calling in the Professionals

Once your offer has been accepted, it is time to appoint an independent legal services company. Tenerife Properties Direct has negotiated a full package of services with Complete Legal Solutions, who can be contacted on (0034) 922-724-712. They will guide you through the rest of the buying process, and ensure that the legal side of the purchase is stress free and you remain fully protected.

UNDER NO CIRCUMSTANCES SHOULD YOU PAY ANY MONIES DIRECTLY TO THE VENDOR, OR USE A COMPANY THEY SUGGEST UNLESS YOU ARE ABSOLUTELY SURE OF THEIR STATUS AND COMPETENCE.

The rest of the buying process is briefly outlined below :

• Purchase contract is drawn up and agreed by both parties. This will include the completion date and payment schedule and methods.

• A 10% deposit is payable, usually within 7 days, to the legal representative. This is usually non-refundable in the event of the buyer pulling out of the purchase.

• The legal representative will conduct a full conveyancing package.

• Once all the legal checks have been made, and everything is in order, the final stage is the signing process at notary. While both parties are normally in attendance, it is possible to grant a third party a power of attorney to sign on their behalf.

• Once the purchase is complete, you can then change over the names on utility bills and community charges

Do I need a Solicitor?

Whether you are buying properties in Spain for your own personal use or for investment income you should always use a solicitor. Complete Legal Solutions, (CLS) who are based in Las Chafiras or John Hatrick - Tenerife Solicitors who is based in Los Cristianos in Tenerife can arrange everything for you and will guide you through the maze pf paperwork saving you a lot of hassle later.  Tenerife Properties Direct have negotiated a specific set of fees with these companies, saving you even more money.  Under no circumstances should you use the services of a solicitor recommended by the Seller, unless you can independantly verify the quality of their services.

What are the benefits of buying a property Direct ?

• Pay Less... Negotiate direct with the Vendor

• Pay Less... Avoid the inclusion of agent commissions

• Pay Less… Pick up bargains from vendors requiring a quick sale

5 Easy steps to buying a property privately

• Agree a budget - and stick to it. Remember to include about 10% for the unavoidable associated fees and charges e.g. Notary fees, bank charges, solicitor costs etc. 

• If a mortgage is required, get approval in principle.

• View the properties on our pages. Enquire directly to the vendors of any properties which you would like to know more about. Provide more than one means of contacting you as Vendors may not take an enquiry seriously if there is only a phone number or only an email address - give both and a landline number. Also, make sure you state your national and international dialing code. We have enquiries from all over the world, and our vendors just will not know how to contact you.

• Arrange viewing, and if you like it enough, make an offer, be prepared to negotiate, not only on price, but in some cases the vendor may consider furniture or even a car as part of the negotiation. This is not uncommon with Spanish or ex-pat property sales where the owners are moving back home. 

• Exchange details and those of solicitors. With Spanish property you should ask if they have a copy of the Escritura (Deeds). This will assist your solicitor.

Notes about buying a property in Spain

Spanish Property Purchase Taxes and costs

Whether you are looking for 2nd homes in Spain, rural inland Spanish property, or an investment property in Spain, you should prepare for Spanish taxes and associated costs which you will need to pay.

Resale Property Tax : ................. 6.5% or 5% (if New Build) of purchase price
Notary and Land Registry fees: 0.7% (approx.)
Electric and water contracts :.... 240.00:-€uros (approx.)
Plus Valia (Land Tax) :................ 1% (approx.) Normally paid by seller subject to sales contract

Properties in Spain benefiting from shared community facilities, will normally attract an annual community charge based on the property value. In some instances there is no community, so no community charges apply.

NIE Numbers 

This is a National Identification number. Your Solicitor will advise you on obtaining this. It is a simple process but can be time consuming. Your Solicitor may also be able to offer a service to arrange this for you. Regardless of buying apartments in Spain, or investment property in Spain, you will need this before you can commence your dream of buying your property.

Bank Accounts in Spain

You will need to open a bank account to allow for contracts to be set up. This is very simple, and many banks speak excellent English. You only require your passport, and any bank will open an account for you.

Contracts and Deposits

You will need a contract of sale to buy your homes in Spain. Your Solicitor will draft the contract of sale for signing, which will then normally take up to 6 weeks until completion. It would be normal for a 10% deposit to be paid upon signing, which would be non returnable if you pull out of the contract.  If you are dependent on a mortgage for your homes in Spain, you should ensure that your deposit is refundable should you fail to achieve the mortgage.

Power of Attorney

You may need to appoint your Solicitor or a trusted friend as Power of Attorney if you are unable to attend at the Notary for completion.