Completing the Purchase

So the mortgage is in place. The price has been agreed. Your agent has ensured that there are no outstanding charges or bills against the property. What happens now?

Inventory

Villa in Playa Blanca It is worth noting that most properties on Lanzarote are sold fully or semi-furnished.

It is sensible therefore to ensure that your estate agent carries out a detailed inventory and that this is agreed between buyer and vendor.

The Purchase Contract

A contract for the purchase is usually prepared by your estate agent.

This contract, governed by Spanish contract law, will stipulate all of the information relevant to your purchase, such as the agreed price and a timescale for completion (usually 4-6 weeks from signing). .

This contract becomes effective upon payment by the buyer of a 10% deposit.

This deposit payment is non-refundable.

Should the buyer withdraw after this contract has been signed they then forfeit this 10% deposit. If the vendor withdraws he must refund the 10% deposit plus payment of a further 10%.

Notarisation

The purchase is then completed (usually 4-6 weeks from signing the initial purchase contract) at The Notary’s Office.

Here the buyer or his representative must pay the outstanding balance of 90% of the purchase price and sign the Escritura or title deeds.

The Notary will check that all of the legal documentation is in order and that all outstanding taxes, local rates and utility bills have been paid up to date.

A non-resident buyer will be asked to produce their passport as proof of identification along with cheques for the 90% balance of the purchase price.

The buyer is usually accompanied to the Notary’s Office by their estate agent and / or their lawyer. Usually the estate agent is responsible for presenting all of this pertinent paperwork to the Notary, such as receipts for payment of taxes, rates and bills.

Escritura

The Escritura is then signed by both parties, witnessed by the Notary and entered into the land registry.

Ownership is then officially transferred from seller to vendor upon payment of the 6% stamp duty to the land registry office. This is usually overseen by your estate agent and must be completed within 30 days.