THE ACQUISITION (PURCHASE) OF HOLIDAY OR RESIDENTIAL REAL ESTATE.

General Information

1. When you decide to purchase a freehold property abroad, it is important that you contact only professional real estate agents, registered with a real estate association. Apart from listing legitimate properties, these agents also offer the correct handling of the various official documents, which is especially important for non-Spanish speakers. The majority of established agents with offices open to the public has been resident on the island for many years and know and understand the real estate market in detail. In addition to the handling of documents for the acquisition of real estate, they are also capable of offering further important services such as translations and the connecting of water and electricity etc.

2. Once you have chosen the property you wish to purchase, the agent executes an "optional contract" which enables you to acquire the property within a determined period. With a deposit of 10% of the purchase price, you reserve the right to purchase the desired property. This holding deposit allows time for all necessary financial transactions to be arranged and keeps the property out of the market for the determined period.

3. During this period the agent verifies that the property is free of debt and, where applicable, community fees have been paid. In addition, they will assist you in opening a "Convertible Euro Account" (non-resident account) at a bank of your choosing and in obtaining application for a national identification number (NIE) at the police station. This number needs to be registered in the Tax Office, to become a NIF number (identification number for tax pourposes).

4. Just before the expiration of the optional contract (e.g. after a 3 month period) the agent will arrange the meeting at the notary office where both parties sign the legalised documents and transfer of title deeds. Prior to this meeting (at least a week before) the money for the purchase, plus an additional 8 - 10% for tax and other expenses, must be transferred to your convertible account.

5. At the notary, the outstanding balance is paid to the vendor by a bankers draft or certified cheque. In cases where the vendor is a Spanish Company, Spanish citizen or resident, a certificate of receipt of foreign exchange import is required. Your Spanish bank, following the completion of the transfer of funds, will issue this. As the title deeds and documents will be in Spanish it is obligatory for non-Spanish speakers to have the services of a translator.

6. The purchase and registration costs are approximately as follows: 6,5% sale tax; 0,5% registration costs; 1% notary charges; 100,-- Euro for the services of the translator.

7. In the case where the vendor is a "non-resident" 3% of the defined purchase price must be retained and, within one month be paid to the Spanish public tax authorities (Tesoreria Publica). This applies only to properties which were entered into the land registry after 31.12.1986

8. In the one month period following the purchase, the title deeds must be taken to the Land Registry and the sale tax must be paid.

9. In two month period following the purchase, you will receive a notification from the registration office to collect the title deeds, as the registration process has been completed.

10. the one month period following the purchase, you need to pay at the town hall for the "Plusvalía", a tax to be paid on the increase of the value of the plot.

11. The buyer has to be registered in the town hall as the new owner of the property, in order to be properly notified for the rates and rubbish collection tax.

Inmo - Estate Lanzarote offers the following services in addition:

1. For all our customers we will do all the necessary paperwork involved in registering your new property at the land registry. The cost of this service will be between €250 bolsos imitacion and €500 depending on each particular case.

2. The agent can arrange a meeting with a recommended solicitor who can carry out the purchase on your behalf. The fees for this will be approximately €1,000 up to €2,500.

3. In most instances, the estate agent's commission is incorporated into the purchase price. This is usually paid by the vendor, except in the case of an alternate agreement. Please be aware that an official estate agency incurs various running expenses such as advertisement, rental, agents, telephone costs etc.

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