So D-Day has finally arrived! Your new home in Tenerife now becomes a reality and all that is left to do is sign on the dotted line!
The signing of the Title Deeds (La Escritura de Compraventa) of any property in Spain is done before a public Notary. The people who need to attend are the buyer and the seller (or their appointed legal representatives) and the respective bank manager, if the buyer is taking out a mortgage on the property or if the seller is cancelling one.
The Escritura will contain a full description of the Tenerife property, the purchase price and the names of both buyer and seller. The buyer can choose to be the sole owner of the property or he can name several people as co-owners, for example his/her spouse and/or children etc.
The balance to pay (as a deposit will already have been paid) is paid in front of the Notary and is done by a Bank Cheque or Bankers Draft (cheque bancaria) issued by the Spanish bank. After the deeds have been signed, the Escritura is electronically logged, this is called the “presentación telemática” and the buyer will receive the original Escritura in a few days. Each party then has 30 days to pay the relevant taxes and fees derived from the purchase/sale of the property.Once the taxes have been paid at the tax office (La Hacienda), the Escritura is then sent to the local Land Registry (Registro de la Propiedad) together with a stamped copy of the “Modelo 600” which is proof of the buyer’s taxes having been paid and the new owner’s details are recorded against the property plus any mortgage information if there is one.
The registration can take anything between 1 – 3 months, after which the buyer will then be given the original documents. However, should you need a copy of the Escritura in the meantime, you can ask the Notary for a copy, called La Copia Simple.
Now that the Escritura has been signed, you can start the change of name for the utilities such as water, electric, telephone, rubbish collection, IBI (municipal tax similar to Council Tax) and community if you have bought on a complex. Most apartments in Tenerife are situated on a complex and monthly community fees are paid for the upkeep of the complex, such as the gardens, pool and lift if it has one. Your lawyer or agency can normally help deal with this for you.
So that’s it – Congratulations! You are now the proud owner of your very own property in Tenerife, whether you have bought an apartment in Playa de las Américas, a villa in Costa Adeje or a rural house up in the hills – this is your place in the sun and now is the time to open a good bottle of vino, sit back, relax and enjoy it! Salud!