Useful information about buying a property La Palma
The following is interesting to know when buying a property on La Palma. With 20 years of experience we are happy to assist you. In the following we have compiled a few F.A.Qs, i.e. “frequently asked questions”, in order to give you as much information and support as possible right from the start. To be well informed gives you security for future decisions. Before we explain the particularities of buying a property in Spain and especially on La Palma, we would like to point out some details.
Please read our “privacy clauses”.
Especially on La Palma with its various climate zones it is very important that you are sure that the selected real estate object corresponds to your long-term expectations.
Especially the altitude plays an important role, because the temperatures can change up to one degree per 100 meters of altitude and of course depending on the season.
We generally recommend that you buy the property with us as your real estate agent.
The real estate market on the Canary Islands, especially on La Palma, is limited and prices have been rising steadily for years.
– A good investment that keeps its value and often increases in price. If you see the purchase as a pure financial investment, you have a lucrative possibility to invest your money sustainably.
– The property can be redesigned and furnished according to your own taste. The property can be used by the buyer as a holiday home or second home.
– Who even considers an emigration, is by purchasing an object, independent of the landlord. Thus one has an advantageous place to stay and is sure not to have to move out because the rented house is to be used or sold by the landlord himself.
– On La Palma there is a very good infrastructure
– Good flight connections
– Good medical care, hospital, German medical practices
– Well developed roads
– Extensive shopping facilities of any kind
– low crime rate
If you buy a property, an ESCRITURA must be drawn up. Translated does it mean; contract or letter. The Escritura is required by law in order to register it as owner in the land register (Escritura de Compraventa). The transfer of ownership is also handled by an Escritura, even if a private contract may be sufficient. Only after an entry in the land register, you are the owner by deed.
Regarding this question there is no alternative: “Yes, definitely”. Only with an entry in the land register (Registro de la Propiedad) you are the legal owner of the property. The former owner cannot sell the house or apartment more than once, they are not liable for their debts and have it easier in case of a possible resale.
If this is missing, the seller can identify himself as the owner and could sell the property again to someone else. Although this is illegal, it is conceivable.
In Spain it is quite common to conclude private contracts. Legal certainty is only approved when the ownership is registered in the property register. With insufficient Spanish knowledge it is advisable to translate contracts by a state-certified translator. To be recommended, a Spanish lawyer to check the purchase contract for its correctness.
If you work together with a real estate agent of your confidence, he will present the complete documents of the sale to the responsible notary before signing the contract and have them checked by him.
An important part of the documentation in a purchase matter is a current extract from the property register, which should be viewed in advance. Here you will find all current entries, as well as debts and charges.
Since sales contracts in particular contain certain pitfalls which may cause you disadvantages in the future, we will accompany you in all matters concerning the purchase procedure from the initial contact with the seller to the move into your property.
If you want to commit yourself to a property during your stay and do not have enough time to conclude a proper purchase contract with a notary, it is also possible to conclude a private contract in advance, which will secure the property for a certain period of time.
Here you have the choice of a reservation contract or option contract. Usually a contract of option is concluded, which secures the object to you for a certain time, generally connected with a deposit.
The option contract should make it clear who the seller and buyer are, what the ownership structure is, how long the option period lasts and what happens if one of the option participants does not keep his contractual agreements. During the option period, a notarised purchase agreement is concluded, so the period should not be too long.
– Your broker will help you with the important documents. He draws the last extract from the property register. He will obtain information from the relevant authorities, about the property in question and inspect all documents available for the property.
– The principle of good faith applies to private contracts (Article 605 of the Codico Civil). Legal validity also exists if no land register entry has been made, as it is not mandatory. Nevertheless, you should have an entry made so that you are on the safe side.
The majority of estate agents are competent and professional. But there are “black sheep” in every branch. When buying a property, a lot of money usually flows, and you also need trust. There are some points you should consider before buying a house or apartment:
Correct floor space
Base areas are often specified according to the area covered by buildings. A floor plan is not always available. Take a good look at the property you want to buy and pay attention to the building units on the plot, which should be included in the purchase contract, property register and cadastre.
Important key data about the property
A reputable real estate agent will not only visit the property with you, but will also provide you with all the important data concerning the property. Because some documents are very important if you want to buy property, but also sell it. This includes, as already mentioned, the land register entry. Here it should be checked above all whether entries are available in the property register and so on: encumbrances or debts, usufruct rights, rights of way etc.
Materials and surfaces
Already when you visit the property, you can inspect and test the equipment. For example, find out about the construction of the house, the condition of the walls, whether the electrics are up to date, whether there is a renovation backlog during sanitary work, whether there is any possible moisture damage in the house, or whether there are any problems with the septic tank. A good real estate agent will help you to ask all necessary questions in advance, so that you can develop a secure feeling for the property.
Room layout
If you intend to convert or individually extend the object, it is recommended that you consult a structural engineer or architect beforehand.
Building regulations
Find out that the building was erected legally, that there is no violation of the building regulations or whether you are obliged to make structural changes in the near future. At the same time, you can find out whether the conversion work you plan to carry out complies with the present laws.
When buying a property, costs and fees are incurred in addition to the purchase price. The fees for the application for a N.I.E. (identification number for foreigners, at the same time tax number; Número de Indentificación de Extranjeros) as well as the fees for the registration in the municipal register are negligible. Apart from that, there are currently additional fees:
– 6,0 % real estate transfer tax
– 1,0 % Notary fees (approx.)
– 0.5 % Registration fees (approx.)
Normally, 3.0% of the real purchase sum is payable by both parties as a commission.
Surely you can think of one or the other question that has not yet been answered or not answered in sufficient detail. Then please contact us by e-mail at moc.neilibomminnamllew@ofni or simply call us on +34 922 46 28 74. We look forward to making your dream of a property in La Palma come true.