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View Full Version : What's the procedure for selling an apartment in Tenerife?



boredinscotland
11-10-2011, 16:25
What is the procedure when an offer is accepted on an apartment? Had an offer for my apartment today and I accepted, buyer has to arrange deposit now, how is payment made as price is agreed in Sterling? When I bought I paid in Bankers drafts from Sol Bank, still trying to find out how buyers are paying.
Thanks in advance

doreen
11-10-2011, 16:36
Are you just using an agent or will either of you have a lawyer acting ? The normal deposit is 10% - presumably it will be paid in euro equivalent ... if only an agent, they usually take it (and often hold on to it to make sure their commission is paid :() ... do ask to see/discuss the contract before it is signed (what are the figures in it etc) rather than accepting a fait accompli ... and please make sure you have an official receipt for your agent's fees on closing as it will help reduce any Capital Gains bill

boredinscotland
12-10-2011, 10:58
I have been informed people are paying with Sterling Bankers Draft from LLoyds, the 10% will be forwarded to me from Morfitt Properties. Contract will be emailed to me today, agent has kept me informed of everything so far it is just the unknown I am getting into that I am not sure about.

atlantico
12-10-2011, 11:10
don't think you'll actually get the 10% deposit, agents usually keep hold of it and take their commission, fees etc out of it and then give you the remainder, if any, upon completion

boredinscotland
12-10-2011, 11:16
Thought that myself Atlantico, but with apartment selling for Sterling price, people are depositing 10% of that, only grey area is tax,commissions which are paid in Euro,,,,,that is what I have been told anyway,,,,IF I do get the deposit basically the agent is then TRUSTING me to pay fees,etc,,,,Not many of them if any do that,,,they want their money guaranteed upfront

boredinscotland
17-10-2011, 18:24
Just had a phone call today,people are now paying into an account in Tenerife as it saves them money on a Bankers Draft,,,if they think I will sign at Notary without seeing funds in my account beforhand,they are dreaming,,,,,things are not as simple in Tenerife as UK,,I paid by Bankers draft when buying,now they are changing what was agreed.

YOUNG GOLFER
17-10-2011, 23:40
Just had a phone call today,people are now paying into an account in Tenerife as it saves them money on a Bankers Draft,,,if they think I will sign at Notary without seeing funds in my account beforhand,they are dreaming,,,,,things are not as simple in Tenerife as UK,,I paid by Bankers draft when buying,now they are changing what was agreed.

If you are not happy with how the sale is going then get your Agent told.

But the funds should NOT be paid into your account.....why should it be?(what would happen if you done a runner with it) the money should be left with a lawyer and it's up to you to ask for a copy of payment into the Lawyers account.
If you are unsure of what is going on then contact a Lawyer on you behalf they should work for half the normal price to over-see things..:)

CIM
18-10-2011, 00:03
Hi Jim, I have just sent you an email, have a read and let me know if you have any questions, problems. IŽll give you a ring tomorrow if you like - time permitting.

delderek
18-10-2011, 09:03
Just had a phone call today,people are now paying into an account in Tenerife as it saves them money on a Bankers Draft,,,if they think I will sign at Notary without seeing funds in my account beforhand,they are dreaming,,,,,things are not as simple in Tenerife as UK,,I paid by Bankers draft when buying,now they are changing what was agreed.

A sterling bankers draft was handed to me at the notary, minus the 3% retention. The Pound/Euro rate was agreed by myself and the buyer a week or so before the notary appointment. My buyer paid the plus valia. You could do no better than to contact Janet ********, who will guide you through each stage, for a very small fee.

doreen
18-10-2011, 09:23
As part of the Money Laundering regulations, all payments that go to make up the total price must be included in the Deed at the Notary's office - this will include proof from the bank along with the bank account number of any deposit paid. Some agents will put the purchase price on the contract as being the agreed figure minus their fee - that would not affect the seller, but it does hurt the buyer, as he has a lower base when he sells on and so more exposure to Capital Gains.

boredinscotland
19-10-2011, 18:00
Another thing to be factored is fixtures/furniture, just found out 6000 Euro is the value suggested????? nobody asked my opinion,,,we spent over 10K,,,,,seems to be going in buyers favour all decisions, so I have decided I will not be going to Notary until EVERYTHING is agreed beforhand, any surprises at Notary, I walk out.Get the feeling I am being treated like a mushroom, kept in the dark and fed.....
CIM I wish it was you that found a buyer, appreciate all advice

Peterrayner
19-10-2011, 18:29
Jim

Dels advice to contact Janet ******** is excellent advice and one I would follow myself.

boredinscotland
19-10-2011, 20:04
Just had email from Lee Morfitt advising me also to get Legal Advice. Surely 5% commission which I am paying should cover agreeing costs of furniture????????, 5% commission and 3% withheld Tax already agreed need to be paid from 10% deposit already paid.

doreen
19-10-2011, 20:39
b-i-s ... I wouldn't worry about the 6.000 value put on the furniture ... it doesn't affect you as you said you are selling for what you bought at so will have no Capital Gain (particularly when you add on your 5% Property duties and another percent or two for registration and other costs). It just means the tax is reduced a little for the purchaser on that 6k.

You will still have to hand over the 3% of the purchase price as a Non Resident, but you can claim this back, so make sure you do have that receipt from the estate agent for his fees and of course, your copy of the payment of this tax :)

boredinscotland
19-10-2011, 21:02
Not worried about furniture price,,,just want the figures to add up to what I was originally told I would get back after sale,,,and they are not so far.

MICH
19-10-2011, 22:59
Not worried about furniture price,,,just want the figures to add up to what I was originally told I would get back after sale,,,and they are not so far.

Sorry b.i.s but all the advice in the world from forum members is great don't get me wrong...... but if you are looking at selling a house here then think about getting a Lawyer to help through this sale as you seem very unsure about whats going on....it will give you peace of mind.:)


Not worried about furniture price,,,just want the figures to add up to what I was originally told I would get back after sale,,,and they are not so far.

Sorry b.i.s but all the advice in the world from forum members is great don't get me wrong...... but if you are looking at selling a house here then think about getting a Lawyer to help through this sale as you seem very unsure about whats going on....it will give you peace of mind.:)

Sorry it's me YG not the wife.:)