Help with Property Purchase

[barryk]

We are considering purchase in Tenerife and I would be grateful for some advice on the best way to proceed with the initial stage.

I expect to pay a small deposit to reserve the property and take it off the market until we are able to sign a purchase contract and pay the 10% deposit.

Could any member advise the approx amount I should be paying and how long this would be valid for whilst my solicitor checks out the purchase etc

I keep hearing mention of the full 10% being required up front and non returnable if I do not proceed.

I would be grateful if someone could advise me of the best way forward in these matters

Thanks,

Barryk

[CIM]

Reservation is usually between 1,000€ and 3,000€.

Timeframe so far as how long you have to then pay the rest of the 10% deposit is flexible. It depends on if you need to apply for a mortgage, how long you need to raise and transfer funds etc but discuss it with your agent/lawyer and put forward your proposal. Standard time is between 7 and 28 days.

The contract should state that the property is sold free of all charges and encumbrances etc so your lawyer doesn't need to have done all his checks before you pay the 10% - just make sure you pay it to your lawyer and then if anything is amiss and the purchase cant go ahead, you wont have any problems getting it back. Some of the information is not obtained until just before signing anyways (community fees outstanding and community certificate - final mortgage amount outstanding etc.)

So the full 10% is not required up front but saying that you shouldn't be paying anything at all unless you are sure you have found the right property and are happy with the price and terms/conditions of the sale. Additionally the 10% is not set in stone either. I completed a sale of 245,000€ two weeks ago and the full deposit was for 5,000€. This is what the seller requested and the buyer was happy with this. So it is up to the buyer and seller although 10% is standard and most sellers will expect this.