Conveyancing Process - New Properties
We have tried to include as much information as we possibly can about finding and buying property in Gran Canaria, and broken it down as far as possible into the different stages, that you as buyer have to go through, in order to reach the completion stage of your property purchase.
This page may help you with yet another aspect of that decision. That is the answer to the question, Do I buy a property that is already built and being lived in (this called a resale property) or do I buy a new property.
There is no clear answer, but for your consideration, when buying a new property you can have it built to your specification. You are able to tell the builder what you want included and the the features you want changing, whereas if you buy a property from a private owner, you are buying what is already there, right down to the colour of the paint on the walls.
You also have the added peace of mind, that if something goes should go wrong with your new property, for a time after construction has been completed, the builder will have to return to attend to the repairs. Buying a private house already occupied, you are of course buying what is there, and it it is unlikely to come with any guarantees.
The conveyancing process for n new property is somewhat different to that of a private property. We would recommend you read the page conveyancing process - resale property, so that you can compare the differences, and make the choice that is right for you, when you finally the decision to begin buying a property.
Buying a resale property requires all the checks, mentioned throughout the Buying Process section of the website, particularly on the Protecting your interests page, some of these checks are not carried out when you are buying a new property, and the conveyancing process is different. However buying a new property brings different pitfalls that need avoiding, and offers different opportunities for things to go wrong.
By law, a developer must give any buyer a bank guarantee, called an Aval Bancario. See the Protecting Your Interests page.
Whilst this is a legal requirement, the Asesor (legal Adviser) or lawyer must push the developers lawyer into providing written confirmation of the precise level of the Aval Bancario (bank Guarantee). Be aware that if a developer can stall your Asesor (legal Adviser) or lawyer, and sidestep providing this information, he probably will. This is to protect the buyer and his investment against the developer going out of business. Failure to have this written confirmation will leave a gap in your paperwork, and the result could well mean that you are exposed, compromised, and potentially, if things should go wrong, very out of pocket.
Your Asesor (legal adviser) or lawyer should also obtain a licence that states that you may occupy the property as place to live in, before you part with the final payment. This licence is crucial.
Local Town Hall procedure can be lengthy, and drawn out, and this can mean that money may be required before the new owner is in possession of these important items.
Finally, the new owner will receive from the Town Hall, a Valor Catastral. This is a certificate which quotes the value of your property. You need the Valor Catastral when it comes to paying your IBI. These are local taxes. See the Purchase Costs and Taxes page for an explanation of this tax.