Property Registration Office

Category: Finance, Real Estate.

Appointing a solicitor in Tenerife. The agency or lawyer has the responsibility to gather up- to- date receipts and to see that there are no pending debts on the property.

It is vital to appoint a solicitor to assist in your Tenerife property purchase, we always appoint an independent conveyancer who will then carry out all searches on the property, obtaining all the necessary paperwork, to confirm that there are no outstanding debts or embargoes on the property. The paperwork gathered includes: Nota Simple( Confirmation of ownership and any mortgages or embargoes) I. I. (Local council rates) Electricity and water receipts up to date. Community fees receipts up to date, signed and approved by the President of the community of owners and the secretary. Once the deeds to your new home have been signed, you need to obtain your NIE number. Copy of the deed( Escritura) NIE number( Numero de Identificaci�n de Extranjeros) . This is a simple process which is needed to register the property.

Water, Electricity, Community charges, Telephone, Rates etc. An NIE number is also needed to change the household bills into your name, i. e. Applying for a Bank Account in Tenerife. Help is also on hand to set up Direct Debits for your household bills, so you have peace of mind that all your bills are being paid whilst you are not here in Tenerife. The cost of opening a bank account for non- residents is around �10 for the administration fee. Applying for a Mortgage in Tenerife.

Mortgage rates in Tenerife tend to be amongst the lowest in Europe, and are currently around 75% . You can choose to apply for a mortgage in Tenerife or from the UK. Applying for a mortgage in Tenerife is a straight forward process, as in the UK. The level of mortgage offered is directly dependent on your financial status and also the declared value of the property you wish to purchase. You will need to prove that you have an income or sufficient funds to pay the mortgage. There are generally 2 levels of mortgage offered, one for residents and one for non- residents. We must point out that banks in the Canary Islands do not value a property the same as in other countries.

For non- residents the mortgage offered is up to 70% of the bank valuation, for residents it is usually around 80% of the bank valuation of the property. Rebuilding costs play an essential role in the official valuation purpose of mortgage loans. Valuation will cost approximately 250�. 1% mortgage opening commission. Costs involved. Insurance will vary from 150� to 350� per year. (Tenerife Property Consultancy will be able to recommend and arrange adequate insurance for you) Notary and registration of the mortgage. The financial information requested is minimal and a mortgage is available whether you are self- employed or employed. Provided you submit the requested financial information, the mortgage can be available within 10 to 15 working days.

It does not reflect your country of origin. Once you have decided on the property you wish to purchase and the terms and conditions have been negotiated with the vendor then a deposit of 10% of the purchase price is required to secure the property and as official confirmation of your intent to purchase that property. Buying a Property in Tenerife. The remaining 90% is payable on the signing of the title deeds before the Notary. These can vary dependent on the constructor. If you are purchasing a new construction then the constructor will ask for stage payments to be made on the property.

Normally an initial reservation deposit is required. The balance of the monies will be in stage payments, which are usually a further 30% on commencement of the foundations, 30% , once the construction reached roof level and the final 30% on completion at the time of signing the escritura( Title deeds) . This is then normally made up to 10% within 30 days of the contract date. Your appointed solicitor will then carry out all necessary searches on the property. Once the searches on the property are satisfactorily completed and the deposit has been paid in accordance with the terms and conditions of the contract then the title deeds are signed by both the buyer and the seller before the Notary. To ensure that it is owned by the vendor, it has planning permission, and there are no outstanding debts or charges on the property.

The Notary( Notaria) This is a solicitor appointed by the Spanish government to witness the signing of all legal public documents. He represents both the buyer and the seller. In this case the title deeds( escritura) of the property. The Notary fees are around 2% of the purchase price of the property and must be paid at the time of the signing of the deeds. The purchaser will receive an initial legal copy of the title deed which is signed and stamped by the Notary. The Original signed document is retained by the Notary who will apply for a formal change in the land registry.

The official title deed can take a while to be processed and until then this is your official proof of ownership and must be kept in a secure location. These are in addition to the sales price of the property and range between 8- 10% of the sale price. Legal Costs and Taxes. They are as follows: Transfer Tax. This tax must be paid within 30 days of signing the title deed. This is paid by the purchaser and is a standard 7% tax applied to the declared value of the property. Transfer tax is calculated on the increase in the value of the land from when it was last sold.

Notary fees- Fixed scale of charges based on the price of the property purchased. The calculation is based on the ratable value of the property and is a one- off payment. (Impuesto sobre Tramisiones Patrimonales y Actos Juridicos Documentados- Mod 600) of the new declared value on the deeds( equivalent of VAT) when buying a re- sale property. 5% if new and Stamp Duty 5% of Mod 600. Property Registration Office. This is a tax levied by the Town Hall and is based on the surface area of the land, against the annual increase of the property since the previous sale, on the cadastral value and on the date of the previous escritura. Plus Valia( added value, land/ capital gains tax) . Rates.

These are paid yearly and are generally much lower than the UK. This is like the old English rates system and is based on the declared value of the property. Community Fees. These are paid in respect of services i. e. the complex swimming pool, security, street lighting, community gardens etc. These are payable quarterly and vary dependent on the property. FREQUENTLY ASKED QUESTIONS.

A private document signed between the buyer and seller. What is a sales agreement? It must reflect ownership of the property, legal definition of the property, the exact dates of deposits and completion, currency of the transaction( euros, pounds etc) and penalty clauses. If there is a mortgage on a property. What happens if there is a mortgage on the property I want to buy in Tenerife? Before the signing date at the Notary, your agent or lawyer will have to inform the holding bank to prepare cancellation costs, amount and interest due from the seller. Please note that once the bank has collected the last payment.

On the day of the signing we will be asked to prepare a bankers draft for the amount due, to cover the mortgage etc, for the seller. You should make sure that the cancellation deed is duly registered in the Land Registry. Whilst we endeavour to ensure that the information is correct at the time of publishing this information is intended for guidance only. When we sell a property in Tenerife do we have to pay tax? a) Tax regulations require the buyer to withhold 5% of the price on the escritura and to pay it to the tax office when buying property from non- resident vendors. b) Capital Gains.

A Good Florida Realtor Goes The Extra Mile

Category: Finance, Real Estate.

Choosing a real estate agent can be a daunting task for the Florida home buyer. Is it best to work with a large agency or a small one?

With so many agents and agencies to choose from, it s easy for a buyer to feel overwhelmed and unsure of what qualities they should be searching for. Will their chosen realtor follow through on all of their promises? All of these questions are valid and should be fully explored. How do they find a realtor with a good reputation and a commitment to serving their clients needs? That is why it is so important to choose carefully and do your homework when searching for a realtor. A good Florida realtor should be trustworthy. When selecting the person who will help you to purchase the perfect Florida home, it definitely pays to shop around.

Finding a realtor you can trust should be of the highest priority when searching for a new Florida home. A good realtor takes the time to provide their buyers with the highest level of service, and is out for more than just a commission check. You need to feel that your realtor is looking out for your best interests, and is dedicated to making your Florida home purchase a pleasant experience. A good Florida realtor answers all of your questions. You don t want to simply call the first realtor you see on a billboard or in the Yellow Pages. When searching for your realtor, you should be prepared to interview several potential candidates. This should not be a hasty decision.

Weigh carefully whether you trust what this person is saying, or if it sounds like they are just telling you what you want to hear. When interviewing potential realtors, look for an individual who patiently answers all of your questions, and never makes you feel like you are wasting their time. A good Florida realtor can provide references. If a realtor hedges on giving references, or disregards your request, it is best to move on to the next candidate. Realtors are like any other business person: they are happy to offer references from satisfied customers. Word of mouth is powerful advertisement because only previous customers can tell you if a particular realtor can deliver on all they promise. Of course all brokers are going to want your business just as much as the realtor working under them.

A good Florida realtor has the full support of a good broker. However, it is possible to determine a lot about an agency and the realtors working there by having a conversation with the broker. Are you comfortable with their philosophy and sales record? Do they take the time to answer your questions? Does the broker leave you with a sense of confidence? Finding a realtor with excellent communication skills can save you a lot of time and hassle when you are searching for your new Florida home.

A good Florida realtor has excellent communication skills. A good realtor is able to explain the home buying process in a way that is clear and understandable. A good realtor doesn t show their clients homes that are too large, or out of, too small the buyer s price range. They should listen carefully to your needs, and look to meet them appropriately. A good Florida realtor anticipates their client s needs. But to a certain extent, a good realtor should be able to anticipate their client s needs through their knowledge of what their client is looking for, as well as what is available on the market.

As a home buyer, you share a certain amount of responsibility in making sure that your realtor knows what kind of home you are looking for. For example, a realtor should provide information on school districts and local activities for children if their clients are searching for a larger family home. Some realtors only do the bare minimum for their clients. A good Florida realtor goes the extra mile. They rush through the showings, and then pressure their client to quickly make an offer on a home without giving them time to think things through. A good Florida realtor focuses on all of the little things that help to improve their client s home buying experience. This type of realtor is only concerned with collecting their commission check.

They offer advice on loan officers, and reputable home, title companies inspectors. A good Florida realtor is concerned about building an excellent reputation as a trustworthy ally in the Florida home buying process. They make sure to appear on closing day to answer any of their client s last minute questions and to address all concerns. This is the type of realtor you are searching for, and this is why it pays to thoroughly check out any realtor before hiring them. Copyright 2006 All Right reserved by Tom Beaty

How Many" For Sale" Signs Are In The Area

Category: Finance, Real Estate.

You have some important things to consider when searching for the perfect home to buy in the San Fernando Valley. Your Buyers Agent can be especially helpful with this because they can refer you to reliable resources to gather important information you will need to make the right decisions.

It can be a distressing task to sort through all of the homes on the market as well as deciding on what neighborhoods in which to focus especially if you are unfamiliar with the area. It is important to research neighborhoods thoroughly as well as drive through certain areas to get an idea of which ones might suit you best. Type of area- suburban, city or small, rural town etc. c) Schools- test scores, number of national merit scholars and college students, school performance and student spending. d) Crime statistics- you can usually get this type of data by calling your local Police Department- Public Affairs or visit their website. e) Conveniences and amenities- proximity to parks, transportation, nightlife, shopping, employment, restaurants, schools, recreation and places of worship etc. Here are some important factors to consider are: a) Homeowner statistics- average family income, occupation and education, family type levels. b) Profile of the neighborhood- amount of commercial development, density. There are many ways to analyze areas you might be interested in. How many" For Sale" signs are in the area?

One way to go about looking at a particular area is to determine the" supply and demand" . How many of these properties have sold? Are homes selling with multiple offers? What is the ratio between listing prices to sales prices? In popular areas home values are usually higher than others. You might also consider buying a townhome or condo in the beginning in order to live in a better area if finances are a concern.

If affordability is an issue you may try to look in an area that has not been discovered yet or that is on the outskirts of a metropolitan area. NAR statistics show that 80% of consumers are going online to websites such as Realtor. com, real estate brokerage and individual agent s sites to gather information on homes before contacting a Realtor. You will want to narrow your search as much as possible otherwise you can be" searching for the one" for a very long time. This statistic is growing daily because the internet has made is ever so easy to access important information online such as buying a home, neighborhoods, crime statistics, schools, etc. To start off you should write down all of the important facts about each area you are considering on paper side- by- side to make it easier to analyze. Take notes on each property you view to be able to analyze them in detail later. Once you have selected the homes you want to see it is time to make an appointment with your Buyer s Agent to show them to you.

Once you have compared each home and have selected the one you are most interested in it might be time to write an offer! If the property is a new listing and there is a lot of interest you might have to move fast otherwise you run the risk of possibly losing it.

So Will Another Interest Rate Cut Be Enough To Bring Back The Mortally Wounded Housing Market Back From The Brink Of Death

Category: Finance, Real Estate.

As the sub prime mortgage debacle continues to play out across the United States, the Federal Reserve has opted to cut interest rates by half a percentage point, from 2This cut makes all loans relatively cheaper, thereby encouraging a pantheon of economic activity to increase, hopefully in the troubled housing market.

This collapse triggered a recession, which took three years to completely stabilize. Such tactics have been used with relative success in the past, most notably in 2000 when the US economy suffered a major downturn in the wake of the dot- com collapse. Since 2003, the Fed has slowly brought interest rates up in order to help keep dangerous inflation and reckless consumer spending down. Yet the slow buildup of the interest rates may have occurred too late for them to be high enough to combat the problems in the housing market because the federal interest rate still has a limited and indirect effect on housing purchases, which depend on a myriad of other factors, not least of which is the agreed interest rate on a given mortgage. These effects have been in line with forecasts at the time, showing that the Fed was relatively in touch with potential economic problems. Since those terms are decided between the lender( companies like Countrywide) and the borrower, (regular people) a rate cut can have many positive effects on overall spending without targeting the sickly housing market directly. This is because unlike other, larger areas of the economy like job growth and retail spending, housing loans are tied to many other secondary industries that suffer slumps regularly whenever too many houses are on the market.

Even though the Federal Reserve have made a definitive statement on the seriousness of sub prime mortgage defaults by cutting rates for the first time in four years, they are convening imminently to discuss a further rate cut, of an estimated. 2This rate cut will certainly stimulate some aspects of the US economy, but its effects on mortgages are less predictable. Examples include the auto industry and the household appliance market, which accounts for many products that are still made in the US. Rising interest rates also did little to curb the booming housing market and its aforementioned secondary industries from expanding, possibly to proportions that cannot be sustained. The increasing interest rates of the past several years have had a negligible effect on the ability of lenders to lure millions of Americans into signing up for a sub- prime mortgage, even when as many as one third of those who have these faulty contracts would have qualified for safer prime mortgages. So will another interest rate cut be enough to bring back the mortally wounded housing market back from the brink of death? The Fed works like an opiate- it treats all symptoms by allowing a patient in a lot of pain to get much- needed rest, but does little do address an underlying specific cause.

The possibility exists, but it appears to be unlikely without some other mechanism for assisting the housing market. Most would agree that, despite the rise in interest rates over the past several years, the economy has been relatively robust. The only reason this fleecing of( usually) the poorest homeowners has come to any economist's attention is because of the spread of these faulty mortgages through markets all over the world. Yet the sub prime mortgage issue has gone unchecked for years, while millions of Americans who have bought into the classic dream of owning a home despair and the lender/ broker machine goes on unchecked. Without some degree of governmental regulation over lending practices, and reexamining the credit reporting agencies that allowed risky mortgages to be converted into bonds and securities in the first place, a federal interest rate cut can only do so much. Whether that is enough to stimulate the economy away from a recession is still unfortunately up in the air.

Buying A House Is A Long Drawn Process

Category: Finance, Real Estate.

Buying a house is a long drawn process.

Shopping around for an affordable house is only among the last steps that have to be taken. It could take anywhere from two months to longer. A good deal of preparatory work must be carried out prior to that. The house buyer will have to see to it that he possesses enough money to make a down payment. A potential house buyer has to meet with the real estate agents and the loan providers. He also has to ensure that the ensure that the price that he is being quoted for the house is an accurate one. There are many issues that must be taken care of both before and after the house- shopping process.

Thus, the process of house buying is not the easiest thing. In fact, even before one starts looking for a home, one must make sure that one's credit is in order, that there are sufficient savings to pay for the down payment, and that the amount on the salary slip is enough to pay off the monthly loan installments. Thus, the mortgage has become essential. Most of us cannot afford to purchase a house using liquid cash. However, mortgage lenders generally require every house buyer to take care of a lot of formalities. A bad credit score would mean that you would not have access to the biggest discounts in the loan markets. For one, the credit score of the person seeking to buy a house should be good.

Lower rates of interest and flexible terms of repayment are easily available to people who have a good credit score. Putting all your documents in order is also a necessary step. Those with bad scores have to make do with deals that can be a strain on the pocket. Make sure that you have all your documents ready before you submit that loan application. The mortgage being a long term involvement between the lender and the borrower, the former must do a good deal of homework to ascertain the creditworthiness of the latter. A house mortgage usually requires far more documentation than do other kinds of loans both secured and unsecured. Thus, make sure you maintain good credit.

At the same time, make sure that you think about your own budget first. This would go far in making it simpler for you to secure great housing loans. What is the point of purchasing a house and then promptly being broke for months after that?