Volker Horch: In most cases, there are two steps to follow to purchase a property. First, a private option-to-purchase contract is drawn up. This contract serves to establish a mutual commitment between seller and buyer until the purchase is signed via a public deed. This process allows for a binding contractual obligation without the need for both parties to be physically present in La Palma.
Volker Horch: The option-to-purchase contract regulates all preparatory procedures, such as financing, land regularisation, and pending registrations. It also sets out the terms of the final contract and the date for the definitive purchase before a notary. Additionally, this option-to-purchase acquires legal power once a deposit is made, usually 10% of the total purchase price.
Volker Horch: Indeed. On the one hand, the buyer commits to forfeiting their deposit should they withdraw from the purchase. On the other hand, the buyer could claim double their deposit if the seller breaches the option-to-purchase contract. This establishes a mutual legal obligation.
Volker Horch: The purchase contract is signed no later than the maximum date specified in the option-to-purchase. It is executed before a notary, with both parties either present or represented, and the transaction is legally formalised through the signatures of both parties, payment of the purchase price and the notarial public deed.
Volker Horch: Palminvest initiates and supervises the entire process, from presenting the current title deed at the notary to the final property deed signed by the new owner.
Volker Horch: From that point, the notary handles all procedures related to the legal transfer of the property and submits the deed to the property registry. After the payment of the transfer tax is completed, the change of ownership is recorded within the registry in approximately three weeks. Then, you can collect the document at the notary office.
