Home seller's guide

Welcome to our unique guide to a successful property sale in Gran Canaria! Our simple guide provides you with relevant information, from local estate agency practices to questionable estate agent tactics and consumer rights in Gran Canaria.

Property sales

Why update me?

Real estate in Gran Canaria is very different from Norway. Navigating an unregulated and unfamiliar market with different reale estate practices can therefore be a challenge. We give you an overview of the sales process, the housing market, potential pitfalls, consumer rights and estate agent tactics to watch out for, as well as other important tips to save you time and frustration.


Sara Nymo
Broker, RE/MAX UTLAND
License from the Financial Supervisory Authority of Norway
Spanish certified real estate agent

Industry words

These words are often used in legal documents and in communication between agents and real estate professionals.

- Agente Inmobiliario: Real estate agent
- Compra-Venta: Purchase and sale
- Arras: A type of agreement in real estate transactions
- Vivienda vacacional (VV): (often used in conjunction with a rental license)
- Escritura Pública: Registered deed
- Nota Simple: Simplified printout from the property register
- Reserva: Reservation (of a property)
- Tasación: Property valuation
- Hipoteca: Mortgage loan
- Obra menor: building work that does not require a comprehensive building permit
- Obra major: building work that requires an extensive building permit
- Impuesto sobre Bienes Inmuebles (IBI): Property tax
- Impuesto sobre Transmisiones Patrimoniales (ITP): Transfer tax on second-hand property
- Impuesto General Indirecto Canario (IGIC): Value Added Tax (VAT) on goods and services

UK vs Gran Canaria

Unregulated

In Gran Canaria, real estate is an unregulated industry, meaning that there are no specific competence requirements for real  firms and agents.

Titles are not protected and there are no requirements for security of client funds. Many agents operate without relevant education and external regulatory authority, leaving room for diverse practices and a lack of ethical guidelines.

We strongly recommend doing thorough research, using agencies with trained managers and reading customer reviews before engaging a agent. For example, you can ask the agent about their previous work experience and contact previous employers. This can give you valuable answers.

Responsibility roles

In Gran Canaria, there are different players who have different responsibilities in a real estate transaction. Here are some of the most important ones:

Real estate agent: Responsible for mediating the real estate transaction between buyer and seller. They market, organize viewings, negotiate prices and help prepare the contract. 

Settlement office/lawyer: Is responsible for controlling all legal and practical aspects of the sale. They check the legal status of the property, agreements, make sure all taxes and fees are paid, and can assist with all practicalities before, during and after the transaction. We offer complete sales assistance and management of the entire sales process from your home country. 

Notary Public: Is a mandated public impartial body consisting of a lawyer with special training as a notary. Its role is to verify the identity of the parties, ensure that the contract is legally valid and register the purchase in the property register 

Property register: Records all property information, including ownership and mortgages.

Valuer: Normally used by banks for mortgages to verify the value of the property.  Appraisals are lower than market value and are therefore not used in home sales. 

Bank: Responsible for providing a loan to the buyer, if necessary, and for making the payment to the seller.

Property viewings

Views: Private viewing: Generally, we do not organize public viewing days, but private viewings by appointment. This provides a more personal and tailored experience, but also requires more planning. Some agents also offer live viewings that film the property by cell phone for interested parties who are not on the island. 

Viewing confirmation: Our agents follow the practice of having interested parties sign a viewing confirmation before the viewing. This confirmation ensures that the seller and agent have an overview of potential buyers who have physically attended the viewing, and can make an offer after the assignment agreement has expired. A viewing agreement also helps to clarify the customer relationship and protect the estate agent's work. It is important to note that this agreement does not restrict the seller's freedom to use other estate agents.

Quality of service

The choice of estate agent can make a significant difference to your experience and the outcome of your property sale. It's important to appreciate the importance of having an experienced and dedicated agent who offers a professional and comprehensive real estate service and extensive marketing throughout the sales process. A skilled agent will be able to help you maximize the sale price and ensure a clear and efficient process: 

Valuation. Correct pricing is crucial to a successful sale. An experienced agent has extensive knowledge of the local real estate market, including demand, prices, available property types and trends. Choose a agent who offers professional valuations to ensure accurate and realistic pricing. 

Guidance. A knowledgeable agent will be able to answer all your questions, advise on the selling process, and guide you through every step. This can be indispensable in ensuring a hassle-free and positive experience. 

Communication. An experienced estate agent is able to keep you updated throughout the sales process. They should inform you about viewings, provide feedback after each viewing and regularly create a report with an overview of all activities related to the property. If you feel that you are not receiving information, it may be due to a lack of feedback routines or that the estate agent is not sufficiently focused on the sales assignment. In this case, it may be appropriate to raise this with the estate agent early in the process. 

Marketing. To sell property in the tourist areas of Gran Canaria, broad international marketing is essential to reach potential home buyers across Europe. A professional photographer and extensive marketing are important investments for the agent. It is also important that the agent is part of a team that is knowledgeable about different cultures and fluent in the languages to ensure that buyers feel safe and understood. Scandinavian, English, German and Spanish are particularly important languages, as they cover 94% of home buyers. 

Negotiation support. The agent have an overview of interested parties and can provide advice during the negotiation process, which can save you time and money. 

Legal and financial advice: An experienced agent can also help you navigate the legal and financial aspects of selling a property.

The sales process

Our practice

The sales process in Gran Canaria is different from the process in Norway. It may therefore be important to consult an experienced estate agent who can inform you about these different processes. This will help you feel more confident and have better predictability throughout the processes.

Step by step

It's important to note that the sales process can vary depending on the agency. Here is an example of the process that we practice: 

1. Contacting an agent - Measure service and knowledge level
2. Home value - Get a professional valuation in today's market 
3. Assignment agreement - Use one dedicated agent
4. Prepare for sale - Make your home functional and maintainable
5. Prepare for viewing - Clean and decorate for viewing
6. Offers - Assess demand and offers
7. Sales agreement: - Make offer binding, sign and receive 10% of the purchase price
8. Documents - Obtain certificates and receipts
9. Inspection - Make the property available for final inspection 
10. Takeover - Sign the deed at the notary and hand over the keys
11. Money transfer - Receive the sales settlement
12. Change of ownership - Help change ownership of water, electricity, insurance and possibly in the condominium
13. Expenses - Pay value added tax and send deductible expenses to the settlement office

We offer a Norwegian authorized agent with Spanish certification and a complete sales package, from anywhere in the world. This enables a safe and easy home purchase abroad.

Use one agent

Practice

Navigating a real estate sale can be challenging. Different languages, advice and major differences in valuation can occur. There are many firms to choose from, spend some time finding the professionals. 

Outdated practices:  While some still believe that more agents means more marketing and faster sales, it can actually lead to a confusing, time-consuming and costly home sale, without motivated agents actively marketing your home.

Choice of estate agent: We recommend that you engage a larger estate agency that can offer quality, broad international marketing and has a dedicated team that speaks your language and the language of home buyers, and can demonstrate top customer reviews.

Exclusive sales assignments

Large and well-established firms normally prioritize dedication and quality to each customer by entering into exclusive assignment agreements where the seller commits to using one broker. If you choose to use one broker, you don't have to worry about a number of challenges that in most cases lead to a negative experience and a potential financial loss.

Non-exclusive assignments

Newly established or small firms houses acquire so-called non-exclusive brokerage assignments to increase their housing portfolio and earnings potential in competition with well-established brokerage firms. Understand the practical and financial implications before you consider involving multiple agents. Here are some of the most common consequences:

Risk: Non-exclusive sales assignments can be considered high-risk for a number of reasons, including the fact that the firm may lose money if another agent is successful in selling the property. 

Marketing: The impression of the property can be negatively affected by agents who have poorer quality marketing than others. This often leads to estate agents limiting their resources.

Skepticism: A consequence of this practice is that potential buyers may interpret it as the seller having difficulty selling the property, which can create uncertainty and lead to lower offers. This is because multiple agents can be perceived as a sign of problems, and it can also give the impression of possible faults or defects with the property. 

Selling price:  When potential home buyers see the same property being marketed by multiple agents, they tend to take advantage of the situation and create competition between them. This can lead to agents competing to sell the property at the lowest possible price. 

Unclear:  Agencies do not communicate. This leads to no one having a complete overview, resulting in the loss of fundamental factors in home sales such as handling and coordinating inquiries, viewings and offers that ensure an efficient home sale at the best possible price. 

Confusing: It's understandable that potential home buyers may experience frustration when they see the same property being published by multiple agents with different descriptions, different property information and sale prices that are not updated at the same time. Many buyers become confused and choose to forgo homes that are represented by multiple agents. 

Resources: In non-exclusive sales assignments, agents lack a strong desire to achieve sales within the agreed period, which can result in a lack of motivation to spend extra effort and resources to attract interested parties. 

Information: Involving multiple agents in the sale of your property can make it difficult to get regular updates on interested parties, viewings and important feedback from interested parties. You'll likely need to follow up with multiple agents to get information on the status of your home sale.

Less in more. Some may believe that a large portfolio indicates a strong and successful firm, which is why some agencies take on non-exclusive assignments, that multiple agents can sell and take on overpriced homes, which can lead to certain disadvantages for home sellers. A large portfolio can spread attention and resources more thinly, which can lead to less focus on each individual property.

Focus on the mission. Selective portfolios, on the other hand, provide more dedicated attention to each individual property. The agent has more time and resources to focus on marketing, viewings and following up with potential buyers and sellers. Agencies that are selective and focus on sales avoid large and unwieldy portfolios that remain unsold on the market. This increases the chances of a successful sale. 

Not what it looks like. Agencies that are members of the Canary Islands Association of Estate Agents (ACEGI) use a common platform where their properties are displayed on members' websites. This gives the impression that they have a large and varied portfolio, when in fact there are dozens of agencies that distribute the properties between them.

Property portfolio

Housing portfolio. Less in more. Some may believe that a large portfolio indicates a strong and successful firm, which is why some agencies take on non-exclusive assignments that multiple agents can sell and take on overpriced homes, which can lead to certain disadvantages for home sellers. A large portfolio can spread attention and resources more thinly, which can lead to less focus on each individual property.

Focus on the mission. Selective portfolios, on the other hand, provide more dedicated attention to each individual property. The agent has more time and resources to focus on marketing, viewings and following up with potential buyers and sellers. Agencies that are selective and focus on sales avoid large and unwieldy portfolios that remain unsold on the market. This increases the chances of a successful sale. 

Not what it looks like. Agencies that are members of the Canary Islands Association of Estate Agents (ACEGI) use a common platform where their properties are displayed on members' websites. This gives the impression that they have a large and varied portfolio, when in fact there are dozens of agencies that distribute the properties between them.

Preparations

Get ready

It's worth noting that many properties are not prepared for viewing in the way many foreign home buyers are used to. This means that the homes may not have been thoroughly cleaned, styled or decorated for viewing. However, it gives you an opportunity to stand out in a positive way by going the extra mile to make your property stand out by being attractive in both marketing and viewings.

Documents

When selling a property, the estate agent should request the deed in order to make a thorough valuation and prepare a correct advertisement. Furthermore, an experienced agent will also understand the importance of being proactive and will request receipts for later in the process. By being prepared and being able to quickly prepare the sales agreement, this can help prevent the buyer from backing out.

Duty of disclosure

The seller has a duty to provide correct and complete information about the property, including any defects, deficiencies or other significant matters that the buyer should be aware of.

On the other hand, the buyer has a duty to investigate, which means that they must thoroughly familiarize themselves with the condition of the property, documentation and other relevant matters.

Our robust sales agreements contain a clause stating that the property is sold "as is" without any significant defects or deficiencies that have not been disclosed in advance. This gives you a simpler process should any complaints arise.

Checklist before sale

1. Condition. Check the general condition and maintenance needs of the property, including the electrical system. Look for any visible damage or problems that need to be addressed. 

2. Maintenance. Investing in removing any moisture damage is an important measure to attract potential buyers, as moisture damage is often one of the biggest concerns for home buyers. In addition, you may want to paint ceilings and walls as needed to give your home a fresh and inviting look. Adjusting cabinets, handles and making minor repairs can also help make your home appear more functional and well-maintained. 

3. Refurbishment. It is usually recommended not to renovate the home before selling. Renovation projects can often be more expensive than expected and reduce the potential gain from the sale. Many home buyers also prefer to add their own touch to the property, if the price is not too high. An experienced estate agent can advise you on what is most appropriate in your case. 

4. Assets. It's a good idea to remove personal items and neutralize the property before viewing. This includes small decorations, family photos and other personal belongings. By making the home more neutral and impersonal, it makes it easier for interested parties to visualize their new home.  

5. Equipment and lighting. It is important to check that all equipment in the property is working properly before the viewing. This includes checking that the air conditioning, fans, machines and lights are working properly. By making sure everything is working properly, you contribute to a positive viewing experience for potential buyers. It also eliminates uncertainty and focus on any negatives. 

6. Smell and cleaning. To create a good atmosphere during the viewing, it is important to remove strong smells and make sure the property is thoroughly cleaned. Avoid using scented chemicals, as this can be perceived as an attempt to hide other smells. However, natural smells such as coffee, flowers and fruit can contribute positively to a pleasant atmosphere. Make sure to air out the property well before the viewing. 

7. Entrance area. The viewing starts outside the property, and it is important to remember that first impressions are crucial. Take the time to ensure that the entrance area is well maintained and inviting. Clean the door and windows and consider whether there is a need for any small upgrades or decorative elements that can make the entrance more appealing. 

8. Consult. If you're not present on the island during viewings, it's important to communicate with your agent about how you can work together to ensure the best possible viewing experience. The agent may have a network of trusted people who can help make sure the property is ready for viewing, even if you are not physically present.

Prospectus

Before viewing the property, ask the estate agent for a complete prospectus, which should include: photos, description, asking price, year of construction, energy labeling, property number, address, form of ownership, property tax, plot regulation, registered and possibly unregistered areas.

Check for any discrepancies between what has been agreed and what is stated in the prospectus, and whether you are satisfied with the property advertisement or want changes.

Competition

It is important to have a dialog with the estate agent to evaluate the market situation. If there are similar homes for sale in the market and demand is low, it may be necessary to adjust the price and adjust the marketing plan to sell the home. Together, you can work out a strategy that best suits your situation and objectives.

Property value

The market

In a market characterized by the aftermath of the pandemic, a weakened global economy, high inflation and higher interest rates, guidance from an experienced real estate agent is essential to make good decisions and ensure a successful property transaction at the best possible price. 

Economic conditions. Accurate property values and good advice require an understanding of demand and trends based on economic insight. Professional agents either have their own insight into micro and macro economics or rely on a team with financial expertise for in-depth advice in the complex market. Engaging a professional local agent with insight into the European economy increases the chances of a successful sale.

Pricing

One of the biggest challenges in property sales in Gran Canaria is mispricing. Estate agents sometimes rely on subjective assessments, outdated property sales and a general feeling of the market, rather than thorough analysis and objective data. It is therefore crucial to ask for a thorough valuation from your estate agent.

If you are in doubt, ask for documentation of the factors and data on which the valuation is based. This will give you a better understanding of the home's value and help you secure a fair price that can contribute to a successful home sale.

Missed target

A specific example of mispricing is a detached house where we carried out a valuation in 2023 that was €73,000 higher than what another agency had recommended to the seller. The seller was skeptical of our assessment, but upon request we were able to send documentation showing the thoroughness and careful analysis that formed the basis of our price assessment. Fortunately, the seller chose to cooperate with us, and the result was that the property was sold at the asking price in 27 days.

This example illustrates our ability to ensure optimal pricing and conduct an efficient sale. It also underlines the importance of choosing a agent with knowledge, experience and thoroughness in valuations.

Unregistered areas

If the property has areas that do not appear in the deed, it is a good idea to clear this up and give buyers peace of mind that the property is legal. In addition, a property with a certificate or full and approved areas can often achieve a higher sales price. Talk to an experienced estate agent about how to proceed.

Extensions. It is important to be aware that after 4 years, extensions or expansions of the home's area may be "protected" and the municipality cannot request a reset or issue fines. This is done by engaging a technical architect to verify the extended areas. This is usually a reasonable and uncomplicated process.

Update the deed. If your property is not part of a condominium, you can take the certificate to a Notary Public who will send a notification to the property register. As a result, you will receive a new deed that includes the new areas.

Property details

If the estate agent has checked the property details properly before advertising, there is a copy of the simplified deed, also known as a "nota simple", which contains important information about:

Plot regulation. Shows what the property can be used for and any restrictions.
Built area. Indicates the total size of all buildings on the property.
Plot area. Is the total area of the property, including both buildings and undeveloped areas.

If in doubt, don't hesitate to ask your estate agent to send you a copy of the simplified deed. This way, you can be sure that the actual size and characteristics of the property are as advertised and that any additions or changes are legally registered.

Meglertaktikk

Scare tactics

Unfortunately, there is a bad culture that is particularly prevalent among Scandinavian-speaking estate agents. Some companies, both Norwegian and international, use tactics to ensure that sellers do not use other agents. These tactics involve telling potential customers horror stories about other agents.  Therefore, be aware of scare tactics, it is a clear red flag. 

Another tactic is sowing doubt with vague negative comments about other agencies. Don't hesitate to ask the agent to be specific in their criticism, and assess for yourself whether this is done deliberately.

Estate agents who are affiliated with reputable estate agency chains are subject to ethical guidelines and do not normally use such tactics. Instead, choose a agent who focuses on providing accurate, clear and honest information and has a desire to help you make the best decision.

Valuation

Some agents use unrealistically high valuations as a lure to secure sales assignments, resulting in overpriced homes that remain unsold. In order to sell the property, the agent will eventually recommend a price reduction to meet "market changes". This is a well-known tactic that unfortunately affects far too many people every year.  It is therefore important to be aware of estate agents who make big promises about the selling price. If you are in doubt, ask for documentation for the recommended price. This will help to avoid pitfalls and ensure that you have a realistic price that gives you a greater chance of a successful home sale.

Pre-reservation agreement

Some estate agents use pre-reservation agreements with buyers. These agreements involve the buyer paying an amount to the agent after offer, pending the negotiation process with the seller. If the seller does not accept the offer, the amount is returned, but if the buyer withdraws, the buyer loses the entire amount.

It is important to be aware that such agreements can be unethical, as the amount goes to the agent who is not a direct party to the transaction, and sellers are often unaware that such agreements are being made.

Not opening the doors

Many agents claim that they work with other agents when they have potential buyers, instead they often make themselves unavailable and find it difficult to arrange viewings. They do this to avoid sharing their commission with other agents, despite the property remaining unsold on the market. This is often contrary to how the agents sold themselves to get the commission. 

Large estate agency chains require their agents to work in accordance with a code of conduct. This contributes to more interested parties and a faster sale at the best possible price.

Real estate associations

In Gran Canaria, there are estate agent associations that claim to offer security and ethical standards for their members. Many members do not have the relevant education and some operate in a gray area with unbalanced deals, avoid transparent real estate transactions and practice "black money". This can result in heavy fines and prison sentences for those involved. Agents flagging membership of the Canary Islands Real Estate Association is therefore not a guarantee of safety. You should therefore be skeptical and do your research.

Selection of properties

Members of the Canary Islands Association of Estate Agents (ACEGI) use a common platform where their properties are displayed on members' websites. This gives the impression that they have a large and varied portfolio, when in fact there are dozens of agencies that distribute the properties between them.

Why choose us?

Leading in Europe

RE/MAX is an international real estate chain with a significant presence in Europe. In Gran Canaria we have 10 offices and RE/MAX UTLAND in Patalavaca is the chain's specialized real estate office for international clients interested in buying or selling property in Gran Canaria.

Our global brand gives many people an extra degree of security when they are abroad. For example, we have offices in Norway, Sweden, England, Germany, Austria, Switzerland, Italy, Belgium, the Netherlands and France.

Achievements

After 15 years of local experience, we joined the RE/MAX chain in 2017. In 2018, we already had the top agents in Spain among 2200 RE/MAX brokers from our office, and in 2019 our offices became number 3 out of 163 offices.

In 2022, our agents were again awarded with both first and second place among 2200 RE/MAX agents. This is a testament to our dedication and expertise in delivering the preferred real estate service in Gran Canaria.

RE/MAX has been awarded the Consumer Award Spain in 2019, 2020, 2021 and 2022. This prestigious award confirms RE/MAX's commitment to customer satisfaction and their ability to deliver first-class real estate services in Spain.

Authorization

Using a Scandinavian and Spanish certified agent who speaks your language when selling property abroad gives you clear communication, insight into local trends and guidance through legal processes.

This makes the process safe, time-saving and efficient. All properties and contracts are checked by our General Manager, Sara Nymo, with 10 years of experience and only in Gran Canaria. This ensures that you are in competent hands across national borders.

4.9 out of 5 stars

By listening to customer feedback, we have succeeded in becoming Gran Canaria's friendliest agents with an average of 4.9 out of 5 stars in customer reviews.

Quality of service

RE/MAX UTLAND has a track record of no legal complaints or claims on home purchases. We are proud of this track record in the real estate industry, and it is a testament to our commitment to delivering outstanding service and ensuring a safe and positive experience for our customers.

Help from A-Z

By having a dedicated, trained RE/MAX agent on your team, you save time, avoid frustration and get a safe and clear home sale in Norwegian.

With our complete sales package, you get help with everything in a Spanish-speaking country with unfamiliar laws and regulations, even if you are in your home country.

We have a solid local partnership that opens doors and we are happy to share our commission with external agents who have potential buyers that lead to a sale.

The sales assignment

Obligations

It is important to note that the content of the commission agreement may vary depending on the agency and individual negotiations. When entering into an assignment agreement, you should ensure that there is a mutual obligation and that you have the option to terminate the agreement quickly if the broker does not fulfill their obligations. This will ensure that you are not tied to a broker you are not happy with for up to 12 months. Furthermore, it can be challenging to achieve the same sales price on a previously marketed property. It is important to thoroughly review and understand the assignment agreement before signing it. Ask for the assignment agreement to be written in your language.

Duration

Sufficient time. A standard contract period is usually 12 months and can be negotiated. The duration often reflects how much agents invest in selling a property. International agents often work with potential buyers outside Gran Canaria. If there is a risk that a short contract period will expire, the agent will not want to spend resources and marketing to attract interested parties who will later go to another agency to buy the property. Therefore, it is important to give the estate agent time to carry out their work.

Short sales assignment periods. Be skeptical of agents who themselves offer contract periods shorter than 6 months. They often have a plan that includes a clause that automatically extends the duration if the seller does not notify the estate agent in writing by a certain date. This can bind you to a longer contract period than you wanted. The Contracts Act states that assignment agreements cannot exceed 12 months regardless of automatic extension.

Fictitious buyers. Sellers who remember to notify the agent by a certain date that they want to cancel the collaboration may find that the agents informs them of ongoing stakeholders and that it would not be beneficial to cancel the process. Here it is important to be vigilant. To verify the information, the seller can ask for the names of the interested parties in return for confirming that the agents will take a commission if one of these interested parties leads to a purchase by a certain date. If the agents doesn't want to do this, it could be a red flag, and you don't have to worry about missing out on "potential" buyers.

Commission

Industry standard. According to local industry practice, the seller usually pays a commission of 5% + 7% local VAT of the sales price. This commission covers a range of services provided by the broker, including time spent, professional photography, production of videos, preparation of floor plans, comprehensive marketing, organization of viewings, follow-up of stakeholders and effective communication with the seller throughout the sales process. The exact scope of services and quality varies depending on the brokerage.

Well-established firms. Often have greater resources available to invest in systems, quality assurance and comprehensive marketing. They have a wider network and access to an extensive home buyer register with active stakeholders. In addition, they have a team with an established customer base that can help achieve a better sales price faster. 

Newly established/small firms May have limited capacity and compete on price by offering lower commissions. However, it is important to note that a less expensive agents does not necessarily result in the same quality, a quick sale or you being left with more money. In fact, it can actually have the opposite effect. Small firms may also lack important follow-up systems, resulting in a less transparent and more stressful home buying experience.

General information 

1. Identification of the parties: The Agreement will identify the Seller and the Buyer, including their contact details and ID numbers.

2. Duration of the assignment: The agreement will set out the period of time that the assignment lasts.

3. Property information: There will be identification of the particular property to be sold, including address, property number, rooms and areas, 

4. Agencies duties: The agreement will clarify what services and tasks the agent will perform in connection with the sale of the property. This may include marketing, viewings, price assessment, negotiations, communication (viewings, post viewing feedback, regular report on all activities), cooperation with other agencies, etc.  

5. The seller's duties: The agreement will also define the seller's duties and responsibilities in the sales process, such as providing accurate information about the property, making the necessary documentation available, cooperating with the broker, etc.

6. Commission and payment: The agreement will stipulate the broker's commission, which is the financial compensation the broker will receive upon successful sale of the property. It should also specify how much, how and when the payment will be made.

7. Termination: The agreement will contain provisions on how the assignment can be terminated or canceled, both by the seller and the broker, as well as any conditions or fees associated with the termination. If the broker is in breach of its obligations, it shall be specified that the seller may terminate the agreement without paying compensation.

8. Data protection: Brokers follow a strict privacy policy in Spain. You will be informed of your rights and how your personal data will be processed. Before entering into an agreement, you will be asked to sign a privacy statement. This ensures that your personal data is handled safely and in accordance with the law.

Offer

Advice

The estate agent will often have insight into the buyer's nationality and budget, and have an overview of other potential buyers and previous offers. Be open to advice and guidance from the agent regarding bidding and market conditions.

Cultures

Due to cultural differences about offers, misunderstandings can easily arise, e.g. aggressive buyers who offer too low can cause irritation. In such situations, it is very valuable to have a broker who can act as a liaison and navigate between different cultures. The broker can give you good advice on how best to proceed.

Non-binding

As offers and acceptances are non-binding, potential buyers are usually not invited to counter offers. Instead, the "first come, first served" principle is followed, which ensures more qualified buyers.

However, we encourage buyers not to offer on multiple properties at the same time, as this may be perceived as frivolous and give false expectations to sellers.

During offers, brokers should provide access to the offer journal upon request, and that the broker does not keep it confidential. This ensures openness and transparency in the process.

The sales assignment

Legal

In Gran Canaria, various types of contracts are used that are not drafted by lawyers and may be legally invalid. Often the sales contract contains errors and omissions or favors one party, which is against the law.

In the event of a breach of contract, this can result in a lengthy legal process, where you could potentially lose significant amounts of money. We only use a legally tested sales agreement (ARRAS) prepared by a lawyer, which protects the buyer and seller.

Furthermore, we offer the sales agreement in the desired language, in addition to Spanish. This ensures that sellers fully understand all the details, terms and conditions of the agreement.

We also ensure that no one has access to the sales settlement, which is safely stored in an independent secured client account, with the publicly controlled body Notary Public.

The sales agreement should provide a clear and complete description of the transaction. This includes:

  • The identity of the parties involved
  • The address of the property and the property number
  • Detailed information about the plot, zoning and areas taken from the deed
  • The broker's commission and the planned date of takeover
  • Amount of compensation in case of breach
  • Legal venue

Be sure to carefully review all details of the sales agreement with your broker to ensure that all aspects are covered and understood.

The parties

In a real estate transaction, it is important to note that the parties are the buyer and the seller. The sales agreement must therefore be signed by both parties on the same document, and it is necessary that all pages are signed. The broker is not a party to the transaction and should therefore not enter into direct agreements with either party, which may render the transaction invalid. It is also not necessary for the broker to sign the sales agreement. The broker's role is primarily to assist and guide the parties through the process as an intermediary.

Money management

It is important to be aware that there are different practices for handling client funds, and several brokers operate with the term "client account" without offering sufficient guarantee for the money.

Our procedures ensure that buyers never pay directly to brokerages, regardless of the amount. To be on the safe side, you should use a brokerage house that practices impartial insured client accounts, for example at the Notary Public. These public offices offer an extra degree of security and independence, which can help give you peace of mind.

Costs and expenses

Overview

Once you agree on the pricing, your estate agent can provide you with a detailed financial overview that includes taxes and costs so you know what you'll be left with after the sale.

Costs and expenses

Brokerage commission: The seller pays brokerage commission. Industry standard is 5% plus (7% local VAT on brokerage commission), unless otherwise agreed. 

Capital gains tax: When home sellers make a profit from the sale, it may be necessary to pay capital gains tax to Spain. The tax rate (2023) for non-tax resident EU/EEA citizens is 19%, for non-tax resident non-EU/EEA residents it is 24% and for tax residents it is progressive, 19-23%. 

Value added tax: Plusvalía is a small municipal tax that is calculated based on the increase in the value of the land since the previous transfer. A large brokerage house may have the expertise to calculate your value increase tax. 

The sales package: Nine out of ten foreign home buyers choose our complete sales package to handle their practical, legal and financial tax obligations in their home sale. This optional service is provided by a specialized third party for afixed price of €1,500.

Debts

Joint costs: When selling a property that is part of a condominium, it is important to be up to date with your common costs. The estate agent will request a debt-free certificate from the condominium before the takeover, confirming that there are no encumbrances on the property. 

Subscriptions: Also make sure to keep up to date with the payment of property tax (IBI) and ongoing costs such as electricity and water. The estate agent will ask forreceipts for this before the sale. 

Mortgage: If the property is mortgaged, you must inform the estate agent and contact your bank in good time. A representative from the bank will give you instructions on the process of clearing the debt and will be present at the contract meeting at the notary's office.

Transferring

It is important that you do not cancel your electricity, water and insurance subscriptions without consulting your estate agent. This is because there is a change of ownership process from the seller's name to the buyer's name.

If you terminate the subscriptions, the suppliers may cut off the electricity and water supply and it may take a long time to restore the services for the buyer. It is therefore best to discuss this with your estate agent to ensure a smooth transfer of these subscriptions to the buyer.

Tenants

Short-term rentals

As most home buyers prefer to buy a home without an ongoing rental relationship, you may want to consult with a real estate agent on how to best coordinate the rental with the sale of the home.

If you are renting out your property to tourists on a short-term basis, you may want to consult a real estate agent to manage this activity. Foreign interested parties often have a packed program of both holiday activities and property viewings. If it becomes challenging to arrange good viewings or the property is not ready after the rental period, it can have a negative impact on the sale and the sales price.

Long-term rental

As most home buyers prefer to buy a home without an ongoing tenancy, you may want to consult with a real estate agent about how to best coordinate the rental with the sale of the home.

When renting out your property on a long-term basis, it is important to be aware that the tenant has certain rights and may not be happy about having to move out. It is therefore not uncommon for tenants to make viewings difficult to conduct. Clutter, odors and general atmosphere can affect interest in the property.

Changing property?

Use the same estate agent

When you're selling your home to buy another, timing and coordination are crucial for a seamless and stress-free home exchange experience. That's why it's particularly beneficial to use the same estate agent who can handle both assignments and ensure that the home sale takes place at the same time as the home purchase. This means you can avoid interim financing, avoid extra moving and save time and money on renting a temporary home.

Avoid additional cost

Using a personal buyer's agent ensures that you don't miss out on properties that are available with other brokerages, while providing you with professional support at no extra cost to ensure a positive experience when switching homes.

It's important to note that it's best to deal only with your estate agent and not directly with the seller or other agents advertising the property. According to local brokerage rules, brokers will only share commission if the potential buyer has not approached them directly.

After the sale

What should be included?

Fixed fixtures and equipment such as air conditioning are included in the sale unless otherwise agreed. Usually, electronic devices such as TVs, or personal belongings such as pictures, cutlery, bedding, etc. are not included.

Tasks

If you don't speak Spanish, it can be challenging to complete important tasks, including fulfilling your tax obligations. Government offices rarely speak other languages and you may be encouraged to bring an interpreter with you.

With our complete sales package, you get help with everything and, if desired, conduct the entire transaction from your home country. This ensures a stress-free and positive experience.

Payment deadline

In Spain, the non-resident property seller's 3% withholding tax must normally be paid within 30 days of the property transfer. We have established procedures to ensure that the amount is withheld from the sales settlement in the client account.

The notary then checks that the amount is correct and transfers it directly to the tax authorities within the set deadline. In this way, we can guarantee an accurate and timely payment of the advance tax.

Tax return

Foreign property owners in Gran Canaria are required to file an annual Spanish tax return, regardless of the tax return in their own country. It is important to consult an accountant to ensure correct fulfillment of all tax obligations: 

Rental income. Tax is calculated based on the estimated income from the property. When renting out, the rental income is reported and taxed, it is not necessarily that you will pay more tax in total. It just means that part of the tax will be paid in Spain, while the rest will be paid in your home country. 

Sales settlement. As part of the tax obligations on property sales, sellers must submit a tax module (Modelo 210) to the local tax authorities. This module is a form used to report and pay the relevant tax related to the property sale.

If you fail to submit a Spanish tax return, you should contact an accountant for advice and guidance. They can help you avoid any penalties and give you the right guidance.

Complaints

It is important to be aware that second-hand properties are generally sold "as is" in Gran Canaria. This means that any faults and defects will not necessarily be considered a legal defect. A defect must meet the following criteria: 

Serious. The defect must be so significant that the buyer would either not have bought the property, or would have paid a lower price, if they had been aware of it before the purchase. 

Hidden. The defect could not have been detected by a visual inspection of the property prior to purchase. 

Existing. It must be proven that the defect was present before the purchase contract was signed.

We encourage sellers to disclose any defects to the estate agent in advance, in order to get advice on what should be disclosed or repaired before the sale.

Our commitment

First client account

In 2012, our Norwegian general managers took a pioneering initiative in collaboration with Notarius Publicus to introduce the use of unsecured and insured client accounts in Gran Canaria.

This was a significant change in industry practice that had existed for generations. After some challenges and resistance, the first collaboration was completed in 2013, which formed the basis for the use of client accounts with different notaries, ensuring that no one has access to the buyer's money. Since then, more brokers have followed suit and adopted this solution, helping to create safer real estate transactions for home buyers.

Transparency

RE/MAX UTLAND introduced a policy of transparency around offers. We wanted an approach that is more in line with Norwegian practice, where transparency is important and offers can be quickly communicated and documented in a offer journal.

As the only brokerage house, RE/MAX UTLAND has taken the initiative to integrate an online system, allowing you to easily place offers and participate in the process online on all our properties.

Our guidelines

The RE/MAX chain in Spain is a pioneer in preventive measures for the real estate industry. RE/MAX UTLAND is subject to a strict code of conduct for our agents, which you can download here.

Do you have any questions? 

Our knowledgeable managers work closely with a team consisting of a notary, lawyer, accountant, settlement office and architect, who keep us updated on relevant information. Don't hesitate to contact us by email or call +47 14 66 75 for a free and non-binding property chat.
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