The Guardia Civil are investigating a man in Tenerife over an alleged property scam involving more than €16,000 paid as a deposit on a house. According to information released by the Guardia Civil, the prospective buyers initially contacted an estate agency after seeing a property advertised through social media.

After viewing the house in La Guancha, in the north of the island, and deciding to proceed with the purchase, they signed what is known in Spain as a contrato de arras, or deposit agreement, and subsequently transferred more than €16,000 to reserve the property.

The purchase was supposed to be completed within a period of approximately 90 days. However, the sale was allegedly never finalised.

The prospective buyers then reportedly encountered problems recovering the money they had paid.

Guardia Civil investigation

The case was reported to the Guardia Civil, which began examining the documentation and communications relating to the proposed sale.

Investigators reviewed the deposit agreement, bank transfer and other evidence connected with the transaction.

The investigation reportedly established that the money had been transferred into an account belonging to the manager of the estate agency.

A man from Güímar is now being investigated as the alleged perpetrator of a fraud involving more than €16,000.

Being formally investigated does not mean that the person has been convicted of an offence, and the allegations will ultimately be subject to the judicial process.

Important issue for foreign property buyers

The case is particularly relevant to British and other foreign residents or visitors considering purchasing property in the Canary Islands.

A deposit agreement is commonly used during property transactions in Spain, but buyers need to understand exactly what they are signing before transferring substantial sums of money.

Different contractual arrangements can have different consequences if either party subsequently withdraws from the transaction.

Prospective purchasers should therefore ensure that the identity of the property owner, legal status of the property, terms of the deposit and destination of any payment have all been properly checked.

Independent legal advice can be particularly valuable for overseas buyers who are unfamiliar with the Spanish property-purchasing process.

Buyers should also be cautious when property opportunities originate through social media and should independently verify the identity and credentials of anyone handling a transaction.

The Guardia Civil routinely advises members of the public to be wary of offers that create pressure to transfer substantial amounts quickly and to retain copies of contracts, communications and proof of payment.

The investigation remains ongoing, and no court ruling has yet established criminal liability in the case.