If there is one thing that bears repeating when buying a property in Spain it is that you should hire a lawyer, one that has nothing whatsoever to do with your state agent, developer or vendor and that comes personally recommended.
There have been a fair number of property disasters in Spain. Happily there have also been very many successes – and you need to be one of those. Scratch the surface of a successful property deal and I have little doubt that you will find a diligent, bilingual lawyer of integrity representing the interests of the buyer in there somewhere! The reasons for the problems are many so I am going to look at how a really good lawyer can help you avoid them.
Horror stories abound. Greedy developers sometimes don’t comply with the existing laws and regulations. Knowing that foreign buyers are less informed, unscrupulous developers and estate agents have no compunction in selling an off-plan property that may eventually be demolished because it does not conform to regulations. Some of these developments have even been given the go-ahead by the right government department…but by a crooked official employed there. Some buyers have bought property with charges, encumbrances and other debts attached to their property that they knew nothing about. Another possibility is that the property has never been officially registered. Or the buyer hands over a deposit to someone purporting to be owner who subsequently does a disappearing act.
All these matters should be carefully looked into by a competent lawyer who has an intimate knowledge of the law and of his area well before you put pen to paper. A lawyer will also help when dealing with the Notary Public, banks and the whole slew of hoops that you need to jump through to get the whole deal sorted out.
For instance, if you are applying for a mortgage in Spain, lawyers can sometimes refer buyers to more sympathetic deals. Non-resident applicants are routinely charged the highest rates by financial institutions as their perception is that this second home is not a priority when the owner is faced with financial difficulties. Do check carefully however; lawyers may have family members working in banks - sorry to sound like a suspicious so-and-so but in my job I have heard it all!
The beauty of the legal system in Spain is that registered lawyers are covered against negligence by professional indemnity insurance. This means that, if they slip up and something goes wrong during the transaction, the professional indemnity insurance will cover any liability arising from this negligence.
All conveyancing lawyers hold a client’s account with preferential conditions at a Spanish bank. This means that when transferring monies from abroad you can avoid the extortionate charges imposed on non-resident accounts by other institutions, which can be anything up to 0.5% of the sum transferred. Also most Spanish lawyers provide an escrow service as part of the conveyancing service and do not charge separately for it. An escrow account allows parties to deposit funds in an impartial party held account – there are other companies that can offer this service but they routinely charge 0.8% of the amount.
Lawyers will also assist you in the processing of NIE numbers, opening bank accounts, changing utility contracts and arranging standing payment orders, setting up companies, drawing up wills and sorting out rental options. They will not only look after the filing of tax forms, collection and registration of the deeds, but can also help with after-sales situations which require a lawyers letter or phone call, such as arranging the "snagging", talking to the community of owners association and so forth.
Plus if you sign a power of attorney at the Notary Public in Spain, or even in your home country, most of the purchasing process can be done by the appointed lawyer in your absence.
Most conveyancing lawyers in Spain are fluent in English – they have been doing business with the Brits for very many years. If you do not retain your own lawyer you should remember that an estate agent or developer wants you to buy the property – in fact, let’s face it they don’t get paid unless you do. To rely on their impartiality is short-sighted, to say the very least!
I sound a bit like a lawyer punting for business: I assure you I am not but I cannot stress how important it is that you look at having your own lawyer to look after your interests. Personally, I would list everything that you require them to do for you – that way, you have a record of what you asked should be checked and, if anything goes wrong, you can apply for reimbursement from their insurance company.
Kim Brown
http://www.SpainBuyingGuide.com
Showing posts with label emigrating. Show all posts
Showing posts with label emigrating. Show all posts
Wednesday, 13 October 2010
Thursday, 26 August 2010
How to make your overseas buying dreams come true this year
I am unabashedly a list girl, so yes: I will be making a list of how to make your property purchasing dreams come true, but there is one thing that is by far and away the most important step. You must want it enough.
I know that sounds simplistic but it is nonetheless THE most important aspect of your dream. The reality is that there will be a fair amount of work ahead and you may encounter a few problems along the way so you need have the determination to push on with your quest, but remember that countless other people have done it and you can too. Here comes that list:
Cost: It is essential that you have a clear idea of exactly how much you wish to spend from the outset – and then that you stick to your budget. If you need a mortgage, try to get an idea as to what sort of mortgage you can get up front, and certainly know what you can afford to repay. You also need to have a good knowledge of all costs that you will incur on purchase (both the cost of the property and the purchase charges), how much you will need to spend per annum, transport costs etc.
A Currency company: Aligned to cost is that you open an account at a first class currency company, one certainly regulated by the Financial Services Authority (FSA) under the new Payment Services Regulations 2009. When I moved countries I was unaware of the enormous savings a currency company can secure. Go to: http://www.smartcurrencyexchange.com/ for an outline as to how they can save you heaps of money. And remember: if you decide on a price to pay for your new property, and are happy with that price, it may be best to lock your currency in at that day’s rate. Certainly people who did that in early 2009 laughed all the way to the …well, currency company, by the end of the year!
Location: You will need to decide exactly where you wish to buy: this decision will be dependent on what you are using the property for. If you think you may want to rent it out at any stage, then the location is of primary importance. For instance you will need to think very carefully about access, both by air from the UK but also the distance from the airport once there
List your requirements: Make a thorough list of your requirements, specifying what is absolutely essential to you: 3 bedrooms, a bathroom rather than a shower (my pet requirement!) etc – and don’t be swayed, no matter how pretty the house is
Views: Ensure that your lovely view cannot be obscured: One of my saddest memories is of a couple who bought a flat abroad with a heavenly sea view. When they next visited the property, a huge block of flats totally obscured their view – they immediately put their property on the market, with their dreams in tatters
Reputable Estate Agents: Decent agents will happily listen to your questions and answer them as best they can (plus we can help you find those agents!). You may be able to make offers of up to 20% less than the price they are asking if the area is one that is a buyer’s market - the agents we recommend will guide you as to which these are: make use of them!
Lawyer: Always use your own independent lawyer. If you are recommended someone once on the spot, always ask for personal references and check them
Sign ONLY when contract checked and correct: This may seem an obvious one but in the excitement of buying your property you may overlook the importance of getting your contract correct. If you don’t fully understand everything, get the contract translated, and changed if needs be
And finally – take your time! Do not allow yourself to be rushed into anything – it’s a huge decision and one that you will have to live with, so make sure it is the right one
If you need any help at all just phone the OGC Resource Team on 0207 898 0549 and they will gladly assist you where they can - there is currently no cost nor is there any obligation to use our recommendations at all.
I know that sounds simplistic but it is nonetheless THE most important aspect of your dream. The reality is that there will be a fair amount of work ahead and you may encounter a few problems along the way so you need have the determination to push on with your quest, but remember that countless other people have done it and you can too. Here comes that list:
Cost: It is essential that you have a clear idea of exactly how much you wish to spend from the outset – and then that you stick to your budget. If you need a mortgage, try to get an idea as to what sort of mortgage you can get up front, and certainly know what you can afford to repay. You also need to have a good knowledge of all costs that you will incur on purchase (both the cost of the property and the purchase charges), how much you will need to spend per annum, transport costs etc.
A Currency company: Aligned to cost is that you open an account at a first class currency company, one certainly regulated by the Financial Services Authority (FSA) under the new Payment Services Regulations 2009. When I moved countries I was unaware of the enormous savings a currency company can secure. Go to: http://www.smartcurrencyexchange.com/ for an outline as to how they can save you heaps of money. And remember: if you decide on a price to pay for your new property, and are happy with that price, it may be best to lock your currency in at that day’s rate. Certainly people who did that in early 2009 laughed all the way to the …well, currency company, by the end of the year!
Location: You will need to decide exactly where you wish to buy: this decision will be dependent on what you are using the property for. If you think you may want to rent it out at any stage, then the location is of primary importance. For instance you will need to think very carefully about access, both by air from the UK but also the distance from the airport once there
List your requirements: Make a thorough list of your requirements, specifying what is absolutely essential to you: 3 bedrooms, a bathroom rather than a shower (my pet requirement!) etc – and don’t be swayed, no matter how pretty the house is
Views: Ensure that your lovely view cannot be obscured: One of my saddest memories is of a couple who bought a flat abroad with a heavenly sea view. When they next visited the property, a huge block of flats totally obscured their view – they immediately put their property on the market, with their dreams in tatters
Reputable Estate Agents: Decent agents will happily listen to your questions and answer them as best they can (plus we can help you find those agents!). You may be able to make offers of up to 20% less than the price they are asking if the area is one that is a buyer’s market - the agents we recommend will guide you as to which these are: make use of them!
Lawyer: Always use your own independent lawyer. If you are recommended someone once on the spot, always ask for personal references and check them
Sign ONLY when contract checked and correct: This may seem an obvious one but in the excitement of buying your property you may overlook the importance of getting your contract correct. If you don’t fully understand everything, get the contract translated, and changed if needs be
And finally – take your time! Do not allow yourself to be rushed into anything – it’s a huge decision and one that you will have to live with, so make sure it is the right one
If you need any help at all just phone the OGC Resource Team on 0207 898 0549 and they will gladly assist you where they can - there is currently no cost nor is there any obligation to use our recommendations at all.
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