Take the Right Steps and Buying in Spain is Easy as UK
20/09/2007
More and more people are buying property in Spain; however there is growing unease amongst purchasers after recent property scandals involving housing permits and the legality of some permits for building on land not suitable, or without permission, leading to people losing their dream homes.
However there are many excellent, honest and responsible developers in Spain and with the right approach a purchaser can be confident of buying the property they always dreamed of.
Susana de las Cuevas-Nagle, from law firm Irwin Mitchell, suggests that by following these simple guidelines there should be no more reason to be concerned about buying in Spain as there would if they were buying in the UK.
Obtaining adequate legal advice is essential. Before signing any documents or paying any money in connection with your purchase you should identify an independent English speaking Spanish lawyer (abogado).
Remember that those Abogados who are based in England and Wales must abide by the Law Society’s Practise rules, which guarantee a good standard of service and adequate professional indemnity insurance.
Obtain confirmation that the lawyer will accept your instructions in writing and report to you in writing. Agree the lawyer’s fees on the basis of your instructions and ask for confirmation in writing.
Set out your instructions clearly including any points which you may have as a result of your own observations.
The following should be taken into account:
Town Hall enquiries. If you are buying an off plan property it is necessary to verify that the land is suitable for development and that the developer has a building license. If the construction works have been completed the developer should produce the necessary certificates showing that the property has been finalised in accordance with the building license and is fit for occupation.
If you are purchasing land, it is essential to verify its planning classification and the legality of any existing constructions on it. In general terms, if you are buying a rustic plot (farming land) you should bear in mind that the land may be affected by a planning scheme before, during or after the purchase.
Guarantees for stage payments and building insurance. If you are buying an off-plan property it is important to note that the developer is legally required to provide appropriate insurance cover or bank guarantees for each stage payment received on account of the purchase price. The developer should also provide appropriate building insurance cover on completion.
Land Registry searches. These searches will confirm the vendor’s title to the property and the existence of any charges and encumbrances.
They will also provide a description of the property, its surface area and main characteristics. In resale properties the description appearing at the land registry should coincide with the one in the contract. If a house has been extended the new description of the property (with the new rooms and extended surface) should be the one appearing a at the land registry.
Searches at the local Mapping office or “Catastro” If you are purchasing land, bear in mind that the Spanish Land Registry will not provide a map of the property setting out its boundaries. For these purposes it will be necessary to make a further search at the local “Catastro” (Land Census or mapping office).
Taxes and disbursements. Your lawyer should inform you of the taxes and disbursements that will arise from the actual purchase and also of those which will be payable yearly after the purchase.
Financing: You should always sort out your finances before signing your contract. Do not forget taxes and disbursements when preparing your budget. Remember that the contract will be binding even if eventually you do not manage to obtain proper financing and you risk losing part or all the amounts paid on account to the vendor or developer. If you are buying with a mortgage, make sure that your loan is pre-approved before formally committing to buy.
Spanish Wills – Although English Wills are valid in Spain it is strongly advisable to have a Spanish Will applicable only the Spanish assets (property, bank accounts, car, etc.) Having a Spanish Will makes the winding up of the Spanish Estate faster, easier and less costly. It will avoid any translation fees of English Probate documents and some Foreign Offices legalisation fees. The Spanish Will can be executed in England but in order to comply with Spanish Law its execution must be attested by a Notary Public. The Will must also be registered at the Spanish Probate Registry.
Conclusion: Buying is Spain should be as safe as buying in the UK provided that you take care and follow the simple steps outlined above.
There are many well established and responsible developers in Spain from whom it is safe to purchase in confidence.
For any enquiries please contact:
Susana de las Cuevas-Nagle
Spanish Abogado; English Solicitor; Notary Public
Francisco Pazo Couto
Spanish Abogado; English Solicitor