door Gabriella Trussler | nov 5, 2016 | Property
The negative effects of the financial crisis on Spanish society are well known, with the high number of bank
repossessions being the most widely publicised side-effect. Whilst this has created a social problem, it has also given way to a huge opportunity for property buyers and investors in Spain thanks to the incredibly low prices these repossessed properties are being offered at, with an estimated increase of 15% in property sales for this year.
Spanish banks have become inundated with repossessed properties in the last few years and their urgency to offload them so as not to incur in further losses puts the buyers of these types of properties in an extremely powerful negotiating position.
Furthermore, accepting one of the bank’s products (e.g. deposit account, home insurance, life insurance, credit card, etc.), some of which the buyer is already considering anyway, can bring down the purchase price even further.
Although repossessed properties in Spain are particularly appealing to cash
buyers because of their low prices, they
can also be very interesting for those considering a financed purchase, as some banks are currently offering 100% mortgages for these properties.
This change to the Spanish real estate market makes it the best time to buy in Spain in recent years. However, locating these properties and negotiating with the banks can prove complex and challenging, and specific legal checks are required. It is therefore important that potential buyers seek proper legal advice before engaging in the purchase of repossessed, or any other kind of properties in Spain.
Gabriella Mary Trussler Rowland
Lawyer
4408 Ilustre Colegio de Abogados de Almería
door Gabriella Trussler | nov 5, 2016 | Property
Whether you are selling or buying property in Spain certain requirements must be met and procedures followed to ensure the purchase complies with Spanish Law and regulations.
Legal representation and assistance is particularly necessary in Spain when purchasing or selling property. The Conveyancing process in Spain involves different degrees of participation by various parties: the seller, their legal representative, the real estate agent, the accountant, a notary public, the registrar, utilities companies, the town hall, banks, and in some cases the local courts, regional authorities, etc.
The lawyer will ensure that all parties are appropriately co-ordinated and followed-up with and will perform an investigation to ensure that the property is purchased without any previous charge or liability that could incur additional costs or reduce the property’s value.
To make sure that both parties are completely aware of the conditions of the property and the sale to allow for a “safe sale”, certain information has to be gathered by buyer and seller, such as:
- Searches on the legal status of the property and the developer/seller, so as to discover any issues that may influence the buyer’s decision or conditions of the purchase.
- Acquire an Energy Performance certificate for constructions, mandatory before even advertising the sale of the property and the seller’s responsibility.
- Liaise and agree with the seller and/or lawyers in respect of terms and conditions of the purchase, ensuring compliance with Spanish Law.
- Make preparations at the Notary Public for completion of the purchase or any further preparations required relating to the purchase (power of attorney, division or grouping of property, etc.).
- Ensure title deeds are properly registered in the appropriate local Land Registry.
- Make sure the property is free from all charges and encumbrances, as well as free from occupants and tenants.
- Payment of the relevant taxes associated with the purchase.
- Locate, negotiate and obtain a mortgage loan to finance the purchase of the property.
- Obtain a NIE (Número de Identificación de Extranjeros), necessary for all foreigners buying or selling in Spain.
The steps involved in conveyancing can be confusing when you are selling property in another country. With our
knowledge of property selling practices both in Spain and in your home country, we can ensure that you understand the process.
If the proper investigations are not made and the proper process is not followed, it could result in high extra costs, future legal proceedings, steep tax fines, etc. It is always preferable to be properly advised.
Gabriella Mary Trussler Rowland
Lawyer
4408 Ilustre Colegio de Abogados de Almería
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