by AH Solicitors
Buying property can be quite intriguing especially for first-time buyers. As a lawyer, we have spent many years meeting and advising local and foreign property buyers on what they should and shouldn’t do when buying property. We have also helped buyers with mistakes they have made during the purchase process and I’d hate to see those mistakes repeated again. Here are some common mistakes when buying a Spanish property.
Buying property is a sensitive matter and you would want to have someone in your best interest during this period. In Spain especially purchasing property needs a lot of patience and inspection of every detail in the process. Most buyers trust their agents and hardly seek the legal opinion from a qualified lawyer on the legal measures in buying a Spanish property. The real estate agent might also provide an in-house lawyer for you who does not have your best interest at heart.
I would recommend that you find a personal lawyer who can draft and review contracts for you. Foreigners can find a good English speaking Spanish lawyer from various law firms in the country by either recommendation or independent sources. If you have the means to bring along your lawyer then that would work great on your side.
The reservation document is drawn up by the house seller or the agent once an offer is made by the buyer. The deposit is made by the buyer and in Spain, the amount depends on the cost of the house. The deposit is used to take the property off the market once the final offer is made but in the event that the property has issues such as a prior mortgage application arise, purchase of the property might take longer or might not happen at all yet deposit is non-refundable.
NOT SETTING OBJECTIVES
Ask yourself these questions before you begin the process of buying a Spanish property. Are you looking for a permanent residence, an investment that you can rent out, sell in future or a holiday home? Spain is a great tourist destination so if you are looking to purchase property for renting then you have to consider the expenses that come with it and what areas are most popular for tourists. As a buyer, you need to research the regional laws and tourist rental laws that dominate the property industry. This is yet another reason why you should involve a lawyer to guide you with what you want.
POOR FINANCIAL PLANNING
As a lawyer, I would never recommend for a buyer to take up a loan from either the bank or from family and friends. Banks in Spain, advise clients, to keep debt at a maximum of at least 30% of their net income. This is good to ensure that people don’t borrow too much and end up being in debt.
If you are planning on taking a mortgage in Spain, I would recommend that you start planning early. Set your financials right and research the most affordable mortgage plans to know how much you will need to spend as well as the difference between mortgages in Spain and your country if you are a foreigner.
People sometimes tend to forget about what comes after purchasing a property. Take for example a house. A buyer pays up all the necessary fees, to both the real estate agent and the lawyer. In the event that he has used up all his money on the house, he has no way of doing the renovations such as reconstructing that bathroom or catering for contingencies such as health.
This is another major mistake that I have seen buyers do in Spain. As a buyer you are in control, do not be fail to make a counteroffer so that you can have a little extra cash to do the renovations you need.
Most sellers in Spain include approximately 10-15% of the price to cover taxes, paperwork and legal fees but they will never really tell. Buyers have the right to know the breakdown of the money they pay so take it upon yourself to ask what the price is inclusive of. It would be best to have the costs outlined on paper and be sure to keep a copy.
For further advice about buying a property in Spain or any Spanish conveyancing needs, contact us. Or for updates on the Spanish property market, see here.
Hola! I'm Pilar Alonso, your trusted Spanish Property Solicitor. I was born in Spain, but now spend half my time in England, where I have a home and an office in Bolton, Lancashire. With a wealth of experience exceeding two decades, I've honed my skills to perfection in the intricacies of Spanish property law.
For the past decade, I've been the go-to expert for UK citizens seeking redemption from failed property investments post the 2008 financial crash. Now, it's time to refocus on what truly fuels my passion—making your dream of owning a piece of Spanish paradise a reality.
Whether you're navigating property transactions, unravelling tax complexities, or securing your Spanish inheritance, I'm here as your dedicated ally. Let's turn your property aspirations into a success story!
If you have found your dream property in Spain and need quality legal advice, we are here to help. Discuss your dreams with a specialist Spanish Conveyancing Solicitor today.
Follow our simple guide to buying a property in Spain and make your dreams come true.
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