Why have legal help to buy a new-build property?

single.php

Posted and filed under Property in Spain, Property Purchase/Sale Service.

Many clients do not realise that if they buy a new property in Spain, or an off-plan, they need independent legal help.

Do not forget a developer is keen to sell. They make good money on new properties as do the agents. If they offer to take care of all the legalities, they are not impartial. Yes, they are legally required to supply you with information such as details of the developer, the property etc. but are you familiar with the Spanish law, the paperwork and any certificates required, and able to deal with any problems that can arise? Not many people are…

Don’t forget normally you reserve a property while it is being built and so sign a contract and pay a deposit often before anything is even there.  You need someone to ensure the builder provides you with a bank guarantee referring to the payment of the deposit you have transferred to their account. Obviously there are risks. Over the years, we have dealt with so many cases after the intended purchase where buyers have lost their deposits.

 

Independent legal help to buy a new-build property?

 

Because there were issues that were very wrong that the buyers did not know how to check. Such as whether the constructor even had the appropriate building permissions. Driving around the Costa Blanca, you sometimes see the skeletons of buildings, just left, obviously for years. This is because the builder was not allowed to build there (but had already started) and so it was just left, or worse, he went bankrupt.

When a reservation contract is signed usually this is a non-returnable deposit (about 10% of the property price or more). So it is very important that everything is checked by a professional before you put your deposit down on a new-build. Why take risks with so much money at stake?

Additionally, once you sign a contract you are then saying you will make all the future payments. You need to be sure of all the background as otherwise if you pull out, you could be sued for terminating the contract. Professionals such as the Spanish Solutions team will make sure that you are protected, and especially that the appropriate guarantees are in place, and that the sales contract includes a reference to the guarantee.

Once the property is built, you sign a deed of purchase at a Notary and become the property owner. Any debts of the constructor linked to that property if not cleared become yours (for example, the builder’s mortgage). That is how Spanish law differs to other countries.

And it is not a Notary’s job to check all the information that a professional dealing with the purchase would, so you cannot rely on them. It is important that the purchase deed is properly registered and that you receive this deed showing you are the owner of the property and that this final step has been completed. Remember, this deed of purchase signed at the Notary is the evidence that you own a property.

However also, we have known purchases go through the Notary but the registration never took place. If you are relying on the constructor or agents’ office, yes all could be well, but bear in mind, they have already been fully paid. And are they acting really for you or in their own interests?

Back home you would not cut corners with the legalities of buying a property, and not use a conveyancing firm, so there is even more reason not to do it in a foreign country.

Please use a skilled professional to handle the purchase who will check everything, the permissions, the guarantees and who understands legal jargon in Spanish.   Otherwise there is the risk of losing the funds you have paid, or even demolition of the property. For what? Only a very minor saving.

We can also help you to gain the maximum benefit from your new home by helping you obtain a tourist licence, so that you can start renting legally your home for holiday lets. Additionally you will be informed of all your legal obligations in Spain once you own a property (council tax, non-resident tax etc.) and looked after and supported for years to come, making sure you can really enjoy your new home.

If you would like to discuss with us the purchase of a new-build in Spain, please contact us. We will be happy to be of assistance. We can also help you with buying or selling resale property.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

*

Looking for a solution?

Feel free to get in touch with any enquiries and one of our friendly members of staff will get back to you as soon as possible.

Form loading.