Get a qualified, independent professional help when buying abroad

Investors thinking of purchasing property in Spain are being urged to seek advice from experts before committing to a transaction…

Spain continues to remain a popular destination for British people who are looking to purchase property overseas with around 70,000 British people buying properties in each of the last three years. 

According to the latest Spanish census, 270,000 British nationals registered with Spanish councils in 2006, an increase of 28.6% compared to 2005. 

According to the Spanish Ministry of Tourism, 1 million foreigners are expected to set up home on the Spanish Coast within the next six years.  This figure is expected to treble by 2025.

But tales of people making mistakes when buying abroad still surface with frightening regularity. The problems stem from a relaxed holiday mood and are enhanced by our British trust that ‘officials’ will guard our interests.  It’s all too easy to take someone’s word that things are properly in hand, particularly if you don’t understand exactly what is going on.  You may well promise yourself to ‘check up later’ but all too soon, what might be that vital piece of knowledge, gets buried under a hail of other issues. Furthermore, the person you thought was an ‘official’ may not be working for your interests at all.

So it’s not surprising then to find a report by Banco Halifax Hispania, that suggests consumers entering the buying process in Spain should employ the services of qualified surveyors and solicitors, preferably independent professionals who are not connected to the estate agent. We may have heard much of this before but a little refresher won’t do us any harm at all.

Buying a property in Spain is a dream come true for many Britons, but it is important that you work with specialists that can provide you with the right guidance to follow the house buying process correctly, advises Banco Halifax Hispania.

When buying property in Spain, the importance of using qualified solicitors and surveyors who are not only fluent in English, but who also have local knowledge and experience of acting for British customers cannot be over emphasised.

Although employing a solicitor and surveyor will increase the purchase costs, as legal and survey fees have to be paid, these amounts are relatively small compared to the expense of trying to sort out unexpected difficulties in the future.  However, it is good practice to use an independent solicitor rather than one that has been appointed by the agent that you are buying property from, to protect your best interests.

Banco Halifax Hispania has an approved panel of Spanish solicitors (Abogado) and surveyors.   As in the UK, a Spanish solicitor will ensure that all aspects of the purchase, including planning permission, obtaining a residency certificate and other legal requirements are satisfactory and will investigate the property as thoroughly as possible to protect your interests.  In this respect, they are able to assist you in a number of key areas throughout the house buying process:

Working with a Spanish solicitor will ensure that all searches and legal investigations will be carried out prior to the property being purchased.  These will highlight any possible difficulties, such as the property not being correctly registered, before they arise.  It is important to ensure that this information is verified prior to the purchase to ensure that the transaction is legally sound.

In Spain, any outstanding debts stay with the property when it is sold. Your solicitor will ensure that these debts are cleared or accounted for before the sale is completed.  Otherwise, the debt becomes your responsibility on completion of the sale.

It is also important to check the Land Register or Cédula Urbanística for the land status as Spanish law imposes strict regulations on types of property and where they can be situated. The property should be registered as a 'vivienda' which literally translates as a 'habitable dwelling'.

If you are purchasing land for self-build, it is important to check whether planning permission is obtainable as restrictions do apply.  For example, there are issues relating to how close properties can be built to the coastline.  There are some properties on the coastline of Spain that have been built without prior planning permission.  Only once the work has been completed have builders applied for planning permission, without any guarantee that it would be granted.  The consequences can be dire.

It is important to remember that a notary (notario) is not the same as a solicitor (abogado.)  An abogado will act in your interest and advise you on the best way to proceed and check that the agreement is as comprehensive as possible.  This is particularly important when dealing with off-plan properties, where it is essential to establish and confirm the space and dimensions of the property.

In contrast, a notario is an official who acts as a witness for the signing of official documents such as the sale completion and whilst they will be a qualified lawyer, they will remain impartial and not conduct any investigation into the finer details of the sale.

Ian Smith, head of European operations at Halifax said: "Our approved panel of independent solicitors and surveyors are all experts who can provide sound guidance and reliable advice and we recommend that anyone intending to purchase property in Spain arrange a consultation as early as possible.”

“Few people would consider buying a property in the UK without instructing a solicitor or surveyor and the same care and consideration should be taken when buying abroad."

Banco Halifax Hispania offers a range of current account and mortgages for Britons looking to buy a second holiday home in Spain.   It also provides an English speaking helpline within the UK for customers who wish to sort out their financial options prior to arriving in Spain.  The helpline answers queries about what's involved in buying in Spain and can arrange for the completion of mortgage and bank account application papers.