pinktutu

Hi folks,
This is my first post so please be gentle.
I have seen a house in the Costa Del Sol I wish to purchase.
The Agent advises me that it can be taken off the market once I pay a reservation fee.
Thats fine, I have the cash but I feel a little uneasy just handing monies over so I get in touch with a lawyer in Malaga (Maria Sanchez).
She runs through her fees and what to expect.
She confirms I need to send this amount to secure the property plus her fee's in advance, the money would be sent to a client account held with herself.
I have asked her as to whether I should see a purchase contract before hand and she says its not always necessary.
Up to now all I have are emails and nothing in writing from the lawyer to the estate agents, is this the norm ?

Thanks in advance

billgates

Don't do It!

Seriously.
How long has the house been on the market? Is it suddenly going to be snapped up by one of the hordes of invisible buyers?

The agent is obviously going to advise you to pay a reservation fee - it secures their cut of the proceeds.
The lawyer is obviously going to insist on her fees being paid up front - just in case you come to your senses and decide to rent instead.

As soon as you pay that fee they've got you.

Insist on seeing the paperwork first. Spain is a nightmare for buyers, many people are only just finding out that their house is illegal and therefore effectively worthless.
I'm sure the agent and the lawyer will tell you that it's not really necessary to get a survey done first.

Do your homework first.
Make sure there are no relations between agent and lawyer.
A fool and his money....
etc.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

missile

A non refundable deposit is usually requested, but a lawyer who wants paid in advance NO WAY .............. = go elsewhere !!!!!

Moses2013

Wouldn't do that. You could just do an agreement with solicitor/buyer to pay a refundable deposit. Should the survey be Ok and everything's legal, this amount will be taken of the purchase price. If not, you'll receive your deposit back and they'll have to pay survey + solicitor fees up to that point.

dfjordan

I agree with the comments. It sounds to me like you are going into this completely blind and could end up like many many others, with major regrets. No decent lawyer is going to insist on being paid his fee up front for a house purchase. At very best she could expect say 50% in advance. How do you know she is going to do her job? Has she been recommended by another expat? With all lawyers and other professionals in the area of property you need to be very careful.

Porth

Ok I take a slightly differing viewpoint. Would you have you is it ever likely you would pay up front the Solicitors fees in the UK. The answer is absolutely no and I say that having let us say some 44 years relationship with UK law.

For a contentious divorce or say contract issue Solicitors in the UK do indeed ask to be put in funds but not for house purchase.

You are dealing in Spain so that should put any reasonable person on notice.

If you look at the Solvia site you will see the huge amounts of houses available for sale. Let your head sort this out not your heart.

If they want the deal then the deal is on your terms not theirs. Documents all of them to you and in writing + over the internet and either ask for a translation (authorised) or get it translated yourself.

There are not going to be hoards of people knocking at their door for this particular property.

Caveat emptor.

Seriously if not on your terms walk away. You worked hard for your cash you could lose quite a lot unless you proceed very carefully and regret at leisure.

There are those on this site who advocate and based upon substantial experience that before one buys that one rents! Sunshine and tapas do some funny things to one's head.

Once in France (yes France) I jumped feet first into a deal (or was going to do so being seduced by the property) and could not understand the urgency of the owner and Notaire to get my signature on the document.

Stood back for a while and identified future Tres haute tension pylons going immediately past the house.

My signature save for seven days cooling off would have committed us!

pinktutu

Thanks folks,

The house is an old village house , very near the coast and is exactly what we are looking for. We have stayed in the area many times, the house will be used primarily for holidays and in maybe 10yrs lived in.
I have studied the local market for 2 yrs now and know that this house has been priced to sell, so I'm not going into this blind but on the other hand I haven't had any experience dealing with the Spanish conveyancing system.
The lawyer has said that my funds will stay in the client account until my survey has been done.
I have since been in touch with her and insisted that I have a contract in place before any cash is handed over.
Seemingly August is not the best month to be buying a property in Spain what with fiesta's holidays ect.
I would appreciate any advice from someone who has had recent personal experience of a house purchase in Spain.

Moses2013

It's all pretty straightforward, but you need a trusted lawyer (see below).

Reserving a property in Spain

Sign a reservation contract and pay a reservation fee to remove the Spanish property from active marketing. This stage is equivalent in UK to sold subject to contract.

Risks associated with signing a reservation contract

Most estate agents will want their own reservation contract signed. We would recommend before signing a reservation document and passing over funds that you take advice from a lawyer in Spain. A good Spanish lawyer will provide these early stages of advice for free. Appointing a legal adviser to check the reservation details is advisable in order to help you protect your reservation fee in the event of you requiring to pull out of the purchase. Your Lawyer in Spain will help provide sufficient time to undertake initial legal searches, provide a cooling off period, and where required provide time for financial arrangements like a mortgage in Spain to be put in place

susique

Spanish Lawyers do not do conveyancing, you are only paying for them to draw up the legal contracts.....so many of us did not understand this. Its not like in the UK.

You need to go to the town hall and check the deeds etc., yourself or pay a Gestor to do it for you. As previously advised get a translator and keep translator, vendor/estate agent and lawyers away from each other so there are no backhanders being passed.

A deposit is usually non refundable if you pull out of the deal or have a legal agreement otherwise.

NEWCOMO

1. Use a good lawyer. (spanish) with English links. They check all the documents etc.
2. Agents (be very careful)... make sure you speak directly to the seller. Some agents in the past I am aware, had one price to the seller and to the buyer and in some cases, the buyer got 200.000 and the seller 170.000 but 30.000 was paid to the agent.
Speak to the seller about the FINAL PRICE.
3. Use a Spanish Bank if possible like Santander. They have been doing this for years with links to Spanish Mortgages and Lawyers
4. The lawyer will also apply for NIF and other services (elec/gas/water) etc...
5. DO NOT HAND ANYTHING OVER AND MAKE SURE THAT YOU ARE IN CONTROL OF THE PURCHASE. USE THE SPANISH LAWYER YOU INSTRUCT.

susique

And refuse to pay any 'black' money (undeclared cash) The Tax authorities will catch up with you and make you pay - not the vendor who getsthe money. I know lots of people who have fallen foul of this. Not sure if it still happens but you must refuse if they ask.

dorishaslop

from personal experience.... if someone is trying to rush you..... run awayy!!!

Nick6039

Hi I am brand new to this website and have read several threads with reference to buying in Spain. Thanks to all members for their advice they have posted for the last couple of months. I retire in March 2015 and we are looking to buy a holiday home. The advice seems to be to rent before buying but my concern is that the prices have bottomed. What is the view from others. I have been price surfing for a couple of months now and see the prices still dropping but expect that in March we may have missed the most lucrative buy time. Its not an investment we want though its a Winter sun bolt hole. Are the prices still dropping because the unwanted property seems to be the most prevalent in the adverts or is it a genuine trend? We are coming out to Guardamar del Segura in November to area assess not look at specific property. Looking from Turre in the South up to Alicante. Any advice would be welcomed

missile

I know that area well. I doubt we will see any increase between now and March 2015. If and when there is any increase, it will be very slow and gradual.