Help-buying a house Spain
#16
Re: Help-buying a house Spain
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
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
}
#18
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,148
Re: Help-buying a house Spain
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
#19
BE Enthusiast
Joined: May 2013
Posts: 613
Re: Help-buying a house Spain
As previously mentioned, lawyers don't do conveyancing in Spain. We've bought twice in Spain and haven't used one at all. You can get a nota simple from the local council and that should state what debts are outstanding against the property and any other legal issues. We downloaded a contrato de arras from the internet, modified it to our (and the seller's) liking, and both us and the seller signed it. Typically the contrato de arras involves a requirement from the buyer to place money (a "deposit") in a special bank account and the agreement is that if the buyer pulls out the money goes to the seller, and if the seller pulls out they have to pay that amount to the buyer along with the deposit. And that's pretty much what a lawyer usually does in these cases. But there is no need for one because you still have to go to the notary where the "completion" takes place, and sign off the documents yourself. So the lawyer has no legal responsibility and only carries out bureaucratic work. I've been told you can often get gestoras to do it for much less money. If you take a mortgage out the bank tends to take most interest in all the legalities being in order, as they obviously have a stake in the property.
I don't know the market in that area, but if it helps I read somewhere recently that on average most offers come in at 80% of asking price. Also in some areas the market is so cheap that even if it drops by another 20% or so, it's not a big deal. Also you'll still end up paying transaction tax based around the valor catastral rather than the actual transaction value, so be prepared for it being more than you expect.
I don't know the market in that area, but if it helps I read somewhere recently that on average most offers come in at 80% of asking price. Also in some areas the market is so cheap that even if it drops by another 20% or so, it's not a big deal. Also you'll still end up paying transaction tax based around the valor catastral rather than the actual transaction value, so be prepared for it being more than you expect.
#20
Re: Help-buying a house Spain
In actual fact there are some very good agents who put themselves out to find the clients the right property so it is a little unfair to cast them all the same. The problem here is that there is no regulation concerning agents and selling property unlike the UK where they are regulated by Acts of Parliament and can be prosecuted for misdemeanours.
#21
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,148
Re: Help-buying a house Spain
As previously mentioned, lawyers don't do conveyancing in Spain. We've bought twice in Spain and haven't used one at all. You can get a nota simple from the local council and that should state what debts are outstanding against the property and any other legal issues. We downloaded a contrato de arras from the internet, modified it to our (and the seller's) liking, and both us and the seller signed it. Typically the contrato de arras involves a requirement from the buyer to place money (a "deposit") in a special bank account and the agreement is that if the buyer pulls out the money goes to the seller, and if the seller pulls out they have to pay that amount to the buyer along with the deposit. And that's pretty much what a lawyer usually does in these cases. But there is no need for one because you still have to go to the notary where the "completion" takes place, and sign off the documents yourself. So the lawyer has no legal responsibility and only carries out bureaucratic work. I've been told you can often get gestoras to do it for much less money. If you take a mortgage out the bank tends to take most interest in all the legalities being in order, as they obviously have a stake in the property.
I don't know the market in that area, but if it helps I read somewhere recently that on average most offers come in at 80% of asking price. Also in some areas the market is so cheap that even if it drops by another 20% or so, it's not a big deal. Also you'll still end up paying transaction tax based around the valor catastral rather than the actual transaction value, so be prepared for it being more than you expect.
I don't know the market in that area, but if it helps I read somewhere recently that on average most offers come in at 80% of asking price. Also in some areas the market is so cheap that even if it drops by another 20% or so, it's not a big deal. Also you'll still end up paying transaction tax based around the valor catastral rather than the actual transaction value, so be prepared for it being more than you expect.
#22
BE Enthusiast
Joined: May 2013
Posts: 613
Re: Help-buying a house Spain
You should still never buy without a lawyer, especially if it's a holiday home. A good legal firm will offer the whole package and you don't have to be in Spain at any stage. Porth mentioned Solvia and the properties they have are so overpriced, I can't imagine they sell anything.
#23
Re: Help-buying a house Spain
I didn't use a lawyer as all they do is everything you can do yourself with some careful tedious work in the Town Hall, the electricity office and the water office. It depends on each and every circumstance. I agreed to pay the final bills as part of the deal but I did check who the owners were and the exact boundary of the house.
#24
Lost in BE Cyberspace
Joined: Feb 2013
Posts: 6,148
Re: Help-buying a house Spain
I didn't use a lawyer as all they do is everything you can do yourself with some careful tedious work in the Town Hall, the electricity office and the water office. It depends on each and every circumstance. I agreed to pay the final bills as part of the deal but I did check who the owners were and the exact boundary of the house.
#25
Just Joined
Joined: Sep 2014
Location: Scunthorpe
Posts: 3
Re: Help-buying a house Spain
Thanks for the response. We have seen so many properties and really spoilt for choice. but looking up to £75,000 total including fees etc. We have looked at the Polaris on terrazza or other areas but the community fees have been said to be anything from 1000 euros to 3000 euros and nobody will tell us the actual truth. We would like a duplex with garden for the pooch and community pool. None too flash but with potential. Not for renting out just for us but must take the dog. Anywhere 30 minutes or so from the beach but within walking distance to a bar or amenities etc. To buy just a plot takes courage and well done to you! If we love the life then maybe will jump but for now a holiday home is enough. Thanks again for the response. Nick
#26
BE Enthusiast
Joined: Jun 2005
Posts: 451
Re: Help-buying a house Spain
Thanks for the response. We have seen so many properties and really spoilt for choice. but looking up to £75,000 total including fees etc. We have looked at the Polaris on terrazza or other areas but the community fees have been said to be anything from 1000 euros to 3000 euros and nobody will tell us the actual truth. We would like a duplex with garden for the pooch and community pool. None too flash but with potential. Not for renting out just for us but must take the dog. Anywhere 30 minutes or so from the beach but within walking distance to a bar or amenities etc. To buy just a plot takes courage and well done to you! If we love the life then maybe will jump but for now a holiday home is enough. Thanks again for the response. Nick
#27
Just Joined
Joined: Sep 2014
Location: Scunthorpe
Posts: 3
Re: Help-buying a house Spain
Thanks. I never thought about people not paying the charges. I imagine we will be able to research more when we come out. Thanks again. Nick
#28
Just Joined
Joined: Jun 2014
Location: Almost in Spain....
Posts: 10
Re: Help-buying a house Spain
Hi Nick 6039.
What a small world, I am also a Nick living just down the road from you at Westwoodside, near Doncaster. We are also looking at buying near Alicante in a place called Elche. Lots of good practical advice on here. Good luck.
What a small world, I am also a Nick living just down the road from you at Westwoodside, near Doncaster. We are also looking at buying near Alicante in a place called Elche. Lots of good practical advice on here. Good luck.
#29
Just Joined
Joined: Sep 2014
Posts: 2
Re: Help-buying a house Spain
Hi Guys
Anyone out there who can direct me towards a good english speaking solicitor as I am intending to buy a house in Pego. Thank you
Anyone out there who can direct me towards a good english speaking solicitor as I am intending to buy a house in Pego. Thank you
#30
Re: Help-buying a house Spain
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