Buying property, apartments, villas, cortijos and fincas on the Costa Tropical in Spain, advice and help.

1) Buying

The process of buying a Spanish Property is very different from that of the UK. And, while it has many similarities with some other European Countries, there still remain some local differences. The basic principles are, of course, the same. It is necessary to ensure that the vendors have good title to the property they are selling; that it is fully compliant with all national, regional and local regulations in other words, it is “legal”. This is so important it cannot be overstated, due to the complexity of Spanish Planning Regulations.

The single biggest pitfall for buyers from overseas has historically been a failure to dig deeply enough into the real planning status of a Property, before purchase, and that it complies with all Planning requirements (Local, Regional and National). For example, it is simply not enough to be shown a Town Hall document certifying that the property is “approved” – because there could well be an over-riding Regional Planning regulation which has not been complied with. It is also, as another example, crucial to ensure there are no outstanding debts against the property – because in Spain such debts attach to the property itself, not to the owner. These are just a couple of examples where Spanish Law regarding Property and Planning Permission possibly differs from your Home Country, and where it is critical you prote4ct yourself by obtaining the right advice from a qualified source.

Another key difference between Spanish Property Conveyancing Law and that of, for example, the UK, is in the timing. At the heart of the transaction in either Country is the “Contract”. But (and it is a big BUT), whereas in the UK, nothing is binding until Contracts are “exchanged” between respective Solicitors, in Spain the Contract becomes binding the moment both parties have signed it.

It is therefore critical that any contract you sign includes any clauses which might prevent you from completing a purchase – e.g. “Subject to Survey”, or “Subject to Mortgage”. And you should NEVER hand over a deposit on a Property until you have sound legal advice that the proposed contract satisfies all your needs and concerns.

Espin & Rodriguez are highly experienced and qualified in all aspects of Spanish Property Law, and will guide you through every step of the process, with personal attention to your individual situation. The best advice we can give you here, is that the earlier in your buying process you contact us, the better job we can do for you. Even if you are just beginning to look for a Property to buy, a quick (and free) consultation will equip you with many of the key things to look for, and pitfalls to avoid.

2) SELLING

If you are selling a Property in Spain, then of course you are not at the same risk as a Buyer might be. However, there are still some risks involved, and it is important to avoid them, Otherwise, you do run the risk of having a Sale you thought was rock-solid, turn around on you, with potentially disastrous consequences.

The first, and most important thing to understand that the wording of the Contract of Sale dictates the terms under which the Sale will be completed. And this should be written with careful attention to your own particular circumstances and a full understanding of the Spanish Law regarding such transactions. Otherwise, there is always the possibility of either your Sale falling through, or – after the sale has been “completed” – an unhappy buyer coming up with something to argue about, possibly in a Court of Law.

You should also be aware that, in Spain, once you sign a Contract of Sale for a Property and accept a Buyer’s Deposit, you are absolutely committed to completing the Contract as agreed. The most used form of Contract will land you with a Penalty of no less than double the Deposit you have been paid. But – and here is where we can advise you, it is not too difficult to have a different form of wording, to avoid you falling into that potential trap.So you see how important the wording of the Contract can be.

It is normal for this Contract of Sale to be drawn up by the Vendor, then signed by both parties. In order to ensure your security, it is important that the details essential under Spanish Law are completely in order.

These may seem to be minor; things like ensuring your Title to the Property is properly registered, and there are no charges outstanding against it, but they are hugely important in ensuring the sale of your Property is completed without fear of any problems coming back to haunt you. And, of course, there is always the money! We will ensure that the funds due to you are correctly presented, in a fully legal manner.

Our experience in Property, Urban Planning and Contract Law is here to help you to avoid any of these problems. We highly recommend, if you are a Vendor, that you do NOT rely upon a Lawyer retained by an Estate Agent, but seek your own, Independent legal advice.

Espin & Rodriguez are happy to provide you with a free initial consultation regarding your own situation, and to prepare a Contract designed to ensure your security, and a transaction free of headaches.

3) LEASING/RENTING

If you fall into any of the following categories, then you really should obtain some qualified Legal advice:-

1) You own a Property in Spain, which you are just renting out as a Holiday Home for a few weeks per year.

2) Your personal financial planning involves longer-term letting for income purposes.

3) You are considering becoming a tenant for any period of time.

4) You are considering living in a rental property prior to perhaps making a purchase.

Why? Because the essential Spanish Law affecting the Property Rental market is extremely specific, and cannot be by-passed with any private agreement. For example, there are major differences between what you can agree in a contract for a short-term (say, for a Holiday) let and a longer term arrangement. The rights and obligations between the two parties to the contract are governed by different laws.

Before you make any agreement, whether you are a Lessor or a Lessee, you really do need to make sure of two important things:

a) You have a contract specific to your individual situation, agreed to, and signed by both parties.

b) The contract must comply with the over-riding Spanish Laws – otherwise it will be completely invalid if challenged in any Spanish Court.

In all these circumstances, we again recommend you avoid signing anything called a “Standard Contract”, particularly if this represented to you by anybody but an independent, qualified lawyer.

Espin & Rodriguez are happy to talk to you, free of charge, to explain to you your rights and obligations under the Law either as Landlord or Tenant, and to assist you in reaching the best possible agreement. There are also Spanish Tax implications for both parties to Rental agreements, which our expert Partner in Spanish Taxation .can explain to you, as an additional free service. .