January 22, 2006

The importance of using a lawyer's services in all conveyancing matters

For those who have had the misfortune of being ripped off in a Spanish property transaction I can only offer my deepest condolences. However, during my own research most of the people I have spoken to didnīt seek proper legal advice and the intermediary involved was an unscrupulous estate agent from their own country.

With all the news stories abounding the press about Land Grab scandals, over building, illegal issue of planning permission, town halls having their planning priveldges revoked and British buyers having their dream homes torn down as part of the tightening on planning contriols, one could almost be forgiven for thinking that putting any money into Spanish property is financial suicide.

I have lived on the coast for many years and I have met many people who have bought property without any problems. I myslelf had no difficulty when I bought my own apartment. Most of the problems I have heard about occured mainly in the countryside regioins. With the recent tightening of planning controls many of the practices of illegally building properties are being stamped down on hard. Unfortunaly, some innocent people have been caught out by this change, but it's also worth noting that it has been very common practice for people to buy rural/rustic land, construct illegally, pay the small fine and patiently wait until there property is eventuallly classified as being legal. The obvious benefit of this move is they eventually end up with a property that costs a lot less money than buying and building in an area with the correct urban designation. I would not be suprised if many of the people sited in much of the recent press were guilty of this practice.

Typical problems of illegal build are derived from land being miss sold without having adequate planning permission, no electricity or water connection, inadequate access, actual land in the deeds being smaller that what was agreed at the sale, the land being classified as rural, etc. I do believe that the Spanish adminstration is now working hard to close the loop holes and brign the system of town and country planning under some form of control so that with time and increased regualtion these problems should dissapear. A lawyer is there for the reason of conducting the due diligence and advising you in your langauge. My stongest recomendation is to always ensure that you have a good lawer.

The problems I have heard about on the coast involve developers not building what is promised or declaring bankruptcy before the construction is finished, the property being sold with debts, or the seller not having the right to sell the property. Again a good lawyer is always necessary to research the property title information recorded at the land registry. Furthermore, in Spain there are bank guarantees or insurance schemes that must by law be in place for every off plan property and development built. Your lawyers due diligence will ensure that developer has these guarantees in place to protect your deposit money.

So How do you choose a good lawyer given that you may have never been in Spain before.

  • Never choose the lawyer recommended by the agent.

  • Speak to friends and family who may have already bought in Spain and ask for their recommendation.

  • Phone the foreign office or the British embassy in Madrid and ask for recommended English speaking lawyers in the area you are interested in.

  • Do a due diligence and research the name on Google, you can often be surprised what you come across (googles new translation software will allow you to read pages written in Spanish).

  • Prepare yourself so that you understand the buying process, costs and taxes.

  • Find the number for the lawyers bar in the area you are buying and get someone who speaks Spanish to give them a call and ask for a recommendation for the best lawyer.

  • If you are buying in the countryside then use a lawyer who specialises in conveyancing in the country, their experience and local knowledge will be very important if there are any problems to do with the property title that can sometimes be present in older properties.

    • Category: The Costa del Sol Property Market.

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