Buying Property in Spain - Red Tape and Other Legal Concerns
When you buy property abroad, it's very important that you familiarize yourself with the particular property laws of that country. For example: some newly developing countries require that you've all funds up front when you purchase a property. There is no contract period in which you can secure financing. You have to have financing in place before you can look at properties. As you can imagine, not knowing this fact ahead of time could cost you.
One of the most popular places where Brits purchase property abroad is in Spain. If you're thinking about buying property in Spain, there are a few things you should be aware of. The laws regarding property purchases in Spain are quite different than in the UK. You should be prepared to do a lot of legwork and research on your own. Failure to do so could leave you stuck with a few costly problems.
One of the main differences between buying property in Spain and buying property in the UK is the title or deed search. In the UK, your agent will see to it that a title or deed search is performed on the property. This will inform you if there are any liens on the property or any back taxes owed. In Spain, your agent will not do this for you. it's up to you to research the property and see if there are any debts tied to the property. If you purchase a property with debts attached to it, you'll become responsible for those debts at closing.
You will also have to check with the city planning authority to see if there are any future construction plans that involve the property you want to buy or any close by properties. Under Spanish law, the agent and seller doesn't have to disclose this information. You could move into a home with a glorious front yard only to learn that an upcoming highway project is going to take some of that yard away from you.
If the property you purchase is in an urban area, there is an unpopular law that could force you to pay for upgraded roads and infrastructure in the area in which you live. it's called the LRAU, and you should comprehend it fully before you purchase property in Spain.
When you purchase property you should have an inspection and appraisal performed. There are no exceptions to this rule. An inspection will reveal any defects in the property and point out current and future costs for repairs and maintenance. An appraisal with determine a fair value for the property so that you can be sure you're not getting taken.
When you buy Spanish property or any other type of property, you owe it to yourself to be as informed as you can be. Knowledge will keep you from making costly mistakes that may haunt you for years after the sale is final.
Steven Clarke - Marketing Manager for http://www.spanishpropertyclub.org.uk
Spanish Property Club brings buyers and sellers of properties in Spain together and contains 1000's of Spanish properties for sale across all the top locations including Costa del Sol, Costa Blanca and Costa Calida.
