Some people decide to buy real estate in Spain spontaneously. They vacation or visit the country for their own purpose, fall in love with the pleasant climate and festive atmosphere and make a choice of property purchase on the spot. Most foreigners prefer to buy sea view apartments in Spain because of outstanding comfort and convenient location. However, more often it takes a long time for future owners to come to this decision, weigh the pros and cons, ask a lot of questions on local forums, and consult with those who have already purchased the cherished Spanish property.
Each approach is possible and effective if it suits a buyer`s needs and desires. But in each case, it is advisable to become aware of common pitfalls that may wait for investors in the process of a deal.
Common possible issues when buying real estate in Spain
To buy real estate in Spain without any upsetting moments, it is necessary to know all the details of Spanish legislation or address a trusted real estate agency. Generally speaking, each property buyer may face the following pitfalls.
- Inexpensiveness of social housing.
- Debts from previous owners.
- Absence of necessary documents.
- Having no budget on extra expenses.
- Desire to do everything by yourself.
Inexpensiveness of social housing
Social housing is a category of real estate that requires special attention. Usually social housing is sold at a very low price that is why it needs a double check. But it is better not to forget and find out what the restrictions are. For example, the ban on renting, the ban on resale, the fact that the land plot is owned by the municipality, etc. Roughly speaking, it is advisable to pay some more money but be sure that your housing has no hidden problems and you can manage it according to your desires.
Debts from previous owners
When buying a property, the buyer may also receive, along with the keys, the encumbrances that the seller has concealed. In Spain, debts and burdens are attached to the property. To avoid this situation, you must apply for a certificate, which will specify what encumbrances lie on the object – it may be a mortgage, fines, attachment to the property, etc. For example, in the case of a mortgage, take a certificate from the bank, which calculates the amount to repay the mortgage on the day of sale, so the day of sale will need to make sure that after the transaction the seller made the missing amount in the account and the bank removed encumbrances in the form of a mortgage from the object of purchase.
Absence of necessary documents
This point has an extreme importance for both sides.
- A buyer should check the documentation provided by the developer.
- A buyer should have all the necessary documentation to perform the deal.
Here is a list of documents that give really important information about the developer and the construction project, for the sake of which everything was started.
- The founding documents of the company-developer.
- The license and permission to carry out construction.
- Project declaration.
- Documents for the land – certificate of ownership or lease agreement.
- Documents about the financial condition of the company.
In order to purchase a property in Spain you will need to have a NIE number and a Spanish bank account. If you don’t have these registrations in place before you start the purchase process then it is likely to delay things, and make the process much more time-consuming too.
Having no budget on extra expenses
The housing object may be advertized at an amazingly alluring price, but the buyer should not be misled. You need to be financially prepared to perform the purchase and pay extra expenses. As well as the property purchase price, you also need to allow enough funds to cover the associated taxes, legal fees, and any related estate agent fees too. Removal costs and the costs involved in furnishing your new Spanish home can also add to the amount of additional funds you will need to have to make your move as easy and comfortable as possible.
People also often tend to forget about mortgage fees and while mortgage interest rates are at historic lows in Spain, there are also some extra fees that you have to consider. The majority of banks in Spain also require you to take out at least one type of insurance with your mortgage, while you should also keep in mind that the amount of money that banks in Spain will lend you depends on a series of factors.
Desire to do everything by yourself
The most important thing to understand not to end up losing all your money is the legal side of the purchase. If you cannot boast of incredible knowledge of Spanish legislation or even in-depth research of important options, it will be wise to contact the certified real estate agency. The help of a trusted real estate agency allows not only choosing a property of your dream but explains key property market insights. Besides, a professional lawyer is one more right person to address to examine the conditions of sale, sign the relevant documents, and go through the web of bureaucracy that is involved in buying a house in Spain.
Starting a new life or an investment project in Spain should be an exciting experience. However, it requires high responsibility and particular attention because of differences in the legal system and language barriers. The best decision is to start investigating the Spanish real estate market with the help of a major aggregator Spain-Real.Estate. The website offers the housing units of various footages, different designs, and beneficial rental opportunities.
Buying real estate is always a time-consuming process, and sometimes even risky when it happens abroad. And it is not just about the fact that you can become a victim of fraudsters and lose money, but that in Spain there are some kind of pitfalls completely legal, entailing, hidden at first, costs from the buyer. However, all of them can be avoided if you are aware and work with the professionals.