Buying in North Spain

Buying Property In Northern Spain - The Pitfalls!

In Spain contracts can be signed at an early stage which is mainly not the case in the UK. If you wish to purchase a property in northern Spain, often referred to as Green Spain or the Costa Verde, there are important regional issues to consider as well.

The terms of the contract to purchase a property in Asturias, for example, will differ from neighbouring Cantabria or Galicia. Sign what may appear to be an innocent piece of paper registering your interest in a property and you could be committing yourself to a purchase you can ill afford; fail to take the appropriate advice and you could find yourself in legal and financial problems.

Whether you are purchasing a new chalet or villa, or an old stone cottage in need of renovation, or an apartment on the coast, it may have been constructed without formal regulation and in northern Spain in particular there has been a history of varying methods of construction built to differing standards.

Commissioning a survey of a property from a qualified surveyor and taking the proper legal advice should always be considered before committing to a purchase. A survey can save you both time and money and can be used in the negotiating process.

The most common approach to the purchase process is to agree a preliminary contract (contrato privado) which should contain a number of routine clauses including the amount of deposit to be paid. Once signed, this will give the purchaser certainty in proceeding without the fear of being gazumped. However, it is fundamental that this document is properly drafted by a professional.

It is recommended that full searches and investigations be carried out prior to signing the private contract. Standard checks include investigating the planning status of the property, whether or not the seller is the registered owner; and whether it is being sold free of mortgages or other charges. Checking the property description and boundaries is particularly relevant in the north of Spain as many properties are unregistered having been passed down through the family generations. The formal transfer of the property is made in the presence of a notario by the signing of the deed of sale (the escritura).

Taking professional advice will ensure that your investment is sound. Please contact us to discuss our home buyer and survey packages.