Buying Property in Spain: Risks and Rewards

For many aspiring expats and emigrees, buying a property in Spain represents a dream that will provide
them with either the perfect holiday home or a new life in a country justifiably famous for its superb
quality of life.

After all, what could be better than living in a country with a wonderfully benign climate, a friendly and
tolerant population, an intact culture and an al fresco life that lasts for much of the year? Add to this a
services infrastructure that is well developed, an accessible language, quic and efficient communications
to !urope and political stability " and you have somewhere that is ideal for retirement or holidays.
#owever, there are pitfalls to buying property in Spain
which can swiftly turn any dream into a nightmare$

%ndeed, anyone that&s started to research buying property
in Spain will most certainly come across the handfuls of
international news stories of expats who have unnowingly
bought illegally built houses or suffered from 'land grab&
and the costs associated with infrastructure wors.

So, the question is( how do you avoid the pitfalls inherent
in buying property in Spain?

)his is a question that is, arguably, more important now
than ever before, as foreign buyers see to tae
advantage of the collapse in Spanish property prices. )hese have dropped massively since the height of
the boom in *++,, and have resulted in a sea of bargains, with some properties in Spain having dropped
in value by as much as -+ percent.

For the first time in many years, Spanish property has become affordable again with some properties now
offering truly extraordinary value for money.

)he first thing to appreciate is that you can buy Spanish property safely$ .ost people do " although a
significant number still end up with problems, partly due to their own stupidity and partly due to the
'system& in Spain.

)he ey, of course, is nowledge. /efore you thin of buying Spanish property, mae sure you now what
you are doing, and are familiar with the way to buy property in Spain.

Rules for buying property in Spain

0. 1ever thin that the process of buying property in Spain is the same as for your own country.

!2 law is not identical in all !2 member"states, so do not come to Spain thining that the way things are
done in the 23 or 4enmar, for example, is same for Spain. 5aws may be similar, but not the same. So
be far more cautious than you would be in your own country( triple chec everything, and be sceptical
and disbelieving until every aspect of your intended property 6such as its legality and potential liabilities7
is categorically proven to your satisfaction 6in writing$7.

*. 2nderstand an outline of Spanish property law.

8ou must understand the distinction between 2rbani9ado, fully 2rbani9ado and :ural before you thin of
buying in Spain. )hese designations define 6to a large extent7 the nature of the property you intend to
buy, and whether the property is liely to be legal and free of potential state"imposed liabilities.

2rbani9ado crudely means building land ; somewhere that can be built upon, subject to compliance with
planning regulations. Fully 2rbani9ado is when all infrastructure wors have been completed 6which you
may otherwise have to pay for$7. :ural means agricultural land, and if land falls in this category there are
very significant constraints that restrict what can and cannot be built, and the si9e of what can be built.

<. Always use a conveyancing lawyer.

%t is astonishing how many people do not use a lawyer for their purchase of Spanish property, and
instead use an estate agent or other unqualified person. )his course of action can have devastating
consequences.

)hat said, if you mae the informed decision of using a lawyer, then mae sure that you use a lawyer who
speas your language fluently, is independent of the seller and any estate agent, is registered with the
=olegio de Abogados and has significant public liability insurance 6some have very low cover7. Finally,
mae sure that all advice provided is in writing and eep a copy.

Sadly, the standard of legal practice in Spain is generally often poor, and is notable for conflicts of interest
and sloppy practice. So, mae sure that you spend time to obtain the best possible lawyer ; before you
start looing at properties.

-. 1ever sign anything unless your lawyer is present and it is translated into your language.

)his may seem obvious, but people repeatedly sign documents without fully understanding their
meaning. So always, always go to your lawyer whether the document is an agreement with your estate
agent 6some can result in very severe, 'hidden& fees$7 or a seller.

>. 8our estate agent is not your friend, he is a salesman.

1ever confuse your relationship with an estate agent, and never let him become involved in the
conveyancing of your intended property. !very agent is a salesman with one aim, and that is to gain a
sales commission. )he latter can be very high in Spain 6up to 0? percent$7, and so you represent a vital
source of income that may result in the agent obtaining a very si9eable sum of money. %ndeed, your sale
may represent, in sales commission to the agent concerned, more than an average Spanish salary.
So, turn to objective professionals, such as lawyers and surveyors, for all advice and
investigation.

@. Always use a building surveyor before you buy a house.

Ance again, it is ama9ing how few people use a building surveyor prior to buying a Spanish property.
Bhile it is certainly not common practice to solicit these services in Spain, it is still recommended that
you do so, despite what people may tell you.

1eedless to say, the long property boom in Spain has led to many variations of quality in property
construction. Bhile some building has been of the highest standards, this has been matched by some
very poor and sub"standard building, which you should mae an effort to avoid at all costs$

Addly enough, the profession of building surveying as understood in the 23 does not exist in Spain.
#owever, there are some really excellent 23 fully qualified building surveyors in Spain who will undertae
a proper and rigorous building survey. 2se one ; but mae sure that he is fully qualified, and has valid
insurance to undertae a survey in Spain.

,. .ae sure that your intended property has mains water, electricity and telephone land line.

!very Spanish property in an 2rbani9ado area should have mains water, electricity and telephone land
line 6with A4S5 available7. %f the property does not " then be very wary, as your intended property may
not really be2rbani9adoC and, if that is the case, it may never be connected to these services ;
regardless of what your agent or the seller may be claiming.

?. Always buy as if you are going to re"sell your intended property.

A classic error of many buyers is that they buy a property in Spain that is suitable for only a tiny
proportion of the buying maret, thus maing any re"sale very difficult. Almost by definition, any
property purchase abroad may not be for ever, whether it is for a holiday or intended for permanent
living.

So, loo for obstacles that would 'turn off& future buyers. !xamples are steep plots, many stairs up to or
down to a property entrance, problems with paring, shade from the sunshine 6common to hilly areas7,
too few bedrooms 6a minimum of three is good7, noise from nearby roads, lac of privacy, nearby
electricity pylons, bars and restaurants close by, an overwhelming density of foreigners 6which may put
off Spanish buyers ; who are the biggest buying maret7, etc.

D. 5ocation is everything.

=hoose your location very carefully, particularly if you are buying a property for permanent living in
Spain. /e wary about entering an expat 'ghetto& 6however expensive7, tae care not to live too far from
'civilisation&, and beware of being 'sucered& into buying a pretty property because it has lovely views of a
glittering sea. After all, properties are immobile, and full"time life in Spain requires a location that will
provide you with 'life&( people, a community and proximity to services and amenities.

A crude guideline for buying in Spain 6for permanent life7 could be summarised as being somewhere that
is(
Bithin two minutes of a village
Bithin 0> minutes of a major town
Bithin one hour to an international airport.
Ereferably, the sea 6for re"sale and rental purposes7 should be no further than 0> to *+ minutes from
your intended property.

0+. A bargain property is not the same as a good value property.

)he Spanish property crash has resulted in a vast number of properties being for sale, some of which are
now priced breathtaingly low. #owever, do not be mesmerised by low prices. )here is invariably a good
reason why a property has a very low price, and this may be because it is a deeply flawed property. So
find out the objective reason for its pricing before buying, and be sceptical of over"cheap properties.

%f you follow the rules listed above, you will buy safely in Spain, and will liely be rewarded with a
property that will not only be a sound investment, but also a home that can provide you with real joy.
About the Author
Britten by 1ic Snelling, author of '#ow to /uy Spanish Eroperty and .ove to Spain ; Safely$& available
from Ama9on, 3indle and all good booshops.