Pellicer & Hereda International Solicitors, Barristers and Tax Advisors give their thoughts on what to remember when buying property through the Spanish Courts.
Can I buy a Property through a court auction?
Yes, normally you can buy properties that have been repossessed by a bank or a third party.
What do I need?
In Spain it is advisable to employ a lawyer and a court runner to represent you through the auction process via a power of attorney.
1. If you are interested in a specific property that is being repossessed, you will find them published through the Court Public Information Board. Remember that information on the property will be limited.
2. If possible, ask to see the surveyor’s report if one has been submitted.
3. Check how much outstanding debts are against the property.
4. The deposit on a property in a Court auction is typically 5% of the auction price.
5. An offer can be made on the property, however it is down to the courts to accept any offers made. This will depend on the type of property (main residence of the debtor or not) and the outstanding debt against the property.
6. If the main creditor is awarded the property, he could transfer his rights to a third part with the Court’s approval and avoid further conveyance.
7. Once your offer has been accepted, you must pay the total amount in 40 working days immediately after the auction. If you don’t you could lose your deposit.
8. You will be able to register the property and pay the Transfer Tax, as soon as the Courts provide the title.
9. You may petition the courts for possession of the property before it is registered. However the transfer taxes must be paid beforehand.
For further legal advice please contact:
T – (0034) 765 480 737
*Original article was published in Euro Weekly. All rights belong to Pellicer & Heredia*