The Irish Times 12.03

The Irish Times,
2003

His advice for those thinking of making an investment in Spain is simple. It is essential that the buyer seeks independent legal advice before purchasing the property. There are many reputable lawyers and developers in Spain, but we have come across the occasional questionable practice. The common procedure whereby a Spanish lawyer acts for both the developer and the purchaser creates a clear conflict of interest in my view. We provide a full range of legal services to our clients in Ireland to purchasers of residential and commercial property ln Ireland and to client's purchasing abroad. For client's buying properties in Spain we offer peace of mind and convenience and all our work is done through our office in conjunction with our associates who are known personally to me and have a high reputation. In many cases this avoids the necessity of the client having to travel to Spain to complete the formalities to ensure a proper title.

Want to buy in Spain?
What you should do

• Instruct a lawyer to act on your behalf however easy they think the transaction will be. Potential buyers are often advised by local estate agents that this is unnecessary and that the developer or vendor's lawyer will take care of everything, saving the buyer fees. This may not be the case and could result in a financial loss for you.
• Seek legal advice before signing any contract of paying any deposit. Once the contract has been signed or a deposit paid certain commitments have been assumed which may be impossible to avoid or change. It may also be advisable to purchase the property through an Irish company for tax reason: - this decision must be made before the signing of the contract.
• Confirm what the conditions of the contract are and that all necessary documentation is available if the transaction falls through to ensure that the deposit is fully refundable should the vender pull out or have a change of mind on the purchase.
• Ensure all advance payments have a bank guarantee.

The Pitfalls to look out for
Purchasing the property

The conveyancing laws and practice in Spain are entirely different to those in Ireland. In Spain property is registered though not compulsory, in each locality or region, the deed having been signed before a notary. The notary limits itself to the description of the property as it appears in the deed and does not investigate physical boundaries or planning or development in the area and how that may affect the property. The notary ensures that the buyer acquires the property outlined in the deed, it does not play its part in the process until after the contract has been signed and the deposit has been paid at which stage the buyer may have already paid part of the purchase price and committed himself to complying with the contract which may include waivers of nights the buyer may otherwise have had at law such as the payment of taxes by the vendor. Spanish buyers are familiar with these issues whereas an Irish buyer will not be, so tread carefully.