Posted: Tue Oct 10, 2023 2:49pm
In the UK, we have similar concerns - does the person I'm buying from actually own the property? Do they own the land that the property was built on? Was the property built with correct planning permission, etc.? How do I know the property was properly built? Is the agent working for me or for the vendor?
Although this may not necessarily work for you, this is the process that I followed, which worked for me and may help you...
I looked for properties on www.rightmove.com/spain as, in the UK, Rightmove is a well-established website for advertising properties for sale. Therefore, I believed that they may carry out checks on estate agents (or certainly not want to be knowingly or unknowingly involved with any rogue agents). They also provide a basic guide in how to buy a property in Spain.
Similarly, there is a well-known TV programme in the UK, called 'A Place in the Sun' which features Brits looking to buy properties abroad; and they have a property website, similar to Rightmove. They recommend various services, including solicitors, so I used a solicitor recommended by them, called Peter Esders at a legal firm called Judicare that specialises in purchases of properties abroad. This meant that I was dealing with a UK-based solicitor, fully approved and regulated in the UK, who speaks English - and then they used a partner firm in Spain for the Spanish side of the transaction. In general, always use an independent solicitor, never one recommended by the estate agent. Your solicitor works for you, in your interests only and should check all the points above - who owns the land, etc. Plus, in Spain, properties require a 'certificate of habitation' and you shouldn't buy a property that doesn't have one of these. If you are buying a new build or 'off plan' property, be extra cautious!
I have never known an estate agent ask for money to provide details of a property - so this sounds very dodgy! They are paid by the vendor and should never charge a prospective seller (I think this is actually illegal in Spain). Solicitors, however, will commonly ask for 'payments on account' as their work progresses, in case you change your mind about the purchase and then don't pay them.
In Spain you will commonly pay a holding deposit, which you forfeit if you pull out of the deal (so only pay this if you are fully committed to the purchase - and don't be pressured to pay it before then). The vendor should also pay a deposit equal to 2 times your deposit, which they would forfeit if they pulled out (this is to deter gazumping). You then normally pay 10% of the purchase price in an advance payment and then the balance on completion and exchange of contracts, hand over of keys, etc. In all, you should allow 12%-13% additional to the purchase price to cover all the associated fees, taxes, etc.
Finally, if a deal 'sounds too good to be true', it almost certainly is! There are lots & lots of properties for sale and if something about the agent, the vendor, or their solicitor doesn't feel right, then don't proceed - you will find another property!
All this said, hundreds of thousands of properties are successfully and correctly bought & sold in Spain every year, so as long as you take some basic precautions, then hopefully you will be one of those!
Hope this helps!