Does bargain property in Spain really exist?
Does bargain property in Spain really exist ?
Many customers are buying Spanish houses in the Alicante Sur and Murcia areas and they all have something in common – they all want to buy houses sold by the banks with big discounts.
But, I ask, are these discounts real or are there any hidden surprises?
Well, in reality the saying ‘you get what you pay for’ tends to be as true now as ever before!
Indeed, what lies behind many of the the discounts on Spanish properties sold by the banks is the fact that there are many houses priced above €200,000 – without electricity or water.
Well, the banks say that as they have so many houses for sale that they can not afford to pay the monthly fee to the service providers for the provision of electricity and water!
Whatever the ‘reason’, I could not believe it when I first conveyed a Spanish property with these characteristics. The bank was selling the house concerned with no electricity or water and furthermore I had to obtain the Certificate of Occupancy – to be able to get the electricity and water put on! This can be a problem, to put it mildly.
It is clear that people are blinded by discounts and do not think about the problems that may come with discounted houses in Spain.
In fact, I always advise my clients to make sure the bank selling one of its properties in Spain signs a sales contract agreeing that the bank will be responsible for having all the documents in order for the date of purchase of the house before the notary.
However, as few as two out of every 10 customers make sure that the selling bank has all the documentation in place before signing the Escritura. The result is that I receive clients who have bought a Spanish property and then found that obtaining the Certificate of Occupancy is by no means as easy as they thought! Indeed, this can cost significant money and take considerable time, especially if the previous owner had made modifications to the house without a license (as is often the case!).
Do people never learn – or listen carefully to sound legal advice?
To all of you who wish to buy a house in Spain, I would urge you not to buy a property in Spain – if the house has no electricity or water.
Incidentally, the banks would not give you a loan if your house in Spain or (intended house in Spain) lacks a Certificate of Occupancy – so why should you buy one from them that lacks this absolutely critical document…