Investment Questions And Answers

Last Updated 18/06/2008

Question - "I would really like to buy a holiday home in Spain but I am scared by all the recent news stories about people having their houses knocked down and leaving them with nothing – all their life savings gone in one go. Can you tell me how I can make sure that any property I buy is OK and will be mine for life – hopefully one I can pass on to my son and daughter-in-law?"

Answer - Your primary and most important concern should be to instruct an independent and reliable Solicitor who has experience and knowledge of both the British and Spanish Legal systems. Your independent solicitor will prepare a due diligence report on your potential property and on your purchase contract. You should not be in a hurry to exchange contracts – we all know how persistent the Estate Agents may be – there are plenty of properties and opportunities in Spain to make a secure investment.

There are some important points which once emphasised to you will make you more vigilant and hence reduce the potential risk on your investment. The first point is that, if you look for a property in a rural location or close to the beach, you are more likely to have problems with the Planning Regulations which are applicable to those areas. In spite of this, with enough time your independent solicitor can complete all relevant searches regarding the property ensuring that you will not have these problems. Giving your self the time to do the research and allow your solicitor to complete all the checks is key to a smooth investment process. It is far better to wait a few weeks for example; a certificate from the Town Hall stating that the Building Licence they have granted for a particular development or property has not been challenged, rather than having problems in the future. It is due to lack of time that, a perceived bargain turns out to be major loss.

Sometimes the media is too alarming when publishing news like the ones you refer to, but I must reassure you and invite British people to invest in Spain at present as it is still possible to find really good opportunities at a very interesting price. Yet do not forget to instruct an independent Solicitor with specialist knowledge and experience of both the British and Spanish Legal systems before committing yourself to this investment.

Jordi Sanchez-Tort
Head of the Spanish Law Department, The International Property Law Centre LLP
Direct Dial: 0844 578 4003