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• Do's and don't when buying a property in Spain
• Moving to Spain
• An investment property in Mauritius

Purchase

Buying property in Spain has many potential pitfalls and is subject to different legal procedures than in UK. Below is a list of do's and don'ts to assist buying a house or flat in Spain.

DO

• Use the services of a reputable local lawyer. Only a lawyer will know all the checks that should be made before parting with money.
• Remember that you will have to use the services of a Public Notary. The Notary is not acting for you, and will not give advice. He/she is an official of the state whose job is to ensure that all transactions are in the proper form.
• Remember that the parties to a sale and purchase have to appear in person before the Notary at the same time. If they do not want to appear in person, they can give power of attorney (in the Spanish form) to their lawyer (or anyone else) to represent them.
• Obtain an estimate of legal fees and disbursements including the fees of the Notary and the Property Registry and for the power of attorney, and confirm who is responsible for payment of the Notary's fees and any capital gains tax which may arise from the sale.
• Use an estate agent. They will be able to show you a selection of properties in the area of your choice, and have an idea of the value of the property of your choice.
• Unless you speak fluent Spanish, always have documents translated for you into English by someone you can trust. It is worth the expense of having lengthy documents translated, e.g. title deeds, so that you understand fully what the original documents say and mean.
• Ask your lawyer to confirm to you into writing that there is no mortgage or other charge or encumbrance registered on the property you are intending to buy, that it is registered in the name of the seller, and that there are no outstanding local taxes or capital gains tax ('plusvalía'). Make sure that all the community payments are up to date. In Spain, blocks of flats and houses form communities and pay a monthly amount which covers communal expenses, e.g. water bills, electricity in communal areas and sometimes central heating. If you buy a property which has these payments outstanding, you will be liable for them as the new owner.

DON'T

• Think you can buy a property without taking professional advice. If you do you could end up with neither property nor money.
• Part with any money unless you are absolutely sure what you are getting for it and have received professional confirmation that everything is in order.
• Rush into what appears to be a bargain where you are offered considerable savings if you act quickly.

The Foreign and Commonwealth Office cannot give legal advice on buying a property in Spain but each consular post can supply a list of local English-speaking lawyers. Further information is available from:

Institute of Foreign Property Owners (Instituto de Propietarios Extranjeros) Conde de Altea 33, 03590 Altea (Calpe) Tel: 95 584 32 12

Association of Spanish Property Owners West Heath House 32 North End Road London NW11 7PT

Rentals

Rented accommodation is regulated under the 1.1.95 Rent Law, In general terms the law prescribes that rents, contract duration and renewal periods can be agrees between the landlord and tenant. The latter has a guarantee of renewal, if sought, for an initial period of five years. Rents are usually updated on a yearly basis during the initial five years on the basis of the Consumer Price Index. If the tenant wishes to terminate the contract at the end of the initial period or at one of its yearly renewals they must give one month's clear notice. Failure to give proper notice may mean the tenant will be liable to pay compensation to the landlord.

There is provision for the tenant to pay a deposit of one month's rent for unfurnished accommodation or two for furnished accommodation. This is lodged with the local autonomous community as a guarantee to both tenant and landlord. Additional guarantees may also be negotiated.

Timeshare

Timeshare ownership carries many risks and dangers. Prospective purchasers are advised to study any offer carefully. They should never sign anything unless there is written provision for a 'cooling-off' period (during which time they can change their mind without incurring a penalty).