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Commissions in coastal areas
Most Europeans will be surprised to find that estate agents dealing with Spanish holiday property take commissions starting at five per cent and going up to 10 per cent. These high commissions, say the agents, are justified because they have to deal with many unusual factors in a market where a buyer comes from one country and the seller from another and the transaction takes place in Spain, a third country. They also cite high marketing expenses from international advertising.
Let’s just say that, when you are in the final stages of negotiating your purchase price, even the amount of the estate agent’s commission might come on the table for a little reduction. Keep in mind that the API, for example, recommends three per cent commission for its agents in most areas of Spain.
Spain has all sorts of estate agents, ranging from the small office in the High Street, who has been in the town for many years and knows everybody personally, to the most modern international real estate offices, filled with computers.
Some of the major agencies can contact their offices in Frankfurt or London by Internet, and screen you five views of their offerings right there on the computer. In addition, there are many “Euro agents” of all nationalities who quite legally operate in Spain, although their credentials may not be as well established.
One of these agents should be able to find the property you are looking for. Very few agents in Spain are exclusive, so you might even find two agents showing you the same property
The estate agent is working for the seller, so his presentation of the property will be the most favourable one, and you should check the facts carefully through your own representative. A reputable estate agent will be very happy to have you verify any of his information through your own lawyer, for example
Your Spanish Lawyer
Quite a number of the Spanish lawyers who practice in areas where foreigners settle speak excellent English, among other languages, and are accustomed to dealing with foreign residents in Spain and their special problems, including property transactions.
How to find a good Spanish lawyer? Good question. Here is perhaps the only area in which you can ask advice from people you know Ask around until you find some satisfied clients.
Consulates maintain lists of lawyers who speak the language of their nationality The British and American consulates, for example, can provide you with the names of lawyers in your area who speak English. They are not recommending these lawyers as the best available but only because they speak your language.
How much will it cost? Figure the lawyer will charge you around one per cent of the value of the transaction, unless there are some unusual complications. Settle this with him before you start.
What to watch out for
Both the European Union and the Spanish government have investigated fraud reports in holiday property, revealing the presence of illegal urbanisations where unwary buyers end up having problems of unpaid taxes, unregistered title deeds, and difficulty in obtaining municipal services or building permission. Spaniards have also been defrauded and problems with house purchase make up a principal area of complaint for the Spanish consumer associations.
To make sure your urbanisation is legal and registered, ask to see the plan parcial approved by your Avuntarniento, or town hall. The plan parcial is not a partial plan, as it sounds, but the plan of parcelas, or building plots, which must be approved. This assures you that your urbanisation is legal and registered. If it isn’t, you may have problems later with your community of owners, with municipal services such as light and water, and obtaining from the contractor all the elements promised in your sale.
If it is on the beach, make sure the development is approved by the Jefatura de Costas as well as the town hall. Spain’s 1988 Ley de Costas, or Law of Coasts, empowers the authorities torestrict building and to control height and density within 100 metres of the high-water mark.
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