From many years ago, the Costa del Sol, has been desired by citizens of other countries within and outside Europe. Its climate, its cuisine, its openness to other cultures, a Phoenician heritage that distinguishes us from other parts of Spain, have made this area a clear objective for international tourism. In the case of Malaga, this attraction goes beyond the matter of coming for a few days in order to have some fun and relax far from home, encouraging the desire to reside definitely here.
Personally
I feel being a very privileged person, among other things because I
live together with people from many other nationalities. My
neighbors, mostly, are from Scandinavian countries such as Denmark,
Sweden and Norway. There are also French and English people and, of
course, people originally from Málaga. This coexistence makes our
daily life much more pluralistic than elsewhere. This mixture of
cultures and traditions makes, step by step, all of us accepting and
taking a bit of each of those neighbors, reaching an extraordinary
coexistence.
We
can say that the intention to invest on the Costa del Sol often
becomes into the desire to fulfill a real dream. Many people who, in
principle, are only looking for an investment for the future, when
they meet «the product» they have decided to become such
investment more into a long life project. Indeed, my experience as a
Lawyer is that people who were originally interested in a cold and
objective way to invest their money in this area, when they have been
for some time looking for the ideal place, they realize that this
project is not going to be in simple investment. However, my personal
experience, also tells me that this project does not always work,
becoming, sometimes in a real and painful hell. Trying to avoid it is
only in our hands.
In
the process of Real Estate investment, buying a property that will be
used as a holiday one or even as our habitual residence may arise
problems of many kinds. In many occasions once we have acquired a
property we discover that some debts may be paid by us. Sometimes
they are small amounts of many, but in other occasions we must face
big debts (coming from the electricity or water supplies and other
duties. Some other times, when in the Notary, we can not sign since
some important documented is missing, or someone who should sign the
transmission (according to the Spanish Law) has not been called.
Normally we speak about some details that are beyond the knowledge of
individuals (most of times they are problems that have arisen as a
result of a recent change in the Law. Sometimes, it may come from a
ignorance of the Law of some professionals not really specialized on
Real Estate Law.
To
avoid such a problem, first and mainly I would suggest asking for the
services of a professional who will take care of every detail
involved in the process. This should be a professional specialized in
Real Estate Law. He will keep us safe of unpleasant problems that may
transform a dream into a nightmare. This should not be a problem,
since in the Costa del Sol we are plenty of Law Firms specialized in
Real Estate Law, sometimes offering only this service. In our
particular case, we, Pedro Quesada & Associates, although
offering a complete legal service, we have specialized Lawyers
dedicated, only and exclusively, to Real Estate Law. Personally I’ve
only faced these problems described ut
supra
in case of local clients and Spanish people in general.
Unfortunately, unlike the regular European client, our compatriots
consider they do not need a professional to take care in this sort of
processes, and when problems arise, it may be too late. It is really
important to hire the services of a professional to watch, closely,
that all steps aimed for the acquisition of a property are complied
scrupulously avoiding troubles of different nature when taking
possession of the property. This is probably the most important
investment we will make in our lives. All cautions will not be enough
in this occasion.
On
the other hand, and before taking the final decision, in order not to
have possible problems in the future, we should count on Real Estate
professionals who will guarantee us a fine service taking care of us
before, during and after the purchase. We should make it sure that
there is a real place where to found them, an office and not only an
email address. It seems that this is a truism, but the reality is
that some people engaged in the Real Estate market, they prefer
giving only an «on line» service in order to avoid
expenses. But this may bring troubles in the future, in case of any
problem related to our purchase.
Once we have decided on the desired property, and sometimes before
meeting our Lawyer, it is really important to specify in writing
through a reservation contract all the details that seem for us
relevant, furniture include in the property, fixing imperfections,
etc … It is important in order to keep it in mind in the writing of
the private purchase contract which will preside all the purchase
process. With these specifications in the reservation contract, the
Lawyer is legitimated to write a contract according to our desires.
In case the professional will not have proof of these specifications,
it will be really difficult to include them in the contract and
ensure its compliance.
Finally
it is time to choose the best friend you will have for a period of
time, probably, and if all goes in good order, it will become into a
long life relationship, your Lawyer. It is essential to know
personally the professional who will advise you about any questions
or queries you will have, not only related to this investment, but
also in every aspect of your life, that will seem relevant. Please,
make it sure that it is a professional registered in an official Bar
of Lawyers in Spain. This fact is especially relevant since it will
guarantee you a sufficient liability in case of default of any kind
or professional negligence.
Once
you have chosen a concrete Lawyer, it is essential to provide him
with all the information and paperwork you may have. It is very
important, if possible, to have a personal interview with the Lawyer,
in which you will specify the details related to the purchase (each
purchase is a pretty different one) and will ask each question you
may have in relation to it. Probably there will be a lot.
In
case you may reside away from the property investment, even in other
country, you would better sign a Power of Attorney no to have
problems in the process. Though some questions can be solved by the
Lawyer as a verbal mandatory, most of them will require a document
sign before a Notary. In this case you can fully trust on the Lawyer.
Despite having our permission to perform any legal business on our
behalf, the fact of being registered as a lawyer with an official
number of member of a Bar of Lawyers Association, as I said before,
it grant certain obligations of best governance from the Lawyer that
give you the possibility to claim in case he should not do his work
tightly with the Law. This Power of Attorney will not only
legitimate your Lawyer to solve some questions related to the
process, but also will let him/her apply for necessary documents for
the signing and many other need. It is absolutely recommended.
From
now on, you can be sure the Lawyer will watch out for the process. I
would advise you not to hurry the professional. His obligation is to
ensure everything will be in good order the day of the signing of the
Deeds, and some times they must take some time to get the necessary
documents and cautions for it. When in a hurry, the professional may
forget some very important detail. Of course, this does not mean you
will not be informed of every step in the process, on time. Please,
bear in mind the Lawyer is the first interested on completing the
process quickly and effectively.
The
second and very important document involved in the process is the
private purchase contract. It is important to have access to this
contract (called “Arras”). This contract will objectively
determine all the purchase process. It includes all the terms agreed
between the parties, deadlines, payment schedule, etc … It is
highly recommended to review the contract before it is signed by your
representative. In case you may not to speak Spanish, you should try
to get a copy in your language to be sure of all the contents of the
contract. Normally the Lawyer may provide you with a copy in your
language. Otherwise, there are translators who may write a literal
copy of the contract in your language. Our Firm offers this service
for free.
Once
the contract is signed you only have to wait for the day of the
signing. The Lawyer will collect all the paperwork required by the
Notary in order not to have any the day of the signing of the Deeds
This day of the signing, you will obtain the keys and will be able to
take possession of the property. In this concrete moment is when you
will have to change the ownership of all the supplies (electricity,
water, internet connection …). The next step will be the payment of
the Transfer Tax, which consists of an 8% the price of the property
and finally the registration of the property in the Land Registry.
Expenses
related to the purchase procedure normally are responsibility of the
buyer, except the local Capital Gains Tax that will be paid by the
vendor. From this moment on, and as owners of a property, you must,
annually, pay the Income and Wealth Tax.
At
this point you will be the merited owners of a property on the Costa
del Sol, which will give you a monthly income, a few happy holidays
or even a different life.
For
any questions regarding this issue or any other, please feel free to
contact us or come over to our office (ask for a previous
appointment). We will be happy to give you legal advise of any kind,
with total confidence, and will try to find the most appropriate
solution to your problem.
