When you are about to finalize a property purchase your lawyer will draft a document that will list all the agreements of the sale. Read this carefully. Once you sign it you will become legally bound to follow all the items in the contract. It is best to read it well as this is the last time you can raise any concerns,

The first thing to look at is the costs. This doesn’t just include the final price of the property but who will shoulder the various fees involved in the transfer of the title. These include Notary fees, Land Registry fees and the Plusvalía Tax. Normally the vendor will wash his hands of all fees and impose all of them on the buyer. But you can save money by negotiating that some fees be shared.

You should also make an inventory of what is included in the sale outside of the property itself. This can mean certain house fixtures or property enhancements such as fences or water tanks. If they’re not in the contract the seller can dismantle them. Don’t rely on verbal agreements and don’t assume anything.

Look at the description of the property as well. There are some sellers who will try to cheat you by giving you the deed to another property. You may think you’re getting a discount but what’s happening is that he’s selling you a property that nobody wants. And when you complain later, it’s too late. The law looks at the deed and it is hard to legally prove that you were “told” about another property.
So closely read the details, location, how many floors it has, how many rooms, and how large the rooms are.

You should also discuss how the deposit will be handled, who holds it, and what steps you will take to guarantee its safekeeping. The most prudent choice would be to place the deposit n financially sound and very well respected agency. For example you can put it in a secure bank like the clients account of the lawyer of the vendor, since the lawyers have very clearly structured rules about how to oversee the monies given to them for custody.

One of the advantages of buying property in Costa del Sol is that you can easily recoup your investment by renting it out to tourists. However, you should take proper precautions when choosing renters. You have to select tenants who will respect your rules, and make sure your property is well maintained. They should also be conscientious about payments and, if they accidentally damage the property, to be ethical enough to pay for it.

The best scenario of course is that the renter will do these things because he has a good moral character. But why leave it to chance? By creating a contract and a solid system of rules you will at least protect yourself legally. If they skip payments, or damage the properties, you can make a claim.

There are two kinds of rental contracts. The short term rental contact is called arrienda de temporada. The long term contract is called arrienda de vivienda. It’s best to get lawyer who can create one for you and make two versions: English and Spanish. You can actually get blank copies of these contracts at some stores but they are unfortunately in Spanish. What’s the point of getting a contract that you don’t understand?

But what kind of contract should you get? It is in your best interests to limit the contract to a short term agreement. This covers situations where your apartment or home is rented for anything from one week to several months. Under this contract the tenant can’t extend the contract without your consent. This lets you hold the right to offer the place to another person or to even use the property yourself, if you wish to go on vacation.. The long term contract can last for up to five years, depending on whether or not the tenant wishes to extend.

Aside from a contract you should make an inventory of everything in your property including art work or décor, the sofas, even the special lamps. Thus there’s chance for a tenant to claim that something is his. If there is any dispute it’s on paper and if he tries to take it then you can charge him with theft!

You should also have a policy of having a deposit so that if there is any damage to the property or he skips payments then you can cover it. The tenant will get his deposit back if there were no problems of that sort.

Buying a vacation home can seem overwhelming. There are just so many things to think about, so many issues to wade through. But it doesn’t have to be complicated.

At least, not when you have experts to help you navigate the problems and even find ways of avert them! The first step you should take before buying property is to get a lawyer who specializes in real estate. So when you put in an offer, he’s by your side. He can help you look at the contract and review whether or not it protects your interests. He can tell you whether or not it’s a good deal—at least, legally. He can warn you of legal pitfalls and advise you of any decision’s legal implications.

Many people put themselves at risk by signing a contract without having a lawyer around. Just ask yourself if you would sign a paper and commit yourself in the same way if you were in your home country. Probably not—and yet so many people do it when they’re buying a property abroad, where the laws are different and even the language is different. Bottom line – don’t sign on the bottom line unless you know exactly what you are doing and you have a legal representative.

To buy a home it being a holiday home or a permanent home is a big financial commitment. Unfortunately it is not uncommon that things go wrong in the process which so easily could have been avoided with some planning.

Aside from finding a good lawyer, get yourself a good agent. Someone you can trust, someone who knows what he’s doing, and understands the real estate situation in the country you are buying. This is especially important if you are buying a property off plan. An off plan is a property which is not yet built and which may not even have planning permission in place.

Another person you should get is a mortgage broker. When you have your loan pre-approved you have more negotiating power with the buyer.