Why Checking for Outstanding Debts is Critical When Buying a Spanish Property
When buying a property in Spain, it is essential to check for any outstanding debts as they can have a significant impact on the ownership and use of the property. Neglecting to do so can result in financial loss, legal troubles and stress. In this article, we will explain why it is crucial to check for debts and how to do this with the help of a professional agent.
Reasons to Check for Outstanding Debts:
- Unpaid Taxes: The Spanish government may claim the property if taxes have not been paid.
- Community Fees: Community fees, such as maintenance and cleaning expenses, must be paid in full before purchasing a property.
- Mortgages: An outstanding mortgage on the property may transfer to the new owner.
- Litigation: The property may be involved in legal proceedings, which could prevent the transfer of ownership.
Why Hire a Professional Agent:
- Expertise: A professional agent has the knowledge and expertise to perform a thorough check for outstanding debts and will do so before marketing a property.
- Access to Information: Professional agents have access to databases and other resources that can help them determine if there are any outstanding debts on the property.
- Peace of Mind: Hiring a professional agent can give you peace of mind, knowing that a comprehensive check has been performed and any debts have been addressed before the property is advertised for sale.
How to Check for Outstanding Debts:
- Obtain a Copy of the Nota Simple: The nota simple, will list any debts on the property. A professional agent will always have this available before advertising a property for sale.
- Check with the Town Hall: The town hall can provide information on any outstanding taxes or community fees.
- Work with a Professional Agent: A professional agent can perform all of the steps above and provide you with a comprehensive report on the property’s debts. This will be available before you consider making and offer for the property.
In conclusion, checking for outstanding debts is an important step in the process of purchasing a property in Spain. Working with a professional agent can ensure that this process is carried out thoroughly and efficiently, giving you peace of mind and protecting your financial investment. A good professional agent will already have done that before they start marketing a property, If the agent cannot show you a copy of the Nota Simple, then avoid them at all costs as they have not even done the basic legal checks and would be happy for you to commit to a purchase without even knowing the basic information!!
Overall this is one of the most important checks that should be carried out. All professional agents will do this before marketing a property, but unfortunately due to the lack of regulation around real estate in Spain, many will not. Be very wary of dealing with any agent who is unable to provide this information for any property that they are marketing.
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