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Bag Yourself a BARGAIN at a PROPERTY AUCTION in SPAIN...Here's What You Should Know First!
Oct 29, 2024
It was property specialist Antonio from @Pellicerheredia joining Kal this week in the regular slot: Every other Wednesday from 16:00 CET
Following on from the last webinar, there was a discussion on how you could save THOUSANDS on a Spanish property by buying through an auction. However, it may not be as straightforward as you'd imagine. Watch the video for an explanation of what to look out for.
Antonio also explained about different types of sellers...including underage ones, which may actually be easier for Brits 🤔
Find out more about what the team can offer at www.alicantelawyers.es and be sure to Like 👍 this and Subscribe to our channel if you found it useful.
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0:00
Bay radio International on a Wednesday
0:02
every other Wednesday we talk to the
0:05
alakan lawyers B and R Antonio is with
0:08
us today welcome back good to see you
0:09
again yeah nice to be here uh we're just
0:12
in the midst of talking about elections
0:14
and so on though so we'll move away from
0:16
that and and come to talk about uh
0:18
buying property in Spain we'll look at
0:21
some different types of sellers which is
0:23
quite an interesting subject a little
0:25
bit later on first of all though uh the
0:27
webinar the other day was about a live
0:31
housing auction in Spain how
0:34
straightforward is that then for an xack
0:37
to get involved in well it's not the
0:40
easiest process in the world I have to
0:41
say because they are really not meant
0:43
for them to be accessible no one has
0:45
bothered thinking probably the public
0:47
would like to get into that and make it
0:50
something easy like uh bidding on eBay
0:52
or something like that no it's it can be
0:54
online it can be also you know in person
0:56
but plenty of them are online so you can
0:58
actually beat online if you want to you
1:00
have to be credited as a reasonable
1:02
bidder which is a process by itself can
1:05
be a little bit complicated but the main
1:08
issue that that I see with them is the
1:10
estate the property that you're going to
1:12
get the main Pro is definitely at the
1:15
Burgen you can really get really good
1:17
prices and just really good deals in in
1:20
beating because beats are not based
1:22
really on the price of the property has
1:24
it's what the bank needs to get back
1:26
yeah that's exactly the banks Ed that's
1:29
that's in fact the key of it so in some
1:31
cases they are okay of getting a lower
1:34
amount just because that's probably the
1:37
only money that they going to get out of
1:38
the property and in Spain really you
1:41
cannot have or it's not common to have
1:44
court sales as one would think for
1:46
example let's imagine two two people own
1:48
a property you and I have a property
1:50
together and we you know we're really
1:52
fighting about it so you want to sell it
1:54
but I don't want to so you cannot force
1:56
force me to sell it easily some courts
1:58
will allow it some want but if there's a
2:01
disagreement then it will go into a
2:03
houseing action in a public bidding and
2:06
therefore you will get a fraction of the
2:07
price so it's not a popular among
2:09
amongst homeowners but if you're a
2:11
bargain hunter and you don't mind
2:13
getting a property that maybe have some
2:14
debt or maybe the real estate of the
2:16
property is not as good as you as you
2:18
may expect then yeah so I'm guessing
2:21
that is what most of these properties
2:23
are they are properties where the people
2:25
who own them owe that debt to the bank
2:27
and the bank's recovering yes most of
2:30
the properties are like that are
2:31
repossession by Banks also a really good
2:35
amount are developers that failed so of
2:38
course yes you see these almost finished
2:39
buildings and so on that sort of thing
2:41
yes and those are normally probably the
2:44
best deals but also the riskiest one
2:48
thing is linked to the other as you may
2:49
imagine yeah because maybe all not all
2:52
the paperwork for the for the house is
2:54
in maybe it's not fully registered as
2:56
finished or at all or it may have
2:58
utilities or not maybe some big bills
3:00
behind the uh you know the facade of an
3:03
almost finished building that's right
3:04
how do you get on top of knowing
3:06
everything that's happening with the
3:08
property is there a time frame from when
3:09
they're put up for sale and the auction
3:12
actually happening is it always a
3:13
uniform sort of time period ideally but
3:17
that's not how
3:19
we no there not that's not that's
3:21
absolutely not because that depends on
3:24
the court so for example any given Court
3:27
let's say um Dena number one for example
3:30
will always do it like in in months so
3:33
you know they'll try to keep the pace
3:34
but maybe number two doesn't do that and
3:37
they do it every six months or every
3:38
year or you know and then in number
3:40
three they do it whenever they see like
3:42
it you know they feel like it so where
3:43
do you find out about these potential
3:45
bargin well that's the key you need to
3:50
get Dive Right In get into the world of
3:53
the of the beating under bargen hunting
3:55
and you try and score the websites for
3:58
beaing every day to see if there
3:59
something that you that you know wets
4:01
your appetite and then once you know
4:03
about the property to try and do as much
4:05
D due diligence as you can before it
4:07
comes into you know the bidding actually
4:09
actually starts because there's some
4:11
time from the moment in which the
4:13
bidding is announced and the actual
4:14
bidding so there's time for to do some
4:16
due diligence to try and avoid you know
4:20
deal breakers or really red flags you're
4:22
getting a deal so you'll know we we will
4:24
have some some problems it's like um uh
4:27
um a refrigerator that that you buy
4:30
refurbished you know sure you're taking
4:32
a bit of a risk a little bit but you
4:34
have to measure the risk so that's the
4:36
key okay and is it easy then for say
4:40
expats to get involved in this I mean
4:42
I'm guessing you're going to need some
4:43
Spanish help here in the form of Brokers
4:45
and uh and lawyers yeah yes at least a
4:47
lawyer what can I say of course you
4:49
can you'll need some somebody trusty on
4:52
your side to help you discriminate the
4:56
the real the grain with the real gold to
4:58
to be able to to find that diamond in
5:00
the rough that from the properties that
5:02
you can see that one that well really
5:04
didn't look like that much to you but
5:06
the price was really good but ah it
5:08
turns out that really the depth is not
5:10
that much it's okay just the water is
5:12
disconnected but it has the installation
5:13
is proper and it doesn't own any console
5:15
tax so you know it's fine to buy so of
5:17
course that can be the thing if a
5:19
property is being put up for sale by a
5:21
bank because people defaulted on the
5:22
mortgage say it's likely they defaulted
5:24
on other bills as well of course yes of
5:26
course in in the case of a repossession
5:28
by defaulting of a mortgage you expect
5:30
at least council tax to be owed
5:32
utilities with big depths or
5:34
disconnected and with big depts and so
5:36
on and so forth and maybe someone living
5:38
there like the owner still yeah of
5:40
course and oh right okay CU well again
5:43
you that's another legal process that
5:45
you have to get into then if somebody's
5:47
in the property and and doesn't want to
5:48
leave but then again would you want to
5:50
buy something where somebody was still
5:51
in it yeah it's not common that that
5:53
happens though but it may happen yeah of
5:55
course yeah yeah yeah this this's
5:57
normally there a sar they
6:00
we in our experience they they when they
6:02
get wind that somebody the property for
6:05
public auction maybe they bate to avoid
6:08
because you know while the property is
6:09
in a limbo no yeah if there's no harm
6:12
there's really no crime or what's the
6:14
thinking that that they may have there
6:16
is you know in fact illegal still to
6:18
squat on a property even if the
6:20
ownership is dubious but you know people
6:22
may think that they will not be
6:23
prosecuted for that which in fact is
6:25
true in some cases but once it's clear
6:28
that the the there's going to be
6:29
landlords then you know the the these
6:32
these unwanted tenants will like to skip
6:35
town is there a website you can go to to
6:37
find out upcoming uh properties perhaps
6:40
in that way Corporate Court basis so it
6:43
does yeah so it does depend but yeah
6:45
there is there is a place I would I
6:47
could suggest any of our listeners that
6:48
interested in it to do a little bit of a
6:51
Google Search and I'm sure they'll find
6:52
it okay and is it something that um p
6:56
and Heria get involved in on a regular
6:58
basis that's buying by auction
7:00
yes in fact there is not only that but
7:02
also hunting properties that are
7:04
problematic because they have debt or uh
7:07
and buying the the debt from the from
7:10
the bank or from the who whoever is is
7:13
having and then trying to reconcile that
7:15
an ownership for example before a a
7:17
property gets into into a public auction
7:21
there are normally as we we said
7:22
somebody that defaulted on a mortgage or
7:24
in some depth and the there was a a
7:26
court process that you know the last
7:29
step is the owner is dispossessed on the
7:31
property and that one gets into into
7:33
this public auction that we're talking
7:34
about but before that you can intervene
7:37
the process being in the court or not
7:39
and offer the Creditor yes to buy yes to
7:43
settle the dept for the deptor so you
7:45
buy the debt out normally on cents on
7:47
the on the pound to say so for a
7:50
fraction of the cost and then if you do
7:52
that properly you contact the owner and
7:55
you tell them well how
7:57
about you just leave on pardon the debt
8:00
for you and you just leave the property
8:02
and will consider it even so you if you
8:05
reach a deal and the property is in
8:06
proper condition then you got that also
8:08
a property for a fraction of the price
8:10
okay so those things can happen but as I
8:12
mentioned then you do need uh some help
8:14
in settling those debts and and getting
8:17
everything done legally because as we
8:19
know there can be loopholes there can be
8:20
diff there can be difficulties oh yes of
8:22
course particularly particularly not in
8:25
indic case on the public biding not in
8:27
in ownership regards you'll become full
8:30
owner of the property for sure what
8:31
you'll have is maybe loose threats so
8:34
some points that were not correctly
8:36
addressed or really they were pending
8:37
from from the previous owners and that
8:39
you have now to tend normally depths of
8:41
economic nature or you know the house to
8:43
be in a state of disrepair some degree
8:45
yeah or or you want some work to be
8:47
finished for instance perhaps yeah of
8:48
course of course so yeah though all that
8:51
requires due diligence and inspection by
8:53
an architect as well in order for you to
8:55
be sure that what you're getting is
8:56
really a bargain for the price but you
8:58
have to have that sort of the money
9:00
available I was going to say the cash in
9:02
hand but as you pointed out when we were
9:04
talking about this we're not talking
9:05
about a suitcase full of money but we're
9:07
just talking about having the actual
9:08
Capital yes that's right because on a on
9:11
an on an auction you cannot get a
9:12
mortgage on the property you have to get
9:15
all the kind of loan or if not you have
9:17
to do have the cash readily available MH
9:20
all right we'll talk a bit more because
9:22
um we heard quite a lot in the past
9:24
about the bad Bank um which is sareb uh
9:28
we'll we explain a little bit about
9:29
about that and and talk about the
9:30
properties that um it may still have
9:32
available because there's another way
9:33
isn't it of getting onto the market um
9:35
and perhaps picking up a bargain and T
9:37
is here from p and Heria with us today
9:40
looking at auctions and for houses in
9:43
Spain but also now uh the sarb which was
9:46
known as the bad Bank following the
9:48
financial crisis um but effectively it
9:51
holds quite a lot of properties doesn't
9:53
it and the idea was that basically uh
9:57
they were bought out all of these Banks
9:59
it was um BFA bank here Catalonia Bank
10:03
um Bank of galgo and Bank of Valencia
10:06
wasn't it then basically all the assets
10:08
the properties that were there that
10:09
people had defaulted on and so on were
10:11
meant to be sold off to um to help the
10:13
Spanish economy at least that's the work
10:15
that sarb says that it's doing every day
10:18
to help strengthen the real estate and
10:20
financial sector in Spain um and and
10:24
these auctions are continuing they still
10:25
seem to hold lots and lots of property
10:27
since 2012 when it was set up I think
10:29
they even hold more than they
10:31
did well I don't know about that but
10:34
yeah that's true that's exactly what you
10:35
said that's exactly true that's the
10:36
origin of the of the banalo the bat bank
10:40
and the idea was for them to hold all
10:42
these toxic assets these properties that
10:44
were defaulted really defaulted and try
10:46
to sell them at a price normally also a
10:48
little bit of a burgain you can really
10:50
find yeah in fact it's quite related to
10:52
what we were talking about in order of
10:55
of risk and reward probably the the S is
10:58
on the mild side so less risk that's
11:02
right and less reward the prices are
11:03
normally good for S properties not for
11:05
all of them but you can still find good
11:07
prices I had a and this is a real
11:10
example I had a client buying a whole
11:12
building in morida for apartments and
11:14
for parking spaces really Prime real
11:17
estate location the on the paperwork all
11:20
the properties were okay so all the
11:21
apartments were really good they had
11:24
almost no dep whatsoever and the price
11:26
was about 70 75% of the price so you
11:30
still get a still a good bu that's right
11:32
25 30% discount on the price they need a
11:34
little bit of refurbishing and then you
11:36
could sell them you know I think quite
11:38
at a profit which I think is the idea
11:39
that the client had so still there still
11:42
good deals to be F to be found by Sev
11:44
the problem for experts is money
11:48
laundering So when you buy a property of
11:51
a private citizen for example if you
11:53
sell a property to me or if you prefer
11:55
to go the other way if I sell a property
11:57
to you m then in this case I my Mony
12:01
laundering to you is like would be
12:03
exactly this one do you have the money
12:05
yes then perfect the house is yours and
12:08
that's exactly how much money laundering
12:09
a private citizen is required to do but
12:11
if the seller is not a private citizen
12:13
he a developer or even more it's Sev the
12:16
amount of money laundering that they
12:17
need to do is higher there is a higher
12:19
standard for them by law uh that means
12:22
that Sev will have a special compliance
12:25
Department in which they will check on
12:27
the financials of the potential B
12:29
for them to accept the beat so for for
12:32
example if you're buying a €2 200,000
12:34
apartment for example that's and then
12:36
you'll pay a reservation of
12:38
€3,000 and they would they won't ask you
12:40
to pay anything else until you go to the
12:42
notary so you won't pay the 10% but they
12:45
will not approve your Beating until you
12:47
pass money laundering if you are Spanish
12:49
and you're buying with a mortgage as
12:51
most Spanish people do passing moning is
12:54
not really that difficult most of the
12:56
money 80% of it will be provided by the
12:58
bank and normally the remaining 20% you
13:00
can argue that it's accountable
13:02
basically yeah it's easily accountable
13:04
you see is you can really really easily
13:06
prove where the money comes from well
13:08
this is my my Renta my my tax
13:11
declaration and this is the money from
13:13
the bank that they have preapproved here
13:14
so that's how I'm going to pay for that
13:16
however if you're an exper maybe you are
13:18
not buying with a mortgage and you're
13:19
buying cash and you got the money
13:21
because you know your dear Aunt H died
13:24
and gives you a a small portion of on
13:26
The Inheritance also you've got a
13:28
pension from the state or you've got a
13:30
salary from a work that you're doing but
13:32
you had some shares that you sold and
13:34
with those resources you are financing
13:36
the purchase you're not going to pass
13:38
money laundering with s with that
13:39
there's what so too many incalculable
13:41
for them that's right and the amount of
13:43
documentation they're going to request
13:44
from you is going to be well Madness is
13:48
going Madness is the is the description
13:50
however we expect paperwork anyway but
13:52
yeah of course of course that's right
13:54
that's right the the thing about this is
13:57
that Sev makes it so
13:59
sometimes provided that the buyer has
14:01
the money and they have accepted the
14:02
price makes so difficult for the buyer
14:04
to actually buy it because they make
14:06
them jump through you know over her yeah
14:09
but why would they do that I mean the
14:10
whole the job is to get rid of and sell
14:12
off all of this property surely yeah you
14:14
see the I I think I thought that's what
14:17
it was meant to be there for that's
14:18
meant to be there for that's exactly
14:21
exactly but that's not what they here
14:22
for they're they're there to milk the
14:24
state out of money they are meant to
14:26
make more money for the state that's
14:27
right it does say that at the beginning
14:28
as well let tell you that again yeah of
14:30
course that's the motel I guess but
14:32
that's not how it works they they their
14:34
business they're not a real estate H
14:37
company they are Bankers H trying to
14:41
handle real estate anyway so the the the
14:44
money laundering prevention is quite the
14:46
difficult hurdle to jump over and you
14:48
need a let's say an interpreter or a
14:51
translator in this case let's be honest
14:53
a lawyer to try and um advise on the
14:57
client on the best way to present the
14:59
documentation and remind Ser that other
15:01
countries have other ways of earning
15:03
money and having money that are
15:04
perfectly legitimate and you know this
15:07
not running guns or you know or or or
15:10
selling drugs in order to finance the
15:12
purchase of a property and with that a
15:15
little bit of pushing One Way pushing
15:17
the other way then you can pass M under
15:19
ring sooner or later in in P
15:21
particularly well not me but also my
15:23
colleagues are quite experts on that you
15:25
are the property expert aren't you of
15:27
course Whisper if you want there you are
15:30
yeah just a just a a short check though
15:33
on just the valencian community in the
15:36
Valencia Area 3 and a half thousand
15:39
units for sale that's just um you know
15:42
properties that people can buy to live
15:44
in lots of other types of property and
15:46
even plots available um and I mean over
15:50
that's overall there there are there are
15:52
quite a lot of properties uh involved in
15:55
sarb so it is a way that you can
15:57
possibly do it as long as you don't see
15:59
if you as you were saying don't have
16:00
lots of different income from lots of
16:01
different areas that you're going to
16:03
fund that property with which is where
16:05
s's going to go no we don't like it so
16:08
up to about
16:09
41,000 uh properties for sale to live in
16:13
uh uh available overall um and and
16:16
plenty of other options there but
16:18
certainly a way to invest as well as
16:20
long as you can prove that your your
16:21
money's not from a number of different
16:23
areas excellent and also a good way to
16:25
get a property refurbish it and sell it
16:27
indeed indeed that s ARB which is known
16:30
as the bad bank but basically where all
16:32
of these properties that uh where money
16:35
was owed were were put uh to basically
16:38
make money I suppose for uh Spain after
16:41
the financial crisis but there are still
16:43
a lot of properties there so another
16:44
good way to go uh along with the
16:46
auctions that we were talking about
16:47
before um now Antonio you came into the
16:51
studio today talking about uh different
16:54
types of sellers the different types of
16:56
people who uh you purchase property from
16:59
I hadn't really considered this as being
17:00
something you could break down and okay
17:02
people want to move they want to sell
17:04
but obviously yeah if you think about it
17:06
there there are different reasons for
17:08
people selling and different types of
17:09
people selling of course and even some
17:11
that are not even people right indeed
17:13
right because you can have also the bad
17:15
Bank the bad bank that's right or a
17:17
company to sell or just a coalition of
17:19
ownership or the state of someone
17:21
deceased there's all kinds of Sellers as
17:23
well and yes it's worth exploring in
17:26
this our Endeavor to fully explain how a
17:29
conveyance Works in Spain I think that's
17:31
uh quite an interesting topic and the
17:33
reason why I thought about this is
17:35
precisely that this week one of the new
17:37
files that came into my desk had a
17:40
contract signed by the sellers two
17:42
Sellers and then another two signing
17:44
under representation of a third so I
17:46
requested from the agent well that's
17:48
fine that you know you have somebody
17:49
signing on behalf of somebody else
17:51
provide me please please with a proof
17:53
the board of attorney and say no no no
17:55
it's the daughter the one that's selling
17:57
like yeah well anyway still if it's your
17:59
daughter that went to selling and you as
18:01
as the father the mother or the tutor
18:03
you are signing on behalf of them you
18:05
still need a power of attorney no no no
18:07
it's an
18:08
underage ah and that's a different thing
18:10
you see so that comes to the next Point
18:13
can an underage person own a property
18:16
what yeah of course they can anyone can
18:18
own a property even someone that has not
18:20
really been born yet can own a property
18:23
in name I guess in name obviously they
18:24
cannot use it they don't have use for
18:26
property yet yes they can own it in name
18:28
because in in Spain the law says that an
18:31
underage person can have any rights that
18:35
are beneficial to them and owning a
18:37
property despite having to pay taxes is
18:39
is still something that overall is
18:40
beneficial so yes they can own it what
18:43
they cannot do it is sell it freely in
18:45
order for a person for an under person
18:48
to be able to sell a property you need
18:49
two things first permission from your
18:51
parents or tutors if you don't have them
18:54
and second a court order permission from
18:57
the judge and that's the the the key
19:00
point so in this file I was talking
19:02
about the next thing I told the agent is
19:04
like perfect I'm fine you don't need a
19:06
power of attorney to sign a contract on
19:08
the name of your of your daughter or
19:10
somebody has to have attorney of course
19:12
you don't need it in this case because
19:13
they're underage and they cannot sign a
19:15
board of attorney just with you know the
19:17
family book or or or or best certificate
19:19
to prove that's your daughter or your
19:20
son it's enough but you know for the
19:23
execution of the deal at the noty I need
19:25
a court order if there is Spanish but if
19:28
they're not Spanish that's not the the
19:30
same rule apply to everyone okay wow
19:33
okay they just got a little bit more
19:34
difficult for experts you see no in fact
19:36
for an exper you want to say it's easier
19:38
it's easier no just for this one time
19:42
so don't get cocky but
19:45
yeah I found something at last I yeah
19:48
yeah yeah yeah I had a file this is also
19:50
a good example A couple of years ago in
19:51
which the an expert a British person
19:55
passed away and he really didn't decide
19:57
on who wanted to who who did he want to
20:00
beit the property to so he gave it to
20:02
everyone and they were 11 s and amongst
20:06
these 11 s there were four that were
20:07
underage and everyone was was British
20:10
and they were in fact all of them living
20:11
back in the UK so obviously as soon as
20:13
they inherit you know the proper went
20:15
through what they wanted to do is sell
20:16
the property they didn't want to keep it
20:18
did they just wanted the money which I
20:20
understand obviously and to share the
20:21
property with 11 people there A lot of
20:23
people to share it with anyway so
20:25
because four of them were
20:27
underrage in the okay there is no need
20:30
for a court order so a parent can freely
20:32
sell the property that belongs to the
20:34
child under their own fatherhood claim
20:37
just because they are the the father or
20:38
the mother they can just do it so with a
20:40
way simpler paperwork that we manage
20:43
without court involved we we manage to
20:45
sell the property easily and
20:47
successfully so yes at least in the case
20:49
of of British people it's easier to sell
20:51
a property if you are if you're underage
20:53
because just with your parents involved
20:54
that's enough I said at the outset here
20:57
Antonio I was just kind of thinking
20:58
generally it's the same kind of people
21:00
that go through these sort of
21:00
transactions every day but obviously
21:02
when you think about it a little bit
21:03
more of course it isn't isn't um so you
21:06
you get different scenarios and
21:08
different situations when it comes to uh
21:10
who you're buying property from yeah
21:12
that's exactly right well as you said
21:14
from the very beginning when you think
21:15
about different types of sellers you
21:16
just think of different type of people
21:18
but well that's not what the point is
21:21
about is like there are different
21:23
situations and and different nature to
21:25
the to the person or or entity that is
21:28
selling the to you not only the underage
21:30
which is probably the the the biggest
21:32
example of different kind of seller
21:34
that's only cured by age the the next
21:37
type that's also rather common it's a
21:40
company of course you may you may no s
21:42
for example say entity yeah yes which so
21:45
technically not people guess they are
21:47
from a legal point of view just for the
21:48
sake of ownership and such they have
21:50
some rights and the biggest point about
21:53
a company is that when you do the due
21:55
diligence you not only need to do the
21:57
due diligence on the property but also
21:58
on the company itself because when a
22:00
company sells the taxes that you pay and
22:02
everything that's exactly the same
22:04
that's related to the property not to
22:05
the company itself but the very basic
22:07
nature of the company makes it slightly
22:09
different for example you have to make
22:11
sure if the company at the asset that
22:14
the company has is the main asset of the
22:17
company or if it's more than 25% of the
22:19
overall assets I see right if that is
22:22
the case you need a special agreement by
22:23
the by the company's board in order for
22:25
them to be able to sell it for you which
22:27
comes to the next point when you buy the
22:29
property out of a private citizen a
22:30
normal person you know like you or me
22:33
then when you when you sign a contract
22:34
with them you just need them you know to
22:36
present their ID or the passport and
22:37
then you'll know yeah of course there
22:39
appears on the paperwork this is the guy
22:41
so yeah this is Antonio he sign the
22:43
property to me so it all tracks but the
22:45
company cannot go physically and sign
22:46
anything somebody has to do it on their
22:48
behalf so they need to be authorized
22:50
somehow in order to be able to do it so
22:52
you need to check the paperwork to make
22:55
sure that the person that's signing the
22:56
agreement on behalf of the company is
22:58
the administrator of the company or
23:00
someone with a Bo of attorney enough for
23:03
to be able to do that but also if it's
23:04
the administrator if he needs permission
23:06
from somebody else and if it needs uh an
23:09
agreement from the board in order to
23:11
sell the the company so as you see as
23:13
you see it makes it a little bit more
23:16
difficult not too much yeah always more
23:19
paperwork one way one way or the other
23:21
but that's an extra layer of of thee
23:23
diligence particularly also not Al not
23:26
only to make sure that the company is
23:30
actually selling the property to you
23:31
because the person coming to sign on the
23:33
company's behalf is authorized to do so
23:35
but also that the property is not
23:37
affected by the company debts so you
23:40
need to check a little bit of history of
23:41
the company at the at the Chamber of
23:43
Commerce the registro mercan in order to
23:46
find out how you know how the money
23:49
situation is if there's any depths if
23:51
there been too many changes on the
23:53
company's registry and so on and so
23:54
forth of course the horror behind that
23:56
one could be that actually you might
23:57
lose the prop property later because
23:59
there are debts on it yeah yeah or you
24:02
cannot complete the purchase or that the
24:04
person that signed on behalf of the
24:05
company really did not have the right to
24:06
sign on behalf of the company and they
24:08
course that never happens went away with
24:09
the money well you know it never happens
24:12
to me but I guess I guess it does you're
24:14
the property lawyer that's why well
24:16
thank you yeah yeah yeah yeah well you
24:18
know but it's a possibility these things
24:20
you know these are things that can
24:22
happen people do try that sort of yeah
24:24
it's not common but you know it doesn't
24:26
have to be common you just have to cut
24:27
it once and it's it's going to be more
24:29
than enough for you so yeah yeah of
24:31
course of course that you have to be
24:32
careful about it so besides underr and
24:34
and companies you can also have people
24:37
that that are not fully owners not full
24:39
owners of the property you know a normal
24:41
person that can be the simplest
24:43
explanation for example somebody that
24:45
owns the property alongside with
24:47
somebody else part ownership that's
24:49
right two owners like a married couple
24:51
or two friends or whoever in that case
24:53
obviously you need the agreement and
24:55
permission of both of them in order to
24:57
be able to buy so you have to be very
24:59
careful when you sign the reservation
25:00
the reservation is presented the
25:01
contract is presented to you in which
25:03
you make the payment that you are in
25:06
fact getting the permission from
25:08
everyone that owns the property to sell
25:10
it to you at the agreed price and with
25:11
the agreed conditions if not if one of
25:13
them goes on the back of the other and
25:15
tries to sell it they're not going to be
25:17
able to do it because you need the
25:19
permission at the not you need everybody
25:20
to be there everybody that owns the
25:22
property to be there in order for you to
25:24
be able to to to buy it that I know it's
25:27
a little bit like basic but but still it
25:29
sounds in the past like situations where
25:31
people actually have tried to sell
25:32
properties even though somebody else
25:34
does actually own part of it that's
25:36
right yes it does happen not too often
25:39
because normally stopped these days more
25:41
yeah I guess so because you know even
25:43
even the the very best of the basic
25:46
agents will know at least you know
25:48
they'll check the deed or they're not as
25:49
simply and they'll know there's more
25:51
than one owner what you can have is a
25:54
dead owner so somebody that owns a
25:56
property or or party and it's dead this
25:58
can be a difficulty in Spain I guess you
26:00
know we have this that's not I guess
26:02
it's something for another day to talk
26:03
about but the is a difficult situation
26:06
obviously then there of course what you
26:08
can have is probably let's let's imagine
26:10
a marry a couple one of them passed away
26:12
and the other one as well exactly this
26:14
why these guys on the ditch so let's get
26:16
rid of the of the property but the
26:18
problem is it's not that easy you need
26:20
to do the profit first even if the
26:22
deceased didn't fully own the property
26:25
and only had the right of use and
26:26
enjoyment or other
26:28
dece inheritors I'm sure would have to
26:30
be involved if there are any it's it's
26:33
well we're going to say it again it's
26:34
more paperwork yeah more paperwork of
26:36
course as you said this is a full topic
26:38
it's a full kind of worms bio itself and
26:40
would require a special program just for
26:42
that but yeah it's another example so as
26:45
you can see when you look to buy a
26:47
property not only you have to look you
26:48
know that if you like it or not of
26:50
course and if the price range is
26:52
something that you think it it's worth
26:53
it and such and the condition that the
26:55
property is in but also on the nature of
26:57
the seller itself something quite
26:59
important to make sure that the person
27:01
that wants to sell the property to you
27:03
is able to do it and they authorize and
27:06
they don't require signing of of anyone
27:09
else the last example that big example
27:11
that I want to give is the cell owner
27:14
the the false Soul owner you you on the
27:17
not simp or the person that presents
27:19
themselves is the soul owner of the
27:20
property only only they own the property
27:23
so far so good and they want to sell it
27:25
to you so you are you're very glad about
27:27
it and they tell you they are American
27:29
they are from Texas or they are from
27:31
Washington but the state not DC and you
27:33
say B perfect I have the money here and
27:36
I can pay it to you in Euro so it's
27:38
going to be fine anyway and then you go
27:39
to the noty and the noty says I'm very
27:42
sorry but you need the signature of the
27:45
wife or of the husband of this person in
27:48
order for them to be able to sell the
27:49
property to you or if they're Spanish if
27:52
the seller is a Spanish person you will
27:53
need it anyway that is because one
27:57
person can own a property just on their
28:00
own but still be bound by the marriage
28:03
economical agreement that they have this
28:06
does not happen in the UK so this can be
28:09
I didn't realize there was that
28:10
discrepancy that's right in the UK when
28:12
you get married the assets are separate
28:15
so if you are married to somebody and
28:18
you buy a property on your own using
28:19
your own funds it's just on your name
28:21
it's just yours to buy or sell however
28:23
you see fit but this does not happen
28:25
here in Spain with Spanish people so for
28:27
example in my case I'm married in
28:29
ganeles which is the default system that
28:31
means that everything that I'm I'm
28:34
buying even if I if I only use my own
28:36
fans will be also ER owned by my wife
28:40
not on the deed but in order for me to
28:43
be able to sell it I will need my wife's
28:45
permission and of course he will be
28:47
entitled to to her share if she wants to
28:49
or not so it may not say so it may not
28:52
say so may be one person on the
28:54
paperwork well that doesn't necessarily
28:56
mean you only need one signature that's
28:58
right you have to be you have to make
28:59
sure what kind of marriage agreement the
29:01
seller has as well all reason more for
29:04
making sure you'd have the right um
29:06
representation um and Antonio is one of
29:10
the property experts if not the main
29:12
property experts there's more that one's
29:14
more I know there are more and Heredia
29:17
alakan lawyers. es if you're interested
29:20
in anything we've been talking about
29:21
today or anything to do uh with things
29:24
legal in Spain and we catch up every
29:28
couple of weeks for a chat and you'll
29:30
find more on our YouTube channel and
29:33
indeed on our Facebook page and our
29:35
website uh thank you very much indeed
29:37
good to talk to you again take care
29:39
likewise shame that the other guys went
29:40
to I Bea without you though right oh
29:42
yeah I'm sure they're having a the worst
29:44
time ever
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