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Repossessed properties in Spain. Conveyance and practical aspects

TLACORP lawyers  are experts in conveyance, and real estate, with wide experience in Spanish repossessions. This is an activity that we have developed during the recent years with high levels of efficacy and success to our clients.

As you could see in this special section of repossessed properties, the decision to buy this kind of properties is adequate now for commercial reasons, but must be carefully considered from the strict legal point of view.

The situation of the properties repossessed by Spanish Banks must be studied in the proper way, in order to guaranty to investors the right ownership and use of the properties acquired. The reason of this is due to the fact that banks, when they take possession of the properties, they do not pay attention to the legal aspects from such properties.

The way in which banks takes the possessions of this properties makes them not to obtain all the necessary documents, and to get all in order when these properties are sold in the market. Usually, the repossessed owner does not provide all the legal documents to banks on the repossession process. Is quite common, in fact, that debtors even hide information about their properties to the banks when properties are repossessed.

For example, water and electric are disconnected, and contracts are lost. Reconnecting electric and water is necessary to obtain the contracts from the supplying companies, with expenses of reconnection, and extra expenses like re-wiring, electrician and plumbers certificates etc.

The process is very simple, the mortgage debt is not paid, and they take the property, without paying attention in the legal and real conditions of the property.

In other words : Banks do not make the proper searches before they take the ownership of the property.

It means that a high number of legal problems from the previous owners are passed, with the property, to the new ones.

Just see what are the main common problems found in repossessed properties:

A)  Legal documents:

– Is quite common find that the deeds of the property are not updated, or, there are not constructions or modifications of the property considered in the deeds.

– In other occasions, there are legal documents missing, or difficult to find. The most important: Building licenses, and Certificate of Habitation.

– There may be discrepancies in the description of the property in the different registries, that the bank has not sorted.

B) Debts and fines:

– There can be taxes, debts and fines which could affect the property and that, even the banks are not aware of them. Debts like community of owners, water or electric. Taxes like council tax, garbage collection, etc. Fines from the local Town Hall for a non authorized extension on the property ( a pool, a garage, a terrace covering or roof), etc.

– And, even worse, there may be orders of demolition unknown for the banks which can be at the local authorities.

C) Water and electric connections:

Water and electric use to be disconnected, and, in the majority of the cases, contracts are lost. To reconnect electric and water is necessary to obtain the contracts from the supplying companies, with expenses of reconnection, and extra expenses like re-wiring, electrician and plumbers certificates etc. In other cases, the supplying companies request legal documents from the property to reconnecting it, like the certificate of habitation, and the bank, simply, does not know where is it, and, even worse, if there is one.

Due to the fact that repossessed properties are commercially specially interesting due to their special prices, their legal aspects must be  specially considered in the earliest steps of the process. It will help investors to identify, from the beginning, the eventual problems of the property, evaluating the additional expenses to add to the price, and to balance the final decision to buy.

As specialists in conveyance, and after the intermediation in hundreds of bank repossessions in the previous years, we know perfectly the way in which banks have completed the repossession process, and the way in which properties are left in their database waiting for a new buyer.

Our experience is, then, the key of success in the acquisition of repossessed properties.

Our services would start making a previous legal checking of the property, the land, and the construction of the property (checking the legal and the administrative situation of the estate). For this, we apply for the information about the property in the Town Hall where the property is placed, talking to architects and inspectors of the area.

The reason of this is to obtain an exact legal situation of the property for construction, licenses, building permits, etc. With this, we will guaranty our clients that there will not be any actions, like fines, demolition applications, etc., in the public institutions regarding any eventual illegal construction, or work over the building. Please, pay attention to the fact that banks they do not to check this point when taking the ownership of the property.

 Purchase of a property from a bank is a very serious investment. It is compulsory then to know exactly the different aspects of the property, what we call: The History of the property.

Knowing from the beginning how the property was built, how it is considered now, and how it will be in the future with the eventual developments in the area will make secure the high efforts and the investments derived from the acquisition of the property. Only specialist in properties, with expertise acknowledge of the area, can confirm to you this information to give you completely peace of mind.

We are a company expert in construction and real estate with more than 10 years experience in the area. Our clients, they have bought their properties fropm banks  and enjoyed them without problems for years.

 Once we complete our searches, we will check with the Notary that the property is registered in the right way, assuring you the right ownership. Also, we will proceed with the preparation of the paperwork to be signed at the notary on completion, completing also the registration of the property on your name, and changing the water and electric supplying contracts into your name after the completion. Besides of this, we will calculate, and pay and organize the payments of all the expenses and taxes derived from this transaction.

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