statistics of spain
Argentina vs Germany 0-4 (89_)
Agents are as keen as anyone to tell their clients to make sure they carry out the appropriate checks on any property they intend to buy. Alongside the use of an independent lawyer to check title deeds and contracts, Miles Beacroft of Costa de la Luz specialist Titan Properties, recommends buyers look carefully at their agent.
All of this does not mean it is dangerous to buy property in Spain - just that buyers have to take care to carry out the same checks and balances as they would on buying a property in the UK. So how do you stay safe in Spain?
It is not always large-scale corruption that falls foul of the planning laws - individual properties have been built without full planning permission being granted, or developers have seen fit to build beyond the remit of the planning permission that they have obtained. Another example is developers building on rural land that has not yet been reclassified as urban, allowing residential occupation. Therefore, when permission is not granted, buyers are left with a shining new property that it is illegal to live in.
"Go to a qualified, local agent who can show you a full portfolio; don't get trapped by unskilled, unprofessional ex-pats who have limited access to stock. Also, try to find an agent who not only works, but also lives in the area - that way they won't be in the habit of running off or have the ability to hide. Pick an agent who focuses on house sales and not everything from furniture to laying patios. If you have an agent who focuses completely on properties, they should have a better advisory and consulting service. After all, it will be easy to find a sofa later!"
The main point here is that buying a property in Spain does not have to be any more difficult or risky than it is buying in the UK, so long as buyers make sure they research, they are realistic, and they take independent legal advice. Without wanting to appear too optimistic, there is also the possibility that the property market may soon be on the up again following a difficult period of stagnating growth. Figures from the Spanish National Statistics Office (NSI) have shown that the number of property transfers in April rose by two and a half per cent compared to the same time last year, and more than 19 per cent on March this year. While this doesn't constitute the beginning of a new property boom in Spain, it will give hope to those who were starting to believe Spain had had its day in the sun. With careful research and checking, buying property in Spain will give you plenty of happy days in the sun.
Then in 2007 the announcement came that the authorities would be enforcing the law stringently, and had the power to apply it retrospectively to properties that were built after 1988. Again, no-one particularly expected the retrospective law to make a huge difference to those homes that had already been built and were being occupied in good faith by their owners. The shock came in January this year when Len and Helen Prior became the first British owners to be caught up in the controversy when their £350,000 villa in Almeria was demolished with only hours notice.
To date, it is estimated that more then 650 properties have been demolished this year in enforcing the planning laws. According to overseas legal company, The International Law Partnership, any property in contravention of the ley de costas that came onto the market should have been flagged by a competent independent lawyer at the time of buying.
Legal advice on Spanish property laws is the key to avoiding the majority of the planning issues that come up in Spain, and it is the area where people all-too-often cut corners. Obtaining independent, expert advice on the legalities of your purchase is absolutely essential, and most of the problems detailed above would have been uncovered in the normal course of checks and searches from an independent lawyer. Even when it is not possible for a lawyer to predict the precise outcome of a situation, for example whether a property will be subject to Valencia's Land Grab laws, they will be able to tell buyers if there is a significant risk of it happening.
Paul Owen, chief executive of the Association of International Property Professionals (AIPP) has the following advice for property buyers in Spain: "Before purchasing, a buyer should always take precautions to minimise their risk. Always get independent legal advice from a lawyer, and do not bind yourself to a purchase before you have seen all important documents and fully understood the contract. Make sure that the developer can provide you with all required documentations including land ownership and building license, and wherever possible, use a company which is a member of a professional body, such as the AIPP. It doesn't provide complete protection but does provide some reassurance and recourse if things go wrong."
This reflects the way the buying process has changed in Spain in recent years. Not too long ago, it was not uncommon for buyers to pay at least part of the purchase price of their property in cash as a way around capital gains tax for the vendor. Stories of buyers heading to Spain with briefcases of cash were not as far-fetched as they seemed, and the need for independent legal advice was often overlooked or ignored.
There have been some issues with buying property in Spain recently - as the country develops, the somewhat casual attitude to laws, planning permission and localised corruption is being targeted by the authorities on one side; while the exponents of the original dodgy property deals have been leaving their clients exposed to fines, prosecution and even having their homes destroyed. Bad publicity has damaged the industry, and coming as it does at the same time as the credit crunch in the UK, confidence in the Spanish housing market is at the lowest level it has been for some time.
The most recent controversy has been over the coastal law, or ley de costas. This is the national decree that stated that no residential property could be built within 100 metres of high tide on any part of the coastline. The law was passed in 1988, but until 2007 was largely ignored by developers and the authorities alike. Suggestions have been made that local authorities who were embroiled in the corrupt issuing of planning permission for schemes they knew to be illegal were also responsible for not enforcing the ley de costas.
It isn't difficult to understand why Spain is still the most popular place for Brits to go when they are looking for their warm-weather escape. The expat culture can be easily dismissed by the snobs as supplying fish n' chips and daily tabloid newspapers to the handkerchief-on-the-head masses, but that would do the country a huge disservice. Spain has the diversity, history, culture and family-centric lifestyle to make many in this country jealous; and combined with the weather, its place at the top of the overseas property tree is logical.
In addition to this retrospective application of an old law is the fact that some local authorities happily took backhanders and granted planning permission for developments without even looking at the plans and accompanying documents. The discovery of this high-level corruption has again left thousands of buyers on the Costas unsure of the future of their investments. Many are fighting in the courts to make sure they don't lose their properties completely.
Spain's organic farmers dodge recession
Organic farmers in Spain have built their businesses in ways that mean they avoid both economic boom and bust.
Spain's downturn hits foreign workers
The Spanish economy was booming until relatively recently. Now it is in trouble, and the Spanish government is reconsidering its policy on foreign immigrants.
Eurozone economies contract 2.5%
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