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Spain: Did I buy in Spain? - Peter Esders, Chebsey & Co

Several years ago I think I bought a property

I was speaking to somebody the other day about their property in Spain. The conversation started along the lines of “several years ago I think I bought a property in Spain from a friend of mine”. What transpires is that they had bought a property many years ago from a “friend” and were not sure whether they had the property registered in their name or not. In fact they could not even tell me whether they had signed the title deed or not. What they did know is that they had paid the purchase price, had given a Power of Attorney to the seller’s lawyer (whom they had never met) and had not used the property since then (although the previous owner had used it for a while after the deal went through). Strangely they seemed to be less concerned about the situation than I was.

So where do I start with describing the problem with this picture? Well, for a start even if you buy a property from a friend make sure that you do things properly. As a lawyer I sort out the mess that is left behind when people cut corners because the buyer or the seller is a family member or a friend. Remember that a lot of money is at stake and friendships can easily be broken when it comes to money.

Secondly do not use the same lawyer as the seller. In the UK we are not allowed to do this (and rightly so in my opinion) as there is a conflict of interests. You need somebody independent looking after you. It may seem convenient – particularly if the seller is known to you, but it is simply not worth the risk.

Thirdly, do not give a Power of Attorney to anybody you do not fully know and trust. A Power of Attorney allows people to act on your behalf and so should only be given to people whom you have confidence are going to act under your instructions and in your best interests.

Fourthly, understand what is happening. I am amazed that this person does not know whether the title deeds have been signed or whether the property is registered in their name. Let me get this right – you paid over the value of a property and don’t even know whether you are the registered owner of the property? I wish I was rich enough to be that relaxed about that amount of money. If the property is not registered in your name then there is nothing stopping the seller finding somebody else to sell to, taking their money (as well as the money that they have received from you) and then disappearing. They have then sold the property to two people and there will be an argument over who owns the property.

Fifthly, unless there is very clear documentation do not allow the seller to carry on using the property after you have bought the property. If you are not careful it may be that they could try and claim a right on the property.

Lastly, don’t delay. If something has gone wrong rectify it as soon as possible. Several years down the line the key people in the transaction could have died, disappeared or fallen out with you, or even a combination of these. If something changes then generally it makes it much more difficult, and more expensive, to rectify the situation.

So what can we do in such a situation. Well, the honest answer is that I don’t know. The first thing to do is to identify what the actual situation is by carrying out a land registry search. From that we should be able to get some information in order to take the matter forward. Basically we will have to work our way backwards to find out what the situation is and then work our way forwards again to make sure that the client ahs the property registered in their name.

Peter Esders

Peter Esders is a UK Solicitor who studied Spanish law in Spain and who has been dealing with Spanish law for over 15 years. He can be contacted at Chebsey & Co

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