Answer

• Please click on a question on the left to view the answer for that specific question here.
• This method of purchase has always been available. However due to the complicated nature of the process it has never before been offered outside of Spain. We have a dedicated team of Spanish speaking professionals, who specialise in this type of purchase.
• Yes. Any bank disposing of a repossessed property would like the outstanding debt to be paid in full plus all the accruing interest since the previous owner defaulted and all associated legal costs - this can of course be a considerable sum, thus rendering the property much more expensive than you might hope.
• Spanish Banks do not want to own property. If they do have to repossess a property, they will want to sell it and get their money back. It is a known fact that most banks will offer such properties to their employees first and their favoured clients next. You can imagine, the better the bargain, the less likelihood of a non-domestic buyer getting a look-in.
• No. This is a unique opportunity open only to those with ready cash funds and able to move quickly.
• Yes of course. Once all the completion monies are paid you will be the registered owner of the property.
• Absolutely none. The lawyer can only use Power of Attorney on your behalf when instructed to do so by you. It is used only for specific questions where there is to be an answer 'Yes' or 'No'. Without it, properties cannot be purchased in this way.
• No, this is an extremely specialised procedure. Our dedicated team are engaged full-time in the relevant searches on your behalf, and are aware of those of your chosen properties that are actually being offered for sale on the given date. A high proportion of properties coming up for auction are withdrawn at the last moment due to outstanding debts being settled. Your own lawyer would be fruitlessly spending time carrying out searches on properties that may never come to auction. In any event he would have insufficient time to carry out all necessary legal searches regarding property title, outstanding debts etc within the short time frame available.
• This will vary week to week and will depend on the client's specific requirements.
• It is in our interest to achieve the lowest possible price on your behalf to encourage your future investment. Our fees are not linked to the price you pay.
• Very accurate. In many cases the successful bid is less than the guide price. This bears no relation to the English property auction system which is based on the 'come and buy me' guide price which almost always is well exceeded by the actual sale price.
• Very likely. However, because this is an auction process it cannot be totally guaranteed. Should you inform the lawyer that your interest extends to more than one property choice then clearly this greatly increases your chances of a successful bid on one of your chosen properties.
• The only costs to be added to the bid price are fixed legal fees of 10,000€ (+ IVA), notary costs and property transfer tax. This tax is currently 7% of the purchase price, unless it is being purchased by a Spanish S.L company, whereupon it becomes 2% (This tax applies to all property purchases in Spain regardless of how purchased).
• Depending on what time frame suits your needs, one or more of the following four options may be appropriate:
  1. Put the property straight back on the open market. Bearing in mind current market conditions you will be in a very strong position to offer the property at a very attractive price.
  2. Rent out: Either to the holiday market or to a short hold tenant, whichever suits your needs best.
  3. Raise a mortgage on the property (likely to be as much as 70% of its Bank Valuation if required). You can of course still then rent it out to provide income to help pay for it. Also you can use the funds to purchase again if you so wish.
  4. Sit back and do nothing. Let friends, family and employees use the property as well, enjoy the Spanish lifestyle and wait for the market to improve.
• Due to the unique nature of this method of purchase, most other companies do not have the professionals in place nor the expertise to handle this process. Based on our wide experience in the real estate industry on all parts of the Costa del Sol, we were able to research the auction sales process. We have created a hassle-free opportunity in which our clients can participate.
  
  Real Emerging Markets is working with one of the most respected and well established company of lawyers in the area to handle these property disposals. We have all the professionals needed and are able to inform our prospective clients of this process with the maximum candour and lack of hype.
  
  This is a complete change of direction for us and our clients, but, in these difficult times, it is the most positive way forward.
• The process is totally safe. All monies are transferred to the lawyer's client account until such time as they are required to be paid to the auction, as such they are 100% protected. In the unlikely event of your bid not being successful, this money is repaid in full.