Buying a property is an exciting milestone, but ensuring you make the right investment requires careful planning and due diligence. Once you’ve found "the one," there are essential steps to verify your chosen property's legal status and other critical aspects. Don't worry—your solicitor will help manage these checks.
However, taking the time to familiarize yourself with the buying process and the area will ensure a smoother journey. Here's a list of 9 crucial questions to ask before signing on the dotted line.
1. What Is the Legal Status of the Property?
The legal status of the property can significantly impact its price, resale value, and eligibility for mortgage financing. Always have a qualified lawyer verify the information provided by the seller or estate agent.
2. What Is Included in the Price?
Clarify early what’s included in the purchase price. Is furniture part of the deal? How about parking, storage space, or additional fixtures? Defining these terms upfront prevents misunderstandings later.
3. What Are My Total Costs for Buying and Owning the Property?
Beyond the purchase price, factor in additional expenses like taxes, community fees, property supplies, and non-resident taxes. These costs can vary based on the type of property and its location.
4. Should I Carry Out an Inspection of the Property?
For apartments, inspections may be less critical, but for villas or townhouses, hiring a verified inspector is highly recommended. A thorough inspection can save you from costly surprises down the road.
5. What Guarantees Are Included?
Understand the guarantees that come with your purchase. For newly built homes, developers often provide a 10-year construction guarantee. For resale properties, guarantees are typically limited. If you're considering a new build.
6. When Should I Contact a Lawyer?
The earlier, the better. Your lawyer should review the reservation contract before you sign it. In Spain, a property is typically reserved by transferring a deposit—but ensure the deposit goes to a neutral escrow account, not directly to the seller.
7. Can I Rent Out the Property?
If you're considering rental income, investigate the legal status of the property and whether the urbanization permits short-term rentals. Check if a rental license is already in place and request documentation on past rental returns.
8. Are There Maintenance Costs for Resort Complexes?
Properties in resort complexes often have shared amenities like pools or gardens, which come with annual maintenance fees. Confirm these costs, review their consistency over previous years, and ensure the current owner is up to date on payments.
By asking these critical questions, you can make informed decisions and avoid unexpected surprises during the property-buying process. Partner with a trusted lawyer early in your journey and take the time to explore your options.
