buying an apartment

[jjacks]

We are coming out next week to view some apartments and just thought I would ask those who have already done this for any words of wisdom. I am excited about the prospect and so I think I needs some words of advice to keep my grounded.

 

[Deanscroft]

Just one or two things that spring to mind -

Check that you have all the outgoings listed. For an apartment there will be a Community charge, two local taxes, plus the property owners income tax.
Also is the water included in the Community charge or extra.

If you intend offering the apartment for rent be aware that taking holiday bookings for an apartment in a Community is illegal, lots of apartment owners ignore this but you could have problems if anyone in the Community complains.

Lots of apartments were built in the 70s and 80s and expensive renovations are due such as rewiring and new water pipes.

Lastly - a word about Community swimming pools. They might look nice on the estates agents leaflets when they are deserted but consider how close the pool is when it is full of all the other owners screaming children!

 

[jjacks]

Thank you for the advice Deanscroft. I am trying to keep a check list of things I need to look at. I hadn't thought about the electrics and water pipes but they are valid points. I'm not too fussed about a swimming pool. We are looking for a fairly central location in the port and hopefully wouldn't be too far from the beach. We really want the apartment for ourselves and family and so hadn't figured on renting it out. However, I wouldn't rule out renting in the future.

JJ

 

[Harters]

To blag the old saying - buy in haste, repent at leisure.

Don't rush into things. Make sure you have all the information you think you need - then check with an independent source that it is what you think it is - don't rely on an estate agent (who is acting for the seller) to be necessarily forthcoming. Make sure you get good legal advice from a local lawyer, who speaks good English (so you understand it).

 

[jjacks]

Thank you Harters. I have looked on the forum for recommendations for a solicitor and have a couple in mind. We have been thinking about this for about a year now (I wish we had taken the plunge when the rate was better) and have tried to absorb as much info as we can. We have a couple of trips lined up this year and so we will take our time.

JJ

 

[Molt de Renou]

Deanscroft makes two very valid points, the age of the building and if the water and electrics have been updated and noisy neighbours (and dogs), something very few people seem to enquire about.

My advise would be to find an agent you can trust. There are plenty of them about, preferably an API, as they can advise you probably better than a busy, which all of them seem to be, solicitor.

Whatever happens, the public notary is your friend as he will certify the purchase is totally legal and above board.

Also don't buy a property just because it gets the morning sun. You need to go back and see what it is like in the evening. It can get very cold here in the winter.

And last but not least don't forget the 8% stamp duty, payable by the buyer, on properties sold for less than 400.000 euros.

Good luck

Molt

 

[Sparky]

In case any of you were wondering what an API is, here is the definition .

API is the most recognized real estate regulation body in Spain. The letters API stand for "Agentes de la Propiedad Inmobiliaria", or "Real Estate Agents" in English. Agents who carry the API stamp have received official training and a credential that is backed by Spain's "Ministerio de Fomento". Their fees are strictly controlled and an official college monitors their behaviour. Misconduct by an API agent can result in fines and a revoked license.

Busy or not i would still recommend you use a solicitor as has already been said an agent is working primarily for the seller.

 

[Nick]

Thanks for the API advice MdR. Didn't know that but will certainly remember it for the future.

All very good pointers here but the most important has to be to make sure you use a solicitor, or Notaire.

 

[jjacks]

Thank you everybody for the good advice. I will certainly look up the agents who have API recognition. I have a couple of names for a solicitor but if anybody else would like to recommend one I would be grateful. I never thought about 'morning sun' or noisy neighbours, but it makes sense to check. Fees we have allowed approx 11% of purchase price - does that sound about right?

 

[Molt de Renou]

Sounds perfectly OK, obviously the more the property costs the less, in proportion, the indirect ones ( solicitor and notary ) will be.

The notary, by the way, is part and parcel of buying and selling anything in Spain.

Until he has gone over all the paperwork in the presence of BOTH the seller and the buyer or their legal representatives with a POA the transaction cannot be finalised.

 

[Molt de Renou]

By the way, before you can actually sign for anything, you will need a NIE ( tax identification number ) which are not difficult to get but can take up to a month to receive.

Worth bearing in mind in case you see something you really like and don't want to lose it.

Another thing would be to open a bank account here for which you will need your NIE number if it is to be used for anything to do with purchasing assets in Spain.

 

[Molt de Renou]

Lastly ? if you are planning to ask for a mortgage do it as soon as possible as it can take some time for it to be approved due to the paperwork generally asked for.

Surprisingly, banks normally ask for an official valuation of the property AFTER it has been approved, and not before, which means you can apply for more and probably find that your needs will be less when the property is valued by an official valuer and not the estate agent.

 

[jjacks]

We won't need a mortgage, but this will be a joint purchase with my sister. I'm not sure how that complicates things - will we both need an NIE number?

 

[Molt de Renou]

Yes, as as it will be in two names, you will each be liable to pay 50% of the annual tax assessment on the rental value of the property.

In this particular case you will both need to draw up a Spanish will.

Molt

 

[Molt de Renou]

I totally agree with Sparky in regards to aquiring the services of a solicitor, as their advice will be essential and more sound and uptodate than bloggers like me.

What I will say though is that in this day and age of digital communication, it is not essential that they should be based in the Pollensa area.

Local and national laws are the same every where and public notaries are available all over the island.

 

[whaleywanderer]

For a solicitor to be truly independent I would recommend you use one from outside of PP. Puerto Pollensa is a small town and because of this the estate agents and solicitors are all known well to each other.

 

[bevgt]

So does that mean you can apply for a mortgage before you have found the right property and the bank will give you a decision in principle so you are up and ready to put in an offer if you see something you like.

 

[Molt de Renou]

In a nutshell, yes.

But you would be paying interest on the total amount and I suppose most banks would prefer you to invest in a property pretty soon after being granted the mortgage, as it will be classified as a secured loan and not as an unsecured one.

PS please remember that this only applies to foreigners who are not resident in Spain. If you are a resident the property needs to be sourced first. Also every bank has different ways of doing things, so it would be best if you confirmed with your Spanish bank manager first.

 

[cumberland8]

Take heed of the excellent advice from Whaley, friends of ours were caught with their pants down in a local property transaction.

 

[majprop]

I have to point out that the statement made by Molt De Renou "Local and national laws are the same every where and public notaries are available all over the island" is incorrect, If you are referring to property purchases which appears to be the run of the "Blog", Local regulations all over Mallorca are governed by the town halls and each town hall has its own regulations and local laws regarding properties, buildings etc. This is more reason to choose a good lawyer who works in the particular area where you are buying. Using a lawyer in say Barcelona would in most cases result in the lawyer contacting another lawyer here to check the regulations, it does not take a mathematician to work out what the result of that would be.