Illustrates how easy it is to be duped in to property buying on Spain’s Costa Tropical.

Trick or Treat: a tale of two "agents" (names withheld)

"Would you honestly buy a property from someone you met in the street, or in a bar, in your own country! I am not surprised that Spain manages to get such a bad press these days when there are people like you about... I’m happy that you were stolen by people of your own nationality and not a Spanish person." – the notary said via the official translator. We looked at each other with raised eyebrows; but had to agree. We had been swept along by the dream, and the confident promises made by the apparently well-informed couple of agents we met. Today, this whole experience has left us bruised, cheated and still as I write this - out of pocket!

Our story begins three years ago. Like so many people we had become disillusioned by the way in which our society in the UK was changing; and my husband and I decided to look to other locations in Europe where it would be best to make a new life. Our youngest was then 17 years old, and we realised that if we chose to move now then we had a very good chance that she would settle easily and be more open to the language and culture change. Having first looked at properties in France and northern Italy, we finally focused on southern Spain. Our reason was plain; with so many English speakers in this part of the world then we had a very good chance of finding work or setting up our own business.

To begin our search we proceeded to organise several short trips to the Costa’s and also some inland areas like Lanjaron, Cadiar, and around Lake Vinuela. We finally settled on the Costa Tropical and the villages of the Tropical valley certainly appealed. Returning home, our next step was to begin to search the various websites for properties that interested us and after a great deal of investigation we soon realised that the same properties were for sale with various estate agent sites (#1). We sent a few emails off to various agencies, and fairly soon were contacted by an agent. He called to assure us that he was not only the best and most experienced in the area but that with him we had no need to contact anyone else as he was working with all the agents in that part of the world. We told him what we were looking for and waited for him to confirm the appointments.

A week later we were in Spain; having been advised to meet the agent first before showing us the various properties. He suggested it was best to meet him in the village because he had appointments earlier in the day at the same location; and so there was really no need to meet at his office. This accepted we met the agent at the bar in the main square. He offered us a drink, and introduced us to his colleague who was going to show the properties with us. After a brief chat we were off to view and we soon found a property that we loved – and as they say on the TV "...ticked most of our boxes." That evening we were resting in our hotel when the agent telephoned. He was genuinely interested in our thoughts and was keen to help and advise us. Did we need to view more properties, or see any favourites again? We agreed to speak with him the next day, once we had had time to think more.

At 10am the agent called by our hotel - he was just passing? He told us that his colleague was showing one of the properties we liked, a second time, to the clients from an earlier viewing; and that if we wanted to see the property too he could arrange this that morning. Without hesitation we went to view the property again; the agent said that he would be happy to act for us if we wanted to put in an offer. We did, and there and then gave him 500 Euros in cash (from the nearest ATM) - "...to seal the deal!"

Over lunch we talked about the property, it had deeds so there was no problem, the vendor was also English, so there would be no problem with language or misunderstanding: and consequently, we were told, no need for the added expense of a lawyer. The agent said he would help us open a bank account, take us to apply for our NIE’s and even liaise for us with the sellers agent (#2) while we were in the UK. He offered to help us find a good mortgage, but as we had savings in place then we had only to send over the money to our Spanish bank. We settled the restaurant bill and arranged to meet the agent again the next morning to apply for the NIE’s .

All seemed to be going well with the sale, and just 6 weeks later my husband flew to Spain and sign at the notary. We were so excited. At the notary, it was explained that the property had an escritura but that this had not been registered with the land registry – the agent told us not to worry as this was quite normal in Spain. The notary translator then explained that it would be best that on this exchange we arrange to pay the taxes and register the property. Before returning to the UK, my husband left the provision of funds required, some 12,000 Euros in cash, with the agent and his colleague to arrange the taxes and registration on our behalf.  By the end of that year we were living in Spain, working in Spain and living our dream. All was going so well ... and we were very pleased with all that these agents had done for us.

Then two years later, we received some devastating news that meant we would have to return to the UK. We had no choice but to find somewhere to rent; and put our house in Spain for sale. We contacted the agent who had been so professional and helpful when we first came to Spain. He explained that he would do his best to sell our house, and we had no need to contact other agents as he would arrange this on our behalf. We returned to England, and from this moment our problems started.

We realised that things were not quite right when a second estate agent (lets call them Y Estates) in Nerja called us to say that they had seen our property for sale on a website; and asked if they too could act for us in the sale. We told them that as far we understood, our local agent had given them instruction to sell the property too. This was clearly not the case as they had no information via our agent. We arranged to get keys to them by post, but when they asked for a copy of the deeds we then realised that these were still with our first agent and his colleague. Several weeks passed and eventually the local agent (Y Estates) was told by the agent’s colleague that he (Y Estates) could collect the deeds from a local bar. It was at this stage that things began to get confusing... The local agent (Y Estates) then telephoned us to say that the deeds had not yet been registered, nor had the taxes been paid. In fact there was already a fine on the property for non-payment of taxes that added a further 1,200 Euros to the original costs. We were dumbstruck – how could this have happened. We had given the cash to the two agents to do this when we first bought the house. (#3)

Today we have spent most of the morning at the office of Y Estates, and they have arranged that my NIE be collected (since it also appears that despite promises it actually never was) and they have also organised that our fiscal stamps be ordered and presented to pay the taxes; so that (finally) we can register our deed. At his insistence, and before presenting the deed to the land registry, he also arranged an appointment with the office of the notary, just in case we had to rectify the original deed. Which we have also done this morning, since it appears that the house was only in my husbands name - and not the both of us. We are still waiting to be refunded by our original agent and his colleague; and despite months of promises, in the mean time we have been forced to arrange a loan in the UK to meet these additional costs. The provision of funds needed for the work have been given to Y Estates – who without any prompting issued a written receipt for the sum received. We have also learnt that because our deed has never been effectively registered in Spain then we will need to have it published at the town hall before it can be recorded at the land registry. This operation alone can take a further 3 months before we will receive our fully registered title deed. All this because we met a man in the street, who while seemingly knowledgeable and professional, completely mis-represented our interests.

With hindsight this whole experience has made us very unsure and completely despairing of human nature. If only we had stopped to think, to ask that second opinion, to ask a lawyer’s advice, even to have asked for a receipt for the money we gave them, then things now would be very different.

NOTES:

#1 – The practice of property exclusivity with Spanish Estate agents is quite rare. The reason is that the different agents tend to direct their product at specific markets and more often specific nationalities. Consequently you will often see the same property for sale on various websites and property portals. Some estate agencies operate from business premises while others simply offer a local contact, or mobile number – and this acts as their representative on the ground.  For any buyer this can be confusing if not suspicious . Often it means that between agents  there can be quite a variation in sale pricing too - from a few hundred to several thousand Euros.  For the seller it can mean that they have no control over the publicity of their property and with some finder "agents" simply copying the details from other sites to their own, then the sellers rights can be compromised. While it may appear a very free and open ended market it is still best to be cautious with whom you are dealing...

#2 – Perhaps the best way to be sure that you are dealing with a reputable agent before making any offer is first make sure that they are operating from existing business premises, that they are registered for tax (ask for their CIF number), and that they have available a copy of the Documento Informativo Abreviado de la Vivienda (this is an abbreviated extract of the current status of the property – and includes information from the escritura, nota simple, cadaster, etc). Also it does not hurt to ask locals for their recommendations, and ask how long the agent has been operating in the area. This is often the simplest and best way to discover if the agent you are dealing with is trustworthy and honest.  Other useful  resources include searching blogging sites for information about particular agents and also the website http://www.euroresidentes.com/

#3 – It is important that when handing over any monies to your agent or representative that you always receive a receipt for the payment made between you and them. This is often forgotten in the excitement of the moment but to be absolutely sure that your Spanish property is registered in your name(s) then after 30 days from signing at the notary simply apply for the latest nota simple. Costing a couple of Euros, this document is available either online from the property registration website and can be purchased by credit card at -

https://www.registradores.org:444/propiedad/propiedad.jsp 

or by visiting the local office of the land registry in which the said property is listed. This document identifies the property title holder(s), their legal status, the number of times the property has been exchanged or amended, its cadaster reference (land, location and distribution for taxation) and a description in full of the property relative to its location and its neighbours. This is also the best way to be sure that the registration has been done in your absence, especially when you are not in the country to check yourself.