AIPP • WHA T T O BUY
WHAT TO BUY:
RESALE T
he main benefi t of buying a resale property abroad is that it is already built – unlike off- plan property, where there is a delay between purchase and completion. So, once you’ve bought, you won’t have to wait 18 months for the house to be built, as you would with an off-plan purchase. While many older homes may not have the facilities and design standards of the latest apartments, resale properties – particularly period ones – often have more character and a better location than some newly built homes, as well as an established infrastructure. The purchasing process for resale properties varies according to the country in which you are buying. For instance, in some countries the agent’s fees are divided between the buyer and the seller, rather than paid by the vendor alone. In certain countries, such as France and Italy, agents need to be legally certifi ed to sell property. As with any overseas property purchase you’ll need to employ an independent lawyer to check that all necessary paperwork is in order with the property. The lawyer will inspect the title deeds to check the vendor actually owns it and therefore has the legal right to sell it. An independent lawyer is particularly indispensable in countries with complex inheritance laws where assets are shared between several members of the same family. In such cases, all family members will
14 AIPP CONSUMER GUIDE
need to give their permission for a property to be sold. Also, an independent lawyer will check that there are no outstanding debts on the property – in Spain, for example, debts are charged to a property rather than a person and a new owner could become liable for them. Make sure you have a survey undertaken before you
buy. In many countries it may not be the custom to get one done but it will ensure there aren’t any unforeseen problems with the property that could end up costing you a fortune in the future. The Royal Institute of Chartered Surveyors (
www.rics.org) has a list of surveyors in Europe. Also, before you sign the contract, check any local planning restrictions that might prevent you from making changes to the property, such as adding an extension or building a swimming pool. Lastly, don’t be tempted to take any short cuts or try to beat the system. Be particularly wary of being asked to pay for part of a property in undeclared cash, known as ‘black money’. This would involve under-declaring the purchase price of a property in order to reduce the taxes paid on it. The process is not only illegal, it can backfi re on you when you decide to sell in the future as you will have to persuade the new buyer to break the law and under-declare the purchase price too – or you’ll end up with a large Capital Gains Tax bill. It simply is not worth taking the chance.
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