AIPP • TEN THINGS YOU SHOULD NEVER DO
TEN THINGS NEVER
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YOU SHOULDNEVER DO WHEN BUYING ABROAD
Use a lawyer who’s also working for, or has a close relationship with, the agent or developer. Not only is it vital to use a lawyer, but make sure the one you choose is independent and has no confl ict of interest with the agent or developer from whom you are buying.
Confuse a lawyer with a notary. Easily done, as notaries aren’t part of the conveyancing process in the UK whilst in most popular overseas destinations they must, by law, rubber-stamp all property transactions.
Sign a contract without independent legal advice. This is especially crucial when buying an off-plan property and during inspection trips, when you might feel pressured into signing something. A good lawyer will always be available by email/fax to check a contract.
Rely on something unless it’s in the contract. Rental guarantees, in particular, are often promised verbally but strangely absent from the contract. Ensure your contract is watertight.
Turn a blind eye to additional buying costs. In some countries taxes and fees can add another 15% on top of the purchase price – bear this in mind when budgeting.
Ignore the effect of fl uctuating exchange rates. Remember, the buying power off your Pound decreases or increases as the value of the Euro or Dollar fl uctuates.
Overstretch your fi nances. It’s a dangerous strategy to rely solely on rental income to cover your monthly mortgage repayments. Always have funds in reserve.
Ignore the local taxation system. Get advice about your tax obligations and never assume things are done the same as in the UK, especially when it comes to inheritance issues.
Under-declare the purchase price. It was common practice on the Continent and some locals still consider it acceptable BUT don’t be tempted – it’s fraud and could land you behind bars.
Let your heart rule your head. The vast majority of overseas property purchases run smoothly, but your dream property could soon turn into a nightmare if you fail to do your research and safeguard your own interests from the outset.
58 AIPP CONSUMER GUIDE
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