3 ESSENTIAL SERVICES
LEGAL: I
WHY YOU SHOULD ALWAYS USE A LAWYER WHEN BUYING ABROAD
n the UK we routinely use a lawyer when buying or selling a home. In fact we don’t have a choice – the conveyancing process involves solicitors.
Perhaps it’s the fact it is so routine here at home, that people buying abroad don’t think of taking the special effort to use a legal expert – when there is even more reason for them to use one! You may not speak the language, be familiar with the property-buying process or actually know anything about the legal systems for starters. Basically you’re highly open to manipulation and making mistakes. Who do you turn to for impartial advice? Not
anyone supplied by the agent, developer, or anyone with interests in the transaction. Using an independent lawyer when buying abroad is arguably more important for your fi nancial protection than when purchasing at home in the UK. In most European countries, due to the role of notaries in the conveyancing process, it’s not practice for locals to employ a personal lawyer. But don’t try to scrimp on legal costs: it could be a costly oversight. Ask around for recommendations from people who
have been through the buying process – and you can also ask the AIPP
. Ideally the lawyer will be bi-lingual
and have a good knowledge of the country’s land laws. The role of a lawyer is the same as in the UK in
that they are acting in your interests so will do all necessary due diligence for you, ensuring
your purchase contract achieves everything you expect and have agreed on.
This will include searches on the property, the land it stands on, planning permissions, and whether it carries any debts or encumbrances. They will act as a facilitator between the different
parties involved in the transaction, and for the sake of practicality, when buying abroad it is common to give your legal representative power of attorney. A good lawyer should also talk to you about inheritance law, how to minimise inheritance tax, and other tax implications – or refer you to a specialist. You should never sign any contract without having
it checked by your lawyer. Even if it has been translated (which it should have been!) and you think you understand everything, it is often what is left out of a legal document that causes problems further down the line.
When you come to complete on the property,
your lawyer should check the public title deed drawn up by the notary before you sign it and pay the outstanding balance. After completing, your lawyer should oversee your compliance of tax affairs and ensure your deeds are registered at the Land Registry. Typically, fees for an overseas lawyer are 1-1.5 per cent of the purchase price, with a minimum fee. These vary between countries and could increase if unexpected consultation is required (as always) but it is without doubt money well spent.
WHY IS A NOTARY.. NOT A LAWYER..
Notaries (notaires in France, notaios in Italy and notarios in Spain) are legal representatives of the state whose job is to oversee and rubber-stamp property transactions. While it’s the job of a notary’s offi ce to draw up deeds, their impartial position means it is not their responsibility to indicate whether the deeds are in favour of either the vendor or the buyer. This is what your lawyer will do, who will (or should) be acting on your behalf and no one else’s.
AIPP CONSUMER GUIDE 33
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