The prices of such properties can be really advantageous. You still will have to do some research, because owners may have little idealized opinion about their home. Especially if they’ve bought the property shortly before the crisis.
What you should check before buying such a property:
- Note simple – this is a document which shows full details, who is the owner, the exact size of the property and whether it is free of charge or mortgage. You will also get such as information as any injunction. If there is a mortgage on the property, make sure than the seller warrants that payments are updated, otherwise the bank can take the property.
- Make sure that the house is not rented, because Spanish law protects tenants.
- If you are thinking about buying an apartment, you should check that the monthly fees. The seller must prove that he or she doesn’t have any outstanding payments.
- IBI (Impuesto sobre Bienes Inmuebles) is an annual property tax. Make sure that he was paid every year, otherwise you will pay a penalty tax.
How to purchase?
Exactly as the property of bank takeovers. Except, that this process takes much less time. After the purchase decision and the paying reservation fee, the owner and the person buying arrange the signing of a notarial deed and transfer the rest of the amount to the owner account.