There are many reasons why you should engage a lawyer when purchasing a property, especially in a country where rules and procedures differ from those in your country. In Dana Legal Consulting we have several years of experience in this field and know how important it is to know where the client comes from. This enables us to provide understandable advice to our clients – and we are not only referring to the language. Here are our Top-5.
1. Independence/impartiality. Impartiality and independence are inherent elements in a lawyer’s activity. The lawyer has no interest in the transaction itself, only in the legal issues and what is best for the client. A lawyer’s advice is guaranteed with civil liability insurance.
2. Security/protection. The purchase process is simple, but with many legal aspects to verify. The legal research looks at whether the seller is the owner, whether a mortgage is registered on the property, and whether any prepaid amount and compensation are reimbursed in case of breach of contract. Drafting the contract, the lawyer may take into account possible urbanistic procedures against the property even with a valid occupation license, whether mortgages are correctly canceled, or discrepancies between the registered construction and the reality.
3. Minimizing costs. Good legal advice involves the study of the buyer’s circumstances and the possibility to reduce costs, e.g. application of a 2%- tax instead of 7%, the benefits of setting up a company, or expense deduction if the property is rented out. Also, inheritance is worth a thought.
4. Lawyers can and should provide useful advice in other legal fields that are related to the acquisition but not in itself a part thereof. Some services are necessary for the purchase process, e.g. opening a bank account and applying for a NIE number, but it should also be considered whether the foreign buyer is going to live here and needs a residency card, whether the client is considered a tax resident, and whether setting up a Spanish company is better for the acquisition.
5. Easy and comfortable. The purchase of a property is time-consuming. Engaging a lawyer facilitates the process and saves your time. A power of attorney is another useful way to save time and money – the client can sign in his home country and it enables the lawyer to carry out all matters on the client’s behalf.