How to Buy Overseas Property Safely - Turkish Connextions

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SECTION CHECKLIST: WHAT TO CONSIDER WHEN BUYING YOUR PROPERTY Research, plan and make sure you know what you are looking for – and what you can expect from other people in the process … Find yourself a good agent. Try to meet them in person, seek recommendations and don’t forget that they are usually acting for the vendor. Is the agent licensed or a member of a professional body such as the AIPP? Ask lots of questions to test their market and local knowledge. Quality agents should be prepared to advise broadly on the region, the property and the buying process. If you choose to go on an inspection trip, paying your way can facilitate greater freedom. There’s no such thing as a free lunch. If buying new-build, check the track record of the developer, what have they built recently, has it been built on time, and how have their earlier projects fared? 2 BUYING YOUR PROPERTY For bank-owned properties and short sales, it is advisable to deal with someone who specialises in that field – you need expert experience. Don’t proceed without independent legal advice or sign anything you don’t understand, get it checked by your lawyer. Budget for the legal fees, purchase taxes, and all the additional costs you might incur as part of the purchase, including money-transfer fees, mortgage arrangement fees, and survey (where applicable). What about ongoing costs? Can you afford to own a second property? Don’t forget management costs if renting, income tax on rental income, insurance and community fees. Investing a little extra in marketing tools can help your property compete in the rentals market if this income is something you’re going to need to rely on. AIPP CONSUMER GUIDE 22
LEGAL: n the UK we routinely use a lawyer when buying or selling a home. In fact we don’t have a choice – I 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 WHY YOU SHOULD ALWAYS USE A LAWYER WHEN BUYING ABROAD 3 ESSENTIAL SERVICES 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 23
Page 1 and 2: HOW TO BUY OVERSEAS PROPERTY SAFELY
Page 3 and 4: WELCOME Welcome to the AIPP’s Con
Page 5 and 6: SECTION 4 ABOUT THE AIPP 32 The rol
Page 7 and 8: Emerging or depressed markets can o
Page 9 and 10: WHAT TO BUY - RESALES S econd-hand,
Page 11 and 12: KNOW BEFORE YOU GO or some property
Page 13 and 14: INSPECTION TRIPS lthough not the ma
Page 15 and 16: via an agent, bear in mind that an
Page 17 and 18: ROLE OF THE DEVELOPER ove them or h
Page 19 and 20: t’s easy to get excited about buy
Page 21: unning costs/community charges you
Page 25 and 26: MORTGAGES n the current climate the
Page 27 and 28: KEEPING YOUR INVESTMENT SAFE INSURA
Page 29 and 30: SIPPS: BUYERS BEWARE ou may be vagu
Page 31 and 32: SECTION CHECKLIST: WHO’S WHO IN T
Page 33 and 34: 4 AIPP WHAT THE BADGE MEANS? We rec
Page 35 and 36: CODE OF CONDUCT n a largely unregul
Page 37 and 38: 4 AIPP AIPP AWARD WINNERS Best Smal
Page 39 and 40: ASAS Pan Gulf for Real Estate Inves
Page 41 and 42: E Ecoresorts sales limited Ecoresor
Page 43 and 44: Island Real Estate International SL
Page 45 and 46: Price Brown & Company Spain daphne@
Page 47 and 48: Tenerife Property Shop S L Spain br
Page 49 and 50: AIPP MEMBERS DIRECTORY FINANCE Exce
Page 51 and 52: For a full and updated list of AIPP

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