Reserving your Property when Buying in Spain
Beware of the Real Estate scams!

Most are not aware of the problems until its too late!

Most are not aware of the real estate scams that can go on in the world of buying and selling property. When a problem or scam becomes apparent, it is often too late to react, and the estate agent will probably get away with it.

Reserving your property

When buying a property in Spain, you will usually be asked to sign documents relating to your chosen property. You will also be asked to make a "reservation deposit", a sum ranging from 3,000 Euros up to 6,000 Euros.

The purchase contract will stipulate a time scale for completion, and a further deposit of 10% of the total sale price.

For example, if you agree a price of 300,000 Euros, you will pay 3,000 Euros immediately (your reservation deposit), a further 27,000 Euros within 10 days (making 10%) and the balance of 270,000 Euros at the notary.

This is all perfectly legal and above board

Before you make your purchase, many agents will ask you to sign a document which is, for all intents and purposes, a "confirmation of viewing" contract. This contract will state that you (the buyer) cannot make direct contact with the seller of the property you have viewed. If you do go behind the agents back, then commission must be paid to the agent, and rightfully so.

Likewise, the seller may be asked to sign a similar contract, stating that the seller cannot make direct contact with the buyer. If this does happen, then the agent's commission will be due. Again, rightfully so.

But what if the property is offered cheaper elsewhere?

What if the buyer sees the same property advertised with another agent, but at a lower price. For example, the price advertised by agent 1 is 450,000 Euros, but agent 2 is 475,000 Euros. You would obviously choose to use the agent 1 who is advertising the lower price.

But what if you had already viewed the property with agent 2, and signed a "viewing" form?

The answer is very simple

A "viewing" is exactly that, no more and no less. You are not obliged to purchase any property you see, nor are you obliged to purchase any other property with an agent who has shown you that property. You are free to look in any estate agent window, and you are free to visit the same property with as many agents as you like.

From a seller's perspective, any agent with whom you have contracted to sell your property is allowed to sell your it, unless you have signed an exclusive agreement with one agent.

Some agents will insist on commissions being paid if your property is sold by another agent to a client that they have already introduced. But unless you have signed a contract which states exactly that circumstance, you are free to sell your property to the same client through another agent.

DO NOT SIGN IT!

If an estate agent asks you to sign a contract which states that commissions will be due for any client they introduce who buys your property – do NOT sign it!  Or if you must, then add a clause which says "unless through another agent".

The purpose of the "viewing" contract is to ensure that a buyer and seller do not deal together without the knowledge of the estate agent. This does not mean that you cannot use another agent!