The 2006 Homebuyer Show, to be held from 17 to 19 March at the ExCeL centre in London, will for the first time include a Spanish auction house alongside traditional property agents.
Inez Rix, director and auctioneer of direct auctions, commented: “We have seen many British buyers using our service because they recognise that buying a property at auction can save them money and time. When you buy a property at auction you know you are paying its market value based on what it is worth to the people bidding, and not what an estate agent or owner would like it to be worth, and our fees are just an open commission rate of 2.5% compared to regular estate agent’s fees which can be three times that.”
Experts at The Homebuyer Show will advise that, as with any property purchase, auction buyers should ensure they have done their homework before getting carried away in the bidding.
Viewings can be arranged up until the day of the auction and all the relevant documents relating to a property are available for inspection ten days before the auction. It is important at this stage to have the property title deeds (escritura) checked by a lawyer and to make sure that no utility bills or community fees are outstanding on the property as under Spanish law these can be passed to the new owner to pay off.
Buyers should also check that the property is registered. It is not illegal for properties to not be registered if there is no mortgage on them but there are many older properties that are not registered and are bought on a very simple buying form.
Upon successfully bidding on a property, buyers pay a deposit and sign a reservation contract with the full purchase being completed within 28 days. Independent lawyers are on hand at the auction to advise buyers. Legal, finance and property purchase tax are payable at this stage which will add up to around 10% of the property price.
Many different types of property are available at auction from plots of land to resale houses and apartments, and villas and commercial properties. Many properties are from vendors who are a short step away from repossession and therefore after a quick sale and are willing to offer their property at a cheap price.
However, Inez Rix has advised homebuyers against buying properties that have been repossessed. “Any property taken by the bank will always have some debt or another against it which is likely to be registered to the property meaning that you will have to pay the debts to obtain a clear title to the property.”
