"Who owns the repossessed properties?"
All repossessed properties are fully owned by the Spanish Banks. They were repossessed from previous owners when they were unable to maintain their monthly mortgage payments.

"What is the difference between repossessed and distressed properties?"
Repossessed properties are owned by the mortgage lender. They are sold with vacant possession.

Distressed property are owners working with the banks to sell property to raise cash to pay mortgage arrears. As well as private owners they include property developers selling brand new homes too.

"Why are the repossessed and distressed properties so cheap?"
Spanish Banks only seek to recover the value of the outstanding mortgage loan. They do not want to own these properties or pay for their maintenance, utility bills etc. They are not Estate Agents and have no incentive to 'hold out' for the best possible price.

In the case of distressed properties the banks are working with the sellers to make quick sales to release cash to pay outstanding mortgage arrears.

"How much should I allow for legal costs, stamp duty and local taxes"
We advise all our purchasers to allow 10-12% of the purchase price to cover these costs.

"How good is the legal title"
All properties bought through the Spanish banks will usually have a legitimate legal title. The banks would be in possession of the legal deeds (Escritura) which would have been checked when the original mortgage application was made.

We always recommend that prospective purchasers instruct their legal representative to verify the legal title at the very outset of purchase.

"Why must I obtain an mortgage 'agreement in principle before making a reservation"
The sellers are seeking a quick legal transaction for these properties and have made it a strict condition of sale that they will not accept a reservation unless they are assured that the purchaser has been qualified for a suitable mortgage. This is not required if you are buying for 'cash'.

"Why do I need an NIE number?"
It is a Spanish legal requirement. It will be needed to purchase a Spanish property, open a bank account and to facilitate any tax commitments.

"Do these properties come with any construction warranty?"
This varies with the age of the property. Most new properties have the benefit of a 10 year structural warranty which is very similar to the NHBC warranty issued in the UK. So if your selected property is 2 years old then it will probably have 8 years warranty remaining. If the property is over 10 years old then the warranty would have expired.

In those cases you may wish to commission your our survey to ascertain the properties condition prior to purchase.