How to buy an apartment in Spain in Court Auctions
Monday, January 31, 2011 @ 3:54 PM
Spanish property
Our legal adviser is writting about the property auctions process in Spain. To better understand the Spain court auction system of real estate properties, Bronzini will illustrate it with some examples and cases. Pay attention to case 4 which is very interesting.
No matter which option the investor chooses, he must ensure in each case that the real estate property he intends to acquire is a prime property. In addition to that, the investor must absolutely check the liability- situation of the real estate property for other debts.
To better understand the Spain court auction system of real estate properties, I will illustrate it with some examples.
The examples are fictitious and are not exhaustive regarding the acquisition options. A court auction depends very much on the concrete situation, intentions of the bank and the owners, on the offers presented by others and so on. A liability for the accuracy of this article is excluded by the author.
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Hardball negotiators use atypical buying strategies, e.g.:
- Some of the investors buy the mortgage loan at a reasonable price and later on, eventually, apply themselves for the court auction. If there is no offer in the court auction, the investor can swap his mortgage loan for ownership of the real estate property.
- Often, the auctioned real estate properties are allocated to the financial institution itself. The investor has the opportunity to buy this allocation title at an attractive price.
- Another alternative is to buy the real estate property before the auction is held. The negotiation power of the owner of the real estate property is low. The financial institution will intervene to make an attractive price.
Property in Spain