paperwork on house is ok but there is an article 205 on the house ?

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
06 Mar 2008 12:00 AM by dkmickey Star rating. 4 posts Send private message

Hi,

Am looking at a wonderfull piece of property in spain and have consulted the broker that tells me all the paperwork is fine but there is an article 205 on the house that will automatically resolve in 2 years..

So my questions is what is an article 205 and where can i read more about it ?

does anyone know ?

all the best

mickey





Like 0      
06 Mar 2008 8:34 PM by J&N Star rating in Nottinghamshire. 342 posts Send private message

J&N´s avatar

Could this be somthing to do with it, extract from http://ipsola.com/article,166,Spain_Buying_Guide_-_Section_3

Other Title Problems

 

 

If the Escritura refers only to a building, the seller needs to register the land in his name with the Town Hall to obtain a Cadastre certificate prior to selling. The procedure requires also 2 witnesses who will swear on oath that to the best of their knowledge the property belongs to the person selling, and once this is done, at the same time, he can sell to you. The drawback is that a third party can claim title within the next two years and that banks will not lend on this property. Also, you will possibly be taxed twice, once for the first registration of the property and secondly for the sale. This has to be thrown into the negotiation process.

The above procedure is commonly known as Acta de Notoriedad, or Procedimiento del artículo 205 de la Ley Hipotecaria, and even though it may sound risky it is not normally the case. This is quite common in small towns, villages and rural areas.



_______________________

Jacqui

http://relocatetospain.blogspot.com our adventure from deciding to move to Spain to being here and moving back to the UK.


 




Like 0      
06 Mar 2008 8:43 PM by dkmickey Star rating. 4 posts Send private message

thanx.. that is exactly what it is...

oh well guess i will continue to look as the morgage company will not accept this..

all the best

mickey





Like 0      
06 Mar 2008 10:25 PM by morerosado Star rating. 6927 posts Send private message

morerosado´s avatar

Hi Mickey, with Jacqui posting that banks will not lend on this property (re article 205), is that why you said the morgage company will not accept this.

Reason I ask is that I saw this  >>>>> HERE 

When one comes across difficulties, and finds there are charges like those described in articles 205 or 206 of the Mortgage Act, we recommend consulting a solicitor. If the buyer is getting a mortgage with a bank, the banker will make sure that everything is in order, otherwise he will not lend the money; so if this is the case, it is normally not necessary to consult a solicitor.

It sounds as if a bank may lend if they're happy everything is in order so your dream could still be your dream.



_______________________



Like 0      
06 Mar 2008 10:29 PM by J&N Star rating in Nottinghamshire. 342 posts Send private message

J&N´s avatar

Well spotted More, I was looking for an explanation of what article 205 was, and didn't look any further.



_______________________

Jacqui

http://relocatetospain.blogspot.com our adventure from deciding to move to Spain to being here and moving back to the UK.


 




Like 0      
06 Mar 2008 11:09 PM by dkmickey Star rating. 4 posts Send private message

i have already spoken to them and they will not touch it with a 10 feet pole , but hey, there are plenty of other houses on the market so is just a matter of going back to househunting i guess...

 





Like 0      
07 Mar 2008 7:21 PM by Smiley Star rating in San Pedro de Alcanta.... 2502 posts Send private message

Smiley´s avatar

The probability is that they have checked and wont touch it as there could be an ongoing or potential future issue - hence as  More quotes - the banker will make sure that everything is in order, otherwise he will not lend the money;

Thus one assumes they have in fact done their checks and decided that everything is clearly not in order.


That being said there are some lenders that treat things like this  more seriously than others and if it one of the recent immigrant lenders to Spain they will likely steer clear of anything they do not fully understand.



_______________________

Smiley - patrick@marbellamortgages.com  www.marbellamortgages.com   www.comparetravelcash.co.uk




Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

Capital Gains on UK Property - 5 posts
Santa Maria Green Hills - 2 posts
More New Kids On The Block - 5 posts
Grupo Suite - 1 posts
Hola a todos - 10 posts
Hi From Benalmádena Pueblo - 1 posts
Property In Spain - 2 posts
SHORT TERM LETS CONTRACT IN BOTH ENGLISH & SPANISH - 2 posts
LONG TERM LETS CONTRACT IN ENGLISH & IN SPANISH - 1 posts
Interesting info on renting your property. - 0 posts
HEAD DOORMAN LOOKING FOR WORK IN SPAIN - 1 posts
Patrick Swayze has pancreatic cancer - 4 posts
Distribution of Community Fees - 16 posts
Font Size - 2 posts
moving to lo crispin - 4 posts
Question for TJ222....and anyone else for that matter.... - 0 posts
Recycled Water - 0 posts
e mail address,s - 6 posts
RETIREMENT TO SPAIN - 1 posts
New Buyer - 2 posts
Brittany Ferry offer. £39 2 night Plymouth-Santander-Plymouth. Book by 12th March - 3 posts
Non-residents buying a car in Spain - 8 posts
Plumbing - 2 posts
driving to spain - 4 posts
easter - where to go - 3 posts

Number of posts in this thread: 7

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:
Email:


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x