Buying Finca in Spain

To add to what Ray has said, make sure that the property is exactly as stated on the deeds to make sure there have been no illegal extensions or storage/outbuildings  turned into living accommodation. Also ask your abogado to check the value as listed with the authorities because Complementary tax can come as a nasty surprise a few years down the line. 

Thank you Cheryl

 I am aware of the Castrato , when checking legalities of the property.

What is confusing me is if for instance I see a property advertised for say 100k, and we haggle a bit and and the seller and I agree  70K, how can that affect anything later  ???.

surely that's between me and seller ?

Obviously there are fiddles concerning taxes etc ( illicit payments to vendor afterwards etc )

But why would this happen if everyone is going through Lawyers ???

PLUS, I am an honest guy !!

This tax was brought in because people were coming to private arrangements whereby a lower official selling price was stated and the remainder paid in cash to avoid paying the full Property Transfer tax (Sorry, not sure of exact terminology), much like in the UK with the stamp duty increase at 250K, there were so many properties sold at 250K with the rest under the radar. Spain has an outdated list of property values and base their calculations on this. I understand that challenges have been successful but it all costs time, money and stress so I would suggest finding out firstly if the difference is significant and if so, would it be possible for your abogado to challenge the valuation as part of the buying process?
Unfortunately if the Taxman thinks he has been shortchanged, it is very much his business!

Another possible situation to be aware of, especially where rural property is concerned, is to ensure that there is only one legal owner, or whether it is in fact owned by, for example, a brother and sister, who may or may not have this legally detailed. If one party only actually has rights to a portion of the property, this may result in all kinds of complications. It was quite common for multiple owners ie heirs, not to have anything legally registered and it has been known for properties to be divided by means of a chalk line down the middle. Our current neighbours, who have lived here for the past 40 years, recently extricated themselves from an intended property purchase involving exactly this scenario. So check!

Before you buy check practical things. Where is the water main stop tap. Mine is 400 metres away. I have to repair leaks on my side of the tap (4 so far). Luckily my neighbours don't mind me going onto their land to do repairs. Check the electrics are sound. We had bell wire upstairs. Also one massive trip switch with a very high rating which resulted in a fire when a wire burnt out. Check the plumbing. We had steel pipes in the walls which had corroded. They needed chopping out and replacing. Fill up a large pan, tip it in the sinks to see how they drain, then check for leaks. If there is a pool ask to see the pool pump in operation. Campo houses are freezing in the winter. I would advise double skinning at least the living room walls and insert a quality insulation. Likewise, tiled floors. Be wary of digging them up. We insulated over them and then replaced the floor. Check the ceilings especially upstairs. Roofs are not as waterproof as in the UK. You may see water marks where water has seeped in. Roofs have shallow pitches and can let water in in different places depending on the wind direction. Visit the house during a downpour if possible. If there is a log burner ask to see it working. Ask to see bulletins for any work carried out previously. If there are none the work may not be legal. 

That's great advice Adrian, thanks.

Lots to consider.

I haven't sold yet, and let's see what the election brings ...

Hopefully we don't have a hung parliament, or we're in for a long slog.

Jim

Good luck. My experience sounds awful but compared to some we had it easy. Expect a transition period of around 2 years to get problems sorted, depending on finances. If you have a contingency fund, double it to cover any surprises. I don't want to put you off buying, just trying to make the process easier for you.