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Anyone experienced unusual practice from estate agents locally?

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Posted: Sat Jan 5, 2019 10:18pm
16 replies635 views9 members subscribed
SteveandPhil

Posts: 11

Location: El Campello

8 helpful posts

Hi, has anyone had any experience when buying or selling a property in El Campello whereby the agent sells the property for a much higher price than they tell the vendor and pocket the difference (paid in cash). 

We are taking further action through Consumo, but I want to check the agents claim that this is common practice in the region - we are talking well over €10,000! 

Please private message me - in confidence. 

Once Consumo have investigated we will also be going to Costa Blanca News....

Thanks 

Steve

mal johnson

mal johnson

Helpful member

Sun Jan 6, 2019 12:46pm

Posts: 213

Location: La Marina

119 helpful posts

Posted: Sun Jan 6, 2019 12:46pm

I had a similar experience when purchasing back in 2004, the company we were using quoted an extra £10,000 on the price, but failed to put it on the paperwork, to cut a long story short, I refused to pay the initial deposit unless all costs were listed, then I finally threatened to go to the courts and report them, surprise surprise, the extra payment was dropped from the price.

RayD

RayD

Super helpful member

Sun Jan 6, 2019 3:18pm

Posts: 2681

Location: Catral

1838 helpful posts

Posted: Sun Jan 6, 2019 3:18pm

I'm not sure how that could work as the selling price is specified on the escritura and would be obvious when you go to sign at the notaría. All you have to do is point it out to the vendedor and notario and the inmobiliario would have to explain.

jimtaylor

jimtaylor

Legendary helpful member

Sun Jan 6, 2019 4:13pm

Posts: 3678

Location: Almoradí

5052 helpful posts

Posted: Sun Jan 6, 2019 4:13pm

I don't know if it still happens, but it used to be common practice for the price in the escritura to understated in order to reduce the tax, and for the buyer to hand one bank draft to the seller and cash to the estate agent. The notary doesn't need to witness the amount changing hands.

From my limited knowledge of people selling properties recently, there does seem to be more transparency about how much is paid to the estate agent. For example, a Spanish friend is trying to sell his property and has agreed that the estate agent will receive €5000.

Davebev1

Davebev1

Very helpful member

Sun Jan 6, 2019 8:05pm

Posts: 541

Location: Playa Flamenca

546 helpful posts

Posted: Sun Jan 6, 2019 8:05pm

This is an old practice, not legal, and really should not be happening.  As Jim said, it used to be common practice for one price to be shown on the escritura and another to be agreed between the parties to reduce tax liability, and it would have been known to everyone involved that that was what was happening.  However it was and still is illegal, and these days should never happen.  You should insist that the escritura reflects the agreed purchase price.


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mal johnson

mal johnson

Helpful member

Mon Jan 7, 2019 12:41am

Posts: 213

Location: La Marina

119 helpful posts

Posted: Mon Jan 7, 2019 12:41am

One name should explain it all, ATLAS.

John56

John56

Legendary helpful member

Fri Jan 11, 2019 2:04pm

Posts: 1799

Location: La Zenia

2031 helpful posts

Posted: Fri Jan 11, 2019 2:04pm

mal johnson wrote on Mon Jan 7, 2019 12:41am:

One name should explain it all, ATLAS.

Sorry, but can you please explain.

mal johnson

mal johnson

Helpful member

Fri Jan 11, 2019 5:51pm

Posts: 213

Location: La Marina

119 helpful posts

Posted: Fri Jan 11, 2019 5:51pm

At the time that I purchased a property, Atlas had a reputation for payments under the counter, unfortunately for some people, they fell prey to their tactics and ended up paying a lot more for their properties with no record of the extra payments mentioned.

John56

John56

Legendary helpful member

Fri Jan 11, 2019 6:01pm

Posts: 1799

Location: La Zenia

2031 helpful posts

Posted: Fri Jan 11, 2019 6:01pm

mal johnson wrote on Fri Jan 11, 2019 5:51pm:

At the time that I purchased a property, Atlas had a reputation for payments under the counter, unfortunately for some people, they fell prey to their tactics and ended up paying a lot more for their properties with no record of the extra payments mentioned.

From talking to people I think that practice is still going on with some of the less honest agents making up to 20K on a single sale.

Classic man

Classic man

Helpful member

Sun Jan 13, 2019 2:35pm

Posts: 175

Location: Villena

55 helpful posts

Posted: Sun Jan 13, 2019 2:35pm

If you paid 'black money' ie part in cash and part through the agent the price on the escritura is, of course, NOT what you actually paid in total.

When you sell the property you will be taxed on any profit over and above what is shown on the escritura.You will be well out of pocket.

I thought this had been outlawed, obviously it is still alive and well. Just make certain the the escritura shows EXACTLY what you have paid.

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