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Is it normal for an agent to ask for cash deposit?

Posted: Thu Apr 25, 2019 10:07pm
7 replies270 views7 members subscribed
ELLa Christella

Posts: 5

Location: Los Balcones

Joined: 25 Apr 2019

We looked at 3 properties with an agent for a one year rental. We made an offer on one and owner accepted. The agent said that we need to pay a cash deposit and sign a contract.  Is it normal to ask for cash?  I just tried googling the agent's company to read reviews and found none. Should I be concerned?

Rdudden

Posted: Thu Apr 25, 2019 11:01pm

Rdudden

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Joined: 7 Nov 2017

Posted: Thu Apr 25, 2019 11:01pm

this is the wild west no money only credit card you are then protected

Willy

Posted: Fri Apr 26, 2019 8:57am

Willy

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Posted: Fri Apr 26, 2019 8:57am

Best to pay the deposit to your solicitor then they pay to the agent and do NOT use the agents solicitor get an independant recomended one..

craig245t

Posted: Fri Apr 26, 2019 10:01am

craig245t

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Posted: Fri Apr 26, 2019 10:01am

As above......DO NOT sign anything or pay a cent.

Get your lawyer to review the deposit contract and let them handle it. Our lawyer refused to agree to the sellers deposit contract as it did not favour us. He insisted on changes before we signed, and that was just the deposit. You need to be properly protected.

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271935

Posted: Fri Apr 26, 2019 10:15am

271935

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Posted: Fri Apr 26, 2019 10:15am

Confirm what everyone says. 

1. Get an independent Solicitor lined up

2. Make the offer in writing by email

3. If the offer is accepted pass the agent your solicitors details

4. Ignore the agents scare tactics and refuse any deposit paid to them

5. Formally instruct your solicitor 

Step away and let your solicitor do the work.  Limit your engagement with the agent.

ELLa Christella

Posted: Fri Apr 26, 2019 12:00pm

ELLa Christella

Original Poster

Posts: 5

Location: Los Balcones

Joined: 25 Apr 2019

Posted: Fri Apr 26, 2019 12:00pm

I contacted my friend who has lived all over Spain for several years and she said it's normal and that she paid 3 months cash (1 month deposit, 1 month agent commission, first month's rent) for her current flat.  

Ancient Printer

Posted: Fri Apr 26, 2019 2:09pm

Ancient Printer

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Posted: Fri Apr 26, 2019 2:09pm

I've lived here 34 years and handled many long term rentals (I'm not an agent!). These do not need a tourist licence but I am not sure about only a year. The norm was a minimum, of three years but this just incrased to five years. In these cases the agent typically provides a contract which should be in English as well though you might want to check that the text is accurately translated. I've seen some ugly translations usually due to the translators' lack of good English. The legal force lies in the Spanish, remember. You only provide money ON SIGNING and receiving the keys and the owner keeps the deposit - typically one or two months PLUS the first month on signing - so total three months. Make sure meters are read on take over. Often agents are casual about this - don't allow it! You need not fear taking a long term contract as you are entitled to give notice (two months now I believe). The landlord cannot evict you for five years - not really fair on the landlord! But few tenancies I find last more than about 18 months. By all means us a lawyer if in doubt but the extra cost may seem excessive for such a short stay. Buying is a TOTALLY different matter - only a fool would buy without.

AlicanteDesign

Posted: Fri Apr 26, 2019 10:07pm

AlicanteDesign

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Joined: 16 Jun 2017

Posted: Fri Apr 26, 2019 10:07pm

Renting it’s normal for an agent to ask for cash at the start of a contract. Cash should never be handed over as a deposit, use a bank transfer. I’ve just taken a new lease on a property in San Juan. I didn’t bother bringing a bag of cash to the agents office. The agents girl explained they weren’t equipped to take credit cards. A bank transfer would be fine if I showed them the transfer receipts. I borrowed their computer and made the transfers. The owners checked their online banking to verify the payment and were happy. If you pay cash make sure and get a proper receipt. 

The agents portion of the payment (1 months rent) should include a VAT/IVA payment. It’s a business transaction. The receipt should be 1 month rent + IVA (21%) Alternatively 1months rent including the IVA.

Rental contracts in Spain start with a 12 month period. After 12 months if the tenant renews they (currently) have the option to stay for 5 years. The landlord has the option to raise the rent or reposes the property under certain circumstances. Ie. they want to Iive there. It should be written in the contract. Contracts come under the Ley de arrendamiento.


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