Buying overseas property Buying overseas property - paperwork
When you're buying off-plan, you're buying blind, so make sure you're confident that you're getting a good deal
Legal advice when buying an overseas property
It’s essential to employ an independent lawyer, with no connection to the developer or agent, who is fluent in both English and the local language, and who understands not only property law in that country, but how it relates to non-residents. They will usually need to be based in the country concerned, as much of the work will be done there.
In European countries, and some others, you have to use a notary – an impartial government representative who oversees property transactions. These are local officials who will check that the property’s title deeds are in order, run searches to make sure there are no outstanding debts lodged against the property, make sure no one else has a claim to ownership, arrange the payment of taxes and record the sale.
You still need a lawyer to look after your interests though. You can find one by visiting the Law Society’s website. Lawyers are also listed on the Association of International Property Professionals website or your mortgage broker may be able to recommend one.
All documentation should be translated into English. Never sign a contract in a language you don’t fully understand.
Legal protection when buying off-plan
Legal protection is essential if you're buying property abroad off-plan.
A well-negotiated contract should set out a clear payment schedule – for example, 5% on signing the reservation contract, 30% when foundations are finished, 35% when the shell is weatherproof, 25% on completion of the build and 5% when you get the keys.
It should also clarify what finishes the developer is promising and provide a comprehensive, bank-backed guarantee stipulating that if the builders go bust the job will be completed to the same standard, at no extra cost to you.
Your lawyer should clarify how any guaranteed rental income or leaseback schemes the developer is offering will operate. These can look good on paper but may not reflect the long-term rental potential of the property.
