Spain Property Auctions

Speaking to Spanish Property Auctions, the auction side to business is certainly gaining ground over the traditional estate agent. “It’s about bringing the seller and the buyer together in a way that’s different from the traditional agent’s role. Apart from that, much of what we do is just like the way that you would expect a good estate agent to take care of a client.”

Their role includes taking clients to view homes, giving them advice on legal matters, helping them find mortgages and pointing them in the right direction when they need it. So who would benefit from choosing an auction? “Really it tends to be people who have tried the traditional estate agent route and it hasn’t worked. They’re probably keen to return to sell-up and return home  and they are looking for an alternative.”

For the buyer the advantage of a property auctions in Spain is the bargain properties on sale. And there are plenty of safeguards too. You can arrange to inspect the documents for a possible purchase prior to attending the auction. So there shouldn’t be any unpleasant surprises. All purchasers are advised to have a full survey done on the property and if there are major problems that haven’t been disclosed then the 3,000€ deposit is fully refundable.

“We always advise clients to have legal representation and not to try and do things on their own.” 

The auction alternative

Before the auction…

  • you can view the property in just the same way as you would normally
  • you can appoint a legal expert to help you through the process
  • you can check documents relating to the property 7 to 10 days prior to the auction
  • all properties have a reserve price – this isn’t disclosed to potential buyers
  • you can have a survey done on the property
  • You can make a bid on a property before the auction if you like
  • any debts that might be accrued against the property are cleared prior to auction

At the auction…

  • you need to bring identification with you to the auction house including NIE and passport
  • someone can bid for you at the auction by proxy
  • the auctioneer will advise you on how to place your bids

After the auction…

  • you are asked to sign a reservation contract and pay a 3,000€ deposit
  • the deposit is refundable if a survey shows there are undisclosed defects which could invalidate a mortgage
  • once the auction is over you can still make a bid if the property didn’t sell.
  • completion on the property is between 30 and 40 days after  the auction takes place

 

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