Choosing a good and reliable estate agent in Spain

Before choosing an estate agent you should ask yourself several questions.

• Is the agent legally registered as a Spanish company or partnership. If not, why not? Many web-based agencies evade Spanish taxes and social security. Inevitably, they will ask you to pay commission in cash and will be unwilling to provide you with a receipt. The simplest way to establish whether an agent is legally registered is to request a VAT registration number, known as a CIF in Spain.  Also look for the names of the principal directors or partners of the agency - some firms avoid publishing full names and addresses on the web and simply put a mobile telephone number and a first name. Be very suspicious of any 'company' unable or unwilling to volunteer complete information as they will almost certainly be operating fraudulently.

• Try to establish who exactly is the agent and where they are based. Many web-based agents decline to provide any meaningful information on their 'about us' page - if they have such a page. Avoid agents claiming to cover large areas and offering thousands of properties because they will have little knowledge of property values, local schools, proposed road plans, and building regulations.

•  Look for a real office where an agent can be contacted. The majority of professionals prefer to have an office where they can meet clients. In the UK, would you buy from someone you can only meet in a supermarket carpark?
 
•  Look for membership of a professional association such as the Spanish API (Agente de Propiedad Inmobilaria), the British NAEA (National Association of Estate Agents), or FOPDAC (Federation of Overseas Property Developers, Agents, and Consultants).

•  Look for an agent that clearly establishes his fees on his web page. In Spain, agents usually charge around three per cent to the buyer - as well as the seller. VAT is charged at 16 per cent. Some British agents operating in Spain charge much more.

•  Be careful when signing contracts with the agency itself - rather than the seller. Some less than honest agents will try to sign a contract of sale with you the buyer, and another contract of purchase with the seller. The objective of this complicated process is to hide the real prices and create an instant profit for the agency. While morally dubious, this practice is legal and widespread. There should be an exceptionally good reason why you and the seller do not both sign the deposit contract in person.

Finally, the agent's attitude to using a lawyer can tell you something about his, or her, way of doing business. While it is true that most Spanish buyers do not use a lawyer to handle a purchase, this is no reason for a foreign buyer not to do so. Remember, as a foreign buyer you are unlikely to understand the contract, the legal process, or the system of property registration and stamp duties.

--------------------------------------------------------------------------

For more information on Valencia and our range of property go to:

www.rawlinsholden.co.uk or in Spanish at www.rhinmobiliaria.com

--------------------------------------------------------------------------

For more news and views on Valencia property visit:

http://valenciapropertymen.blogs.com

Web www.rawlinsholden.com www.valenciapropertymen.blogs.com