1.- REAL ESTATES AND COMMISSIONS

Your first contact when you decide to buy a property in Spain will almost certainly be the estate agent.

It is very important to know that unlike the UK and Northern European countries in Spain there is no law regulating real estate agents. Anybody may act as intermediary in property sales. This means it is difficult to hold an estate agent responsible when a purchase goes wrong.

There are, however, two professional associations that require examinations and set standards for their members. One of these offers the title of Agente de la Propiedad Inmobiliaria, or API for short. It is necessary to have a degree in Law, Economics or other degree course to get this title. The other is the GIPE, the Gestor Intermediario de Promociones y Edificaciones (at the moment no degree is required to get it). You will do well to deal with an estate agent who holds one of these titles.

Even so, if your Spanish estate agent causes you to suffer loss, either through negligence or honest error, you will have a hard time obtaining any compensation.

Ask your agent if he carries Professional Indemnity Insurance, and, if so, how much. You will probably find out that most real estate agents in Spain have no insurance at all, or only the minimum required.

Ask also if he operates a Bonded Clients Account which is very unlikely in Spain.

In that case it is important not to held any money without the supervision and approval of a layer who can be insured for any possible claims.

A case against the real estate agent in Spain will probably be very expensive and get no return of any deposits.

So make sure that any deposit you make goes into a blocked account where neither party can have access until the sale is closed.

Commissions.:

at this moment of crisis most of the real estate agents in Andalusia, included the tourist areas like Costa del Sol (Malaga) , Costa de la Luz (Huelva and Cadiz) and Costa Tropical (Granada) have reduced their commissions to a percentage varying between three and five per cent of the sale price.

When looking for a property remember that exclusive real state agent is not common in Spain and this means that most properties can be found in two or trree different agents. Look for the cheaper one provided he is trustworthy.