Spanish Selling Fraud - Danger for Holiday Homes

A real nighmare of a case sprung up this month in Madrid with regards to holiday homes. Spain is such a popular destination for second homes - indeed many of the residents of cities within the country itself have holiday homes within the mainland or on the islands of Spanish territory - why go elsewhere when you have fun, sun and don't have to bother learning another language?!



However, imagine the surprise for the Spanish family who arrived to their holiday home to not only to be greeted by another family occupying their home, but one who had paid good money to be there, too! This is straight out of a nightmare but was the harsh reality for an unlucky family who had fallen victim to identity theft.

It seems that modern day scammers need only a smart car and a sharp suit to dupe unwilling proprty owners into parting with a lot more than just a one-month rent. It has been revealed that in Madrid in this case, organised gangs of theives are prowling holiday residences in search of an annual rent. Once these "professionals" are granted a rental agreement, they use personal details revealed in the rental contract to falsify identification papers and cards, then advertise the property as well below the asking price and make a sale.

As in the majority of countires, any sale must be authorised by a notarty but many notaries simply jot down the identification numbers presented on an identity card, rather than verify the credability of the actual document. This means that in this case in Madrid - by no means an isolated incident - the theives were able to make off with a substantial amount of profit for a few weeks work. Worth the gamble of being caught, you ask? Well, considering the property prices in Madrid versus a monthly rent, I'd say yes.

So what happened to the righful owner, I hear you cry?! Well, beleive it or not, a judge ruled that the "new" owners were not at fault for the fraud, and as the property had entered into the civil property registry, this is "untoucheable". The case was without resolve at the time of writing, but alarm bells ring for those home owners looking to invest in propertes which may not be occupied during long periods of a year.

Luxury Barcelona Real Estate Agency, Modus Vivendi have an outstanding selection of the best properties for sale in Barcelona as well as an ample portfolio of long term rentals in Barcelona.

Spanish Real Estate Glossary - The Legal Stuff

OK, so you've found your dream home, and are ready to take the leap and commit yourself to a new home in the sun - either that, or a hefty mortgage for the next 30 years! After mulling over the various ways a property can be described, it's time for the formal part of the dealings to commence, so here's where you might need another few tips on widening your vocabulary.



Any property up for sale must be "libre de cargas" which literally means "free of charges" but can imply an unencumbered property or that which has no outstanding debts from the seller. A notary will always draw attention to this point, having checked over the deeds to previous sales of a property or the deeds of a new dwelling.

Often, a rental or indeed a purchase of a property will require an "aval bancario" which can mean two different things.In the case of a rental property, this means that the renter can deposit a said amount (which is usually one month's rent, but can be more) into a bank account which cannot be touched for the duration of the rental period. This acts as a safeguard to any landlord who may have invested a fair amount of money on a new property to ensure deadlines are met, but can equally be used by any owner as a legal practice.

In a property sale, the term means something altogether different. An aval in a sale means that a person or persons, literally "vouches" for you in that you will make any repayments on a mortgage and has to offer either a cash sum , or another fully unencumbered property or part of said property as a guarantee in case payments are missed. This typically happens with first time buyers, and is standard practice if a first time buyer (or often second, or third) has little or no down payment towards their desired property purchase.

As mentioned, a "deposito" refers tom a down-payment that a potential buyer has to offer in exchange for a home loan/mortgage on a property.

When you hear the word "arras" this refers to an amount of money which is given to an owner of a property from an individual or group who has the intention of buying a property as an initial commitment for the sale. This is typically a percentage of the total price of the property and is used as a measure of trust, severity and commitment towards the sale of a property. Once "arras" are given, a property is taken off the market and each party establishes a given time to which the sale must materialise - to the contrary, the seller is legally entitles to retain the amount given in arras. This is a serious part of any sale and must not be taken lightly. Both parties sign a "contrato de arras" which is a legally binding document.



The "fecha de firma" of the "date of the signing" is the date programmed for the signing over of the deeds as a legal procedure and is when the potential buyer becomes the new owner. This date is usually set in the "contrato de arras" (see above) and cannot be exceeded without penalty. If both parties agree, this date can be extended without penalty.


Finally, on the day you will receive the keys to your new home, you will stand before a notary or "Notario" who will (very quickly) review the past deeds to a property (known as the "escrituras", share details of the general "compra-venta" (sale of a property) and then detail separately, the conditions of any home loan/mortgage which is to be initiated by an accompanying financial entity. This process can take place either in the notary's offices or the offices of the bank/building society ("caja") depending on each preference/proximity. After a week or two, and after application of the deeds within the property registry "registro de propiedad" is complete, the buyer and seller can collect a "copia simple" (draft copy) of the deeds which are often necessary to begin life in a new property such as signing up for utility bills, etc., accrediting change of address, etc.

It is very important to have documentation on the day of a signing over of deeds, and often is better to have local documentation if possible. For example, in Spain a national identification document (DNI, or NIE for foreigners) is proof of identification. Be aware that although a Passport is also a widely accepted form of identification, the document does not necessarily retain the same serial number upon renewal, which may present problems of identification within documents later in life. NIE or DNI is always the same for a person for the duration of their life under Spanish law, meaning this is easily the preferred option, if at all possible.


If you don't fancy your chances against such possible complications, and would rather a proessional take care of things fro you, then contact Luxury Barcelona Real Estate Agency, Modus Vivendi, who have an outstanding selection of the best properties for sale in Barcelona as well as an ample portfolio of long term rentals in Barcelona. Their professional service will ensure you are always in the know about the process of buying or selling, and will not have the wool pulled over your eyes.

Spanish Real Estate Terms You Need to Know

Moving to a new country and a new city is a great experience. Nerves and excitement often come in equal packages, and it's completely normal to worry about such things as housing - especially if it's up to you to find the place you're going to be staying in for the foreseeable future. The language barrier can often pose a problem when you start your search for a new home, and sometimes a Spanish-English dictionary will be of little use when embarking on the Real Estate world in Barcelona.

Coupled with the fact that the city is the capital of Catalonia - so therefore has two official languages; Catalan and Castillian Spanish - many Real Estate terms have nothing to do with the literal meaning of the word you might find in a dictionary. Here's a little list to help you decipher those all-important terms within the city centre itself.



First up is a simple one. Moving into the metropolis that is Barcelona, it's likely you'll be staying in an apartment or a flat. This is translated into "Apartamento" or "Piso" - no major issues there. Apartments are found in blocks which can vary in size and age - old town properties can bare little resemblance to brand new properties, with installations and communal areas such as stairwells in need of repair. However, history is on your side, and an authentic apartment in an old town block oozes character and charm, whereas new blocks can be bare and empty. Apartments can vary in size and "Studios" are those on the smaller size, often with one bedroom, sometimes in open plan and rarely reaching above 35m2.

If you see a "Duplex" advertised, this refers to a property which has one entrance, but is distributed over two floors - more often than not by an internal staircase. Many upper floors in apartment blocks are constructed with higher ceilings than those floors which prop them up, meaning it's easy to add another level - be it for a bedroom, a living room or simply an "internal balcony". The difference between a two-storey property and a duplex is basically that it occupies the same floor space as an apartment, whereas a two storey property allows for the construction of the staircase.

Spanish "Lofts" are contrary to the English translation and are not a space directly below the roof of a house with sloping walls! Quite the opposite. Lending itself from 1950s New York a "loft" is a very open space with large windows, very few partitions and generally very little has been done to a somewhat industrial construction (such as a warehouse) to make it hospitable. Think old factories and warehouses converted into large, open dwellings, with ceiling to floor windows. The term is abused slightly in Barcelona to refer to any space which has few partitions - and on any level within a block, so that's something to be aware of.

"Local" refers to the space on the ground floor of a building which is typically destined for commerce - be it a shop, restaurant, bar or cafe. It's the street-level front to the building - most typically having one either side of the apartment block's main entrance. Locales are usually large, open spaces, but often have difficulty in obtaining a legal living permit, known as a "cedula de habitabilidad" - given the fact that they are destined towards retail or hospitality. If you fancy looking for one of these properties, ensure you ask for an up to date permit.

Finally, we come to "Bajos" which literally translates as Ground Floor, but can differ from a "Local" as there can be many bajos within an apartment block - some interior some exterior - whereas locales generally occupy either half or whole of the ground floor of an apartment block. Bajos are also usually accessed from the same main apartment building door, rather than an exclusive entrance, as locales are. Bajos tend to be a little darker in terms of natural sunlight given the proximity of buildings within the city centre, but can often make up for this deficit with fantastic terraces which stretch the same length and breadth of the living space itself.

If you're having trouble deciding on your favourite type of living space, or fancy checking out a few of each, then contact Luxury Barcelona Real Estate Agency, Modus Vivendi, who have an outstanding selection of the best properties for sale in Barcelona as well as an ample portfolio of long term rentals in Barcelona.

Success at Barcelona Meeting Point 2009

Last weekend saw the closing of the Barcelona Meeting Point Real Estate Event, and the organisers have praised attendances and labelled it a success. Enrique LaCalle, the event organiser and president, announced that over 150,000 people attended the event, which - perhaps surprisingly - is 20,000 more than last year. Meeting Point showcases many public and private companies in the construction sector, and LaCalle also added that negotiations between businesses and the public are expected to reach a value of around 2100 million Euros.



Attendances were high for both the professional and public parts of the event, with many people eager to hunt for a bargain. The Real Estate Process has changed dramatically in the past few years, with the market swaying over in the buyer's favour. Such was demand around 4 years ago, that apartments were snapped up by everyone and no reservations could be made, for example. Nowadays, both the buyers and sellers know that there is no queue of people after one property with the market being saturated with both brand new properties as well as those which come up for sale and are occupied previously. It's certainly a great time to be looking for a property in Barcelona.

Barcelona Real Estate agency Modus Vivendi have a selection of Properties for sale in their portfolio, and also offerLong Term rentals in Barcelona too.