Buying industrial property in Spain can take a lot of hard work. In the last few years, private investors, syndicates and business owners from all over the world have realized that buying industrial property can result in a huge profit. Struggling economies like Spain do have large tracts of land reserved for industrial use which can be bought up by savvy investors. However, before investing in far-flung countries, it becomes essential to research the local property market, rates, legal restrictions, purchasing restrictions etc that are applicable on foreign investors. Here are a few points that you have to watch out for when you are planning to buy industrial property in Spain.
Itemize your needs
When you require industrial property, you and your company will have basic requirements that are necessary in the property. As a precaution, start by shortlisting your requirements and what you are looking for in the property. Local access, travel facilities, lodging facilities for visiting staff are all going to be required in the near vicinity of the industrial property. The industrial property should have water facilities, electricity connections and a readily available local workforce that you can use as resources in the future. Research the areas in Spain too. We know that the real estate will do most of the work in this aspect but as a buyer, you have to do most of the research yourself too to avoid getting cheated. If possible, list down areas which seem attractive or which already have large industrial properties in close proximity and visit the areas yourself to get an accurate idea of the region.
Real estate agents
Finding the right real estate agent can make or break a deal. When you are trying to purchase property so far off, you have to rely on the real estate agent or the realtor to check the property out and list down several areas for you to view. Choose realtors who have an international foothold as well as a local standing to get you an accurate idea of the real estate market in Spain. Even when you are choosing realtors ensure that you check their references and previous client lists to ensure that there are no negative reviews of the agents.
Legal ramifications
Buying international property is fraught with legal hassles. Usually, realtors are well aware of the legal headaches that they have to deal with but it’s a good idea to read up on this yourself too. A few points you have to watch out for are as follows-
•It’s extremely essential to check the Nota simple informative that is registered with the local Property Office. This document will list any outstanding debts or loans on the property. It will also list the property and it assets in great detail. This will assure you that you are getting exactly what you negotiated for.
•Pre-agreement before sale is essential. This is a legal document that registers the price for the property and which registers that the buyer has agreed to buy the property from the seller at so and so price in so and so time. A deposit is also paid by the buyer. This protects the seller if the buyer backs out as the buyer then loses his deposit; if the seller backs out they have to pay double the deposit amount. These are also referred to as “documento de reserva”, a reservation contract that will reserve the property for your buyer as he is serious about the purchase. After this, the buyer will have to sign a “contrato privado de compraventa” or a purchase contract which is almost the same as the pre-agreement.
•The final contract is referred to as the “escritura de compraventa” and has to be signed by the property owner, the buyer and the lawyer in front of legal witnesses and a notary. Payment can be done by international transfer, drafts or checks. The deed then has to be registered at Registro de la Propiedad to make it legal.
We hope that these few simple tips will help you in finding the right industrial property for your requirements. Please ensure that you research the legal agreements that you are signing before purchase with your personal lawyer, an international lawyer as well as a real estate firm that deals with international business deals. Paying these fees will just ensure that you are not getting cheated and you are getting the right property for your industrial needs.
