To buy a house from the Bank has the big one advantage that they are open to price reductions and negotiations.
In Madrid, the number of Public Auctions of Houses is 1005 so far this year. Highest number of the last 5 years.
Some banks that are selling properties: Banesto, BBVA, CAM, Caja Cantabria, Ibercaja, Unicaja, Caja España, Caja Murcia, Caja Granada, Caja de Castilla La Mancha, Caja Duero, Caixa Tarragona, Grupo Santander, Caja Sol o Caja de Extremadura. You can find their offers in their websites, showing surfaces, location, prices…
Additional payments to the price of the house would be: Notary deeds, Registration in the Land Registry, Local Increase Value Tax, Transfer Tax or VAT.
Properties are sold by the Bank with existing legal, planning and registry conditions… Banks are not liable for any loan or encumbrance the apartment may have so.... it is important to have a legal advisor for the check of the legal status of the unit. These charges or legal issues can also be a way to negotiate the price down in your favour.
Banks usually have Real Estate agents to show the properties, in order to formalise the offer after the visit, Banks generally have a simple form that is generally available in their websites.
The properties that Banks are trying to sell come from two different ways:
1) Failed public auctions: if a property cannot be sold in public auction for more than the 70% of the market price, the Bank can keep it for the 50% of this.
2) Individuals who give flats to the Banks as payment for the remaining mortgage loan. Once the apartment is sold, Bank gives back to the consumer the part of the mortgage loan that he had already paid.
By Maria L. de Castro
web@costaluzlawyers.es
www.costaluzlawyers.es
"There is no avarice without penalty" (Seneca).
