Working in the Sotogrande real estate market means I meet vendors and buyers from many different nationalities. I have found that attitudes to property surveys and valuations can differ depending on different nationalities. Some view the survey report as information on the physical status of the property, others consider it a valuation of the property, and I have even had clients who see it as the legal due diligence on the property. A common denominator here is that a property is likely to be one of the most expensive purchases anyone will ever make, so you want to make sure you get it right. Generally, a mortgage company will require a property survey (“tasación” in Spanish) to make sure the property is worth the amount of money they’re providing in the loan. The bank will send their own valuer, and the report will be undertaken for the bank, not for you. It’s not a detailed survey of the property and won’t tell you what repairs or maintenance you might need to carry out.
LEGAL DUE DILIGENCE
The legal due diligence should be undertaken by your lawyer. A good lawyer would check at the Property Registry all details of the property and its ownership; if there are any mortgages on the property (and if there are that they will be discharged on completion); if the property is burdened with rights of occupation (Rented on a long-term base); if there are any rights of way, if there are any town planning requirements or impositions. Then at the Town Hall check to ensure that the property described at the Town Hall is the same as the one at the property registry. That the annual local property tax (IBI) is up to date. That public fees and rates are also up to date. That the first occupation license has been issued in respect of the property and that the property has adequate planning.
PROPERTY SURVEY
A property survey is an evaluation and assessment of the condition of the property. Surveys should highlight any issues which may not be obvious when viewing the property. Any hidden defects such as structural damage, wet or dry rot, or problems with the roof. These sorts of problems often get worse over time and could be an expensive problem to fix after you have moved in. Other checks should include the condition of machinery such as the boiler, and central heating system, or underfloor heating.
A property survey report that shows there are defects doesn’t necessarily mean you shouldn’t purchase the property. After all most surveys will find some defect that requires attention albeit small. However, defects can be pointed out to the seller, and the sales price agreed can reflect having these repairs done yourself.
A proper survey will identify any repairs that may be essential and could potentially save you much larger sums of money in the future.
Charlie.
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