There has been a lot of talk in social media and websites regarding gazumping in the Spanish property market, so I thought I would take a little time to clarify for the confused and inform for those needing further explanation.
Gazumping is the practice of a vendor reneging on an agreement to sell a property to one purchaser in favour of accepting an improved offer due to monetary considerations , more favourable time-scale, a more secure (safe) offer.
In Spain we have a very simple and easy solution to ensure that gazumping never occurs. If you have a competent agent they should be able to explain to you how this simple system works and gazumping should be something you never need to worry about.
Unlike the UK where a handshake or verbal agreement can sometimes be acceptable, in Spain we have a much more robust solution to ensuring both buyer and seller are committed to the purchase/sale.
In order to secure the property of your dreams there are two simple steps you need to follow should you find your perfect property; pay a reservation deposit and sign a reservation contract.
1. RESERVATION DEPOSIT.
In order to secure your dream property you will pay YOUR lawyer (not the seller, estate agent or sellers lawyer) a 3000€ reservation deposit. The reason that you pay this to your lawyer is to notify the vendor that you are serious about purchasing the property. The 3000€ will only be given to the vendor when their lawyer proves to your lawyer that the property is fully legal and correct to proceed. This deposit is non refundable once paid, so if you change your mind you have lost the deposit. To avoid gazumping the vendor if they wish to cancel the sale will need to return the deposit plus the same amount again as compensation.
2. RESERVATION CONTRACT.
Again, to legally secure the villa and have it removed from the market a reservation contract will be drawn up by the lawyers. This details all parties involved, the property, location, completion dates and agreed price. This contract will be signed by all parties
With the contract signed and deposit paid you are secure in the knowledge that the property is yours and will be removed from the market.
The result of the above........ NO GAZUMPING.
Do not leave your choice of property agent to chance. Go where the informed buyers choose to go... Hondon Valley Homes.
If you are not satisfied with the advice or service you are receiving from your agent, you can be assured of a warm welcome when you come to see Hondon Valley Homes. Our young, yet experience team will guide you through the buying process in an informed, relaxed and friendly manner. We work with great lawyers, bankers, architects and financiers. Just ask around..... we don't sell more properties than any other local agents, by looking to the past as we only look to the future.
We live in Hondon, We work in Hondon, We love HONDON.