Bank Repossession Property in Spain

When you begin your property search in Spain, I am sure you will see many portals and websites advertising Spanish repossession properties at bargain prices. This could well be a good route for some, but it´s important to understand how the Spanish banks work, and the complexities of buying repossession property. After the world financial crash in 2007/2008 repossession properties were plenty, with many owners hitting a low in their financial status and finding it difficult to maintain mortgage repayments. The banks are obviously keen to try and recoup these losses and offer properties at what may initially seem to be bargain prices, but it is essential that you make certain checks to ensure that the property is a good investment.

Here we have some basic information to help you understand the buying process within the banking system.

Use an independent Lawyer

It is complete madness to embark on buying property in Spain without employing the services of an independent lawyer. Local property laws can vary between Spanish regions and although the banks will have legal representation it is always good practice to have a lawyer represent you who is not associated with the selling party. It is almost certain that electricity and water supplies have been turned off, and in some circumstances it can be problematic getting these reinstated, so your lawyer is vital to investigate this situation with the local utility suppliers.

Check the property

It is more than common that bank repossession properties will be in a state of disrepair, and in some cases some of the appliances, central heating systems and bathrooms may have been partially or totally removed by the previous owners. It is advisable to use a surveyor to obtain a general overview of the property and highlight any structural defects, also he will be able to give you estimated costs to rectify the faults.

How long will it take to buy repossessed property from the bank?

Generally it will take longer to buy through the banks, the final completion will not be able to take place before all paperwork is up to date and available. Banks are notoriously slow with almost all procedures and it could take anywhere from 6 months to 2 years depending on the complexity of the sale and the situation left by the previous owners.


The obvious attraction to buying repossession property is the purchase price, this in some cases can be very beneficial from a financial point, but the journey buying through the bank can be a challenging and time consuming process, and in some cases what initially seems like a fantastic purchase may not be as attractive as you thought with the selling price not that much better than a similar property purchased through a private vendor, in fact it is almost certain that the bank will not negotiate on price the same way as a private seller.

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