No one would dream of buying a home in the UK without employing a lawyer to protect their interests and oversee the purchase. Which makes it baffling how British people even today continue to buy abroad without independent legal representation, and in so doing risk falling victim to a number of pitfalls and losing large amounts of money.
Saving on conveyancing fees might seem tempting at the time of purchase but rest assured, what you stand to lose if an overseas property transaction goes horribly wrong, often due to something preventable, is far less attractive. Here are some more points to consider:
Don’t kid yourself that you’re an expert on overseas property law.
You may well have bought and sold numerous properties in the UK and know the conveyancing process here inside out, but once you leave these shores things tend to happen differently. It’s likely the locals wherever you are buying don’t use a lawyer when buying property, but they’re familiar with the country and its laws, and may well have friends and family to advise them and protect their interests. The only way you can protect yourself as a foreigner is to use an English-speaking lawyer who is familiar with the local legal system.
Only employ an INDEPENDENT lawyer.
When you choose a lawyer for your property purchase, always opt for a legal company that is not affiliated in any way to a developer or property agent. You may ask an estate agency for a couple of suggestions of local lawyers – and back this up with testimonials – but if they steer you towards a particular lawyer, alarm bells should ring. The developer you buy from may encourage you to use their “in-house” legal team for a reduced fee – NEVER choose this option.
A notary is NOT a lawyer.
In the UK, notaries play no part in the conveyancing process, with the vendor and buyer both employing their own independent lawyer – always adopt this approach when you buy abroad. While legally trained, a notary is employed by the state to oversee the paperwork and tax obligations involved with a property transaction, and to rubber stamp the contracts.
Your lawyer should check EVERYTHING.
When you’re buying abroad, it’s likely you’ll have to sign a number of contracts and documents – none is too insignificant for your lawyer not to check before signing. For example, a number of buyers have been caught out by unwittingly signing non-refundable reservation contracts during viewing trips – five minutes spent faxing a contract to a lawyer to check over could have avoided this.
Think about inheritance NOW.
Another way a lawyer can help you is by advising on inheritance. Many countries have forced heirship laws, which mean you could be forced under local law to pass on your property to certain members of your family – something you as a British citizen may not agree with. Your lawyer will be able to advise you on ways of avoiding – or minimising the effect of – such laws, as well as minimising inheritance tax, and talking about this before you complete on a purchase usually saves a lot of hassle in the future.
For details of overseas property for sale, visit the overseas listings on Rightmove Overseas. One way to save money when buying or moving abroad is to use a currency specialist when transferring your pounds into a foreign currency. For more information on this, contact Smart Currency Exchange.
For assistance finding a reputable international law firm, contact The Overseas Guides Company by emailing: info@overseasguidescompany.com