Property clinic
Expert advice on how to protect yourself legally when buying abroad
building investments
PROPERTY CLINIC
WE POSE YOUR QUESTIONS TO OUR INTERNATIONAL PROPERTY EXPERTS FOR THEIR TOP TIPS ON BUYING OVERSEAS
Martin Roberts presents BBC1’s property auction show Homes Under The Hammer, shown daily at 10am and 2.40pm. He also runs an independent overseas property consultancy, PropertyQC. +44 (0)800 977 4517; propertyqc.com
HOW DO I PROTECT MYSELF LEGALLY WHEN BUYING ABROAD?
In a recent survey, concern about the legal system was by far the biggest reason for people not buying abroad. The answer is simple – surround yourself with professional advisors who can protect you from making costly mistakes. There are now several UK law fi rms that specialise in all the legal aspects of buying. They will work alongside lawyers in the country you are buying in to ensure a safe transaction. That said, some countries have a more established property purchase infrastructure than others. In many of the emerging and former communist countries, the concept of ‘owning’ land and property is still in its infancy, and the system of land registry can be a little chaotic.
Canada, America and Hungary, for example, have legal systems that are heavily weighted towards the protection of the purchaser. If you’re purchasing a property with the intention of letting it out, make sure there are no restrictions in your contract that prohibit you doing this, and that you are buying on a development and in a location where there is a good demand for rental property. You should also make sure that your buildings and contents insurance cover you for renting. Recommended specialist overseas property law fi rms include John Howell & Co (+44 (0)20 7420 0400; www.lawoverseas.com) and The International Property Law Centre (+44 (0)870 800 4565; www.internationalpropertylaw.co.uk).
David Cox is the director of overseas property investment specialists, Property Frontiers, and author of Where to Buy Property Abroad: An Investor’s Guide. +44 (0)1865 202700; propertyfrontiers.com; aninvestorsguide.com
HOW DO I PROTECT MYSELF LEGALLY WHEN BUYING ABROAD?
I would recommend employing a UK-based international law fi rm. That way, you will fi nd communication easier, as well as being assured of British standards of practice. Having said this, you should also ensure that the lawyer is knowledgeable in the market in which you are buying. This isn’t too diffi cult, as there are now several UK-based fi rms with wide-ranging global expertise. They may be more expensive then a local lawyer, but the added security is worth paying for and could save you thousands of pounds in the future.
Additional security can be gained by buying through an estate agent that is a member of the Association of International Property Professionals (AIPP), which was established earlier this year to provide consumer protection within the international property industry. Using an AIPP member company provides both further security for buyers and a straightforward means of recourse should the agent behave unscrupulously. Members will display the AIPP logo so it is worth looking out for.
If you sign up to a guaranteed rental agreement, have your lawyer check the terms, as they will signifi cantly affect your income, its security and the conditions under which you can enjoy the use of your own property.
