Estate Agents : Spain

Clearly the estate agent on the one hand has been instructed by the vendor to offer a property for sale, on the other hand a potential buyer also trusts him to ensure the deal is fair and the property is worth the asking price. He has a duty therefore to both buyer and seller and it could be argued an estate agent in truth, by acting impartially for both parties has a dilemma, and clearly a conflict of interests exists.
Equally he has also his own interests to consider, by bringing buyer and seller together he earns his commission. A cynical person might be forgiven for suggesting the estate agent in reality has only his own interest at heart.

Whatever you may think about the ethics of it all at the end of the day, it may be reasonably accurate to assume that at best a buyer should never expect to receive more than 50% of an estate agents loyalty or consideration.

Lots of people deal in property in Spain, we already mentioned the API's who are still strong and form the biggest network of agents in the Country. They are governed by a code of conduct and have professional indemnity insurance to cover any kind of errors or improper practices. For this reason they are probably the most respected group in the business. There are estate agents belonging to other European Associations who again have some credence and respectability. Generally speaking the ones to be wary of are those without any allegiance to any association. That is not to say that anyone operating in his own right should not be trusted, there are some very honourable people amongst them. The trick is to sort the good ones from the bad ones, which is not an easy task.

To be avoided at all costs are the BB's (back-hander brigade). These people are everywhere, plausible, friendly, convincing and looking to make a fast Euro at every opportunity. They hang around hotels and bars watching and listening, searching for foreign people who are obviously in Spain on a property-viewing visit. They also have a trick of looking for people coming out of estate agents offices, following them until an opportunity arises to introduce themselves; a helpful English speaker who just happens to know of special, great-bargain dream house. These people often have an arrangement with an unscrupulous estate agent who will add a bit to the price to pay off the BB man.

On the subject of property prices, with so many agents in the business, few vendors give exclusivity to one agent. Consequently the same property can be found offered for sale by dozens of different agents, and the prices can vary considerably from agency to agency. Commission rates are rarely less than 5% and can often be as much as 15% or more, so it's worthwhile shopping around before making a rash decision.

Whichever selling agent you use, whichever property you decide to purchase do not sign or agree to anything!

It is very, very important the buyer should have an independent professional to represent his interests and his interests alone. A lawyer retained by the purchaser will, if he is responsible and honest, have no conflict of interests and devote his time to the interests of his client one hundred percent. Most foreign buyers are totally ignorant of the property conveyance laws in Spain and rely on others to advise them. And there are plenty of BB's around to do just that. They will offer their advice freely and tell you exactly what you want to hear. More often than not the "BB adviser" isn't qualified competent or informed and therefore totally incapable of giving sound advice.

Prudent buyers enlist the services of a lawyer to ensure that the property they are purchasing is free of liens and encumbrances. And this is the correct course to take but there is something else to be checked prior to engaging the lawyer.