| How to pay a deposit on a business in Benidorm and Spain Plus advice regarding guarantees (Aval) |
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| Bars for sale in Benidorm - Albir Bars for sale - La Cala Finestrat bars for sale - Benidorm Restaurants For Sale |
| Spain Business Guide Paying a deposit on a business Business Transfer Agent Benidorm & Costa Blanca Spain FREE advice for everyone |
People are still arriving in large numbers. They have some money in
the bank and are going along to the first Agent they meet to buy a
small business and handing over deposits with no legal backing.
IMPORTANT NOTES
1. Agents have no right to hold or demand deposits
2. Contracts offered in English have no legal validity in Spain
3. Only ever pay a deposit to a Lawyer to be held in a client account
4. If you pull out after signing contracts you will forfeit your deposit
5. If you never signed a legal contract your deposit must be returned
6. A simple receipt for a deposit is not a legal binding contract
7. If you hand over a deposit without a proper contract it will take you
years to get to court and it will cost more than the original deposit in
legal costs. This is common please do not be one of these people!
8. Agents will usually tell you anything to make a sale!
9. Never sign or pay anything without independent legal advice.
MANY AGENTS WILL TELL YOU THAT YOU DO NOT NEED A SOLICITOR
Always question this advice!
Usually means they are hiding something such as Licence problems!
Would you buy back home with no Solicitor?
We recommend Express Legal an SRA regulated English Solicitor.
Friendly good value legal services, with a free first consultation.
They will check business contracts for you from just 295€
Peace of mind for a small outlay.
People are still parting with hard earned cash without any regard for the legalities of
what they are doing. The number of people consulting lawyers after making this biggest
mistake has increased unbelievably over the past few years. (10 in Benidorm in 2009)
This message is simple DO NOT BUY anything without seeking legal advice.
The cost of employing a lawyer could save you thousands.
Deposits paid, without a receipt or a fair contract, are being handed to either an agent,
seller, landlord or developer direct - DO NOT DO IT
Quite frankly, if you get caught because you didn’t want to pay Lawyers fees, then you
deserve all you get. You will probably never see the deposit again or it will cost you
thousands in legal fees to sort out the mess. Remember Agents have no authority to ask
you for any money the purchase is between you and the seller not the agent.
The correct way to pay a deposit in Benidorm (or anywhere for that matter) is direct to
your lawyers client account who will hold onto the payment until the completion of
contracts and only then will it paid to the seller or landlord. If there is a dispute it will be
kept until resolved and then either returned to the purchaser or in the case of the
purchaser being in breach of contract paid to the seller or landlord. NOTE the term breach
of contract if you hand a deposit to anyone without a contract and pull out they must return
the money paid as there was never any contract in place, and provided you can prove in
writing that a deposit was paid you have a good case to win in a court of law. This is
however expensive and should have been avoided.
Deposits are not refundable if you pull out only after the contract has been signed. This is
why you must use an independent lawyer.
NOTE ON AN "Aval"
PAYING A BOND / GUARANTEE TO A LANDLORD
Many Spanish landlords will request 6 or even 12 months rental bond / deposit especially
when renting or leasing to foreigners. NEVER simply hand this over to be kept in the
landlords bank account OR to an agent as you will have no way of knowing if the money
has been spent or even worse kept by an agent.
The correct way to pay such a bond is in the form of an "Aval". The amount is paid by you
and kept by a nominated bank and held as a guarantee against your contractual
obligations to pay the rent. This cannot be touched by anyone and is returned at the end
of a contract or in the event of a default by the tenant paid to the landlord in lieu of rents
owed.
Next page - Cheap bars for sale in Spain - Be careful
the bank and are going along to the first Agent they meet to buy a
small business and handing over deposits with no legal backing.
IMPORTANT NOTES
1. Agents have no right to hold or demand deposits
2. Contracts offered in English have no legal validity in Spain
3. Only ever pay a deposit to a Lawyer to be held in a client account
4. If you pull out after signing contracts you will forfeit your deposit
5. If you never signed a legal contract your deposit must be returned
6. A simple receipt for a deposit is not a legal binding contract
7. If you hand over a deposit without a proper contract it will take you
years to get to court and it will cost more than the original deposit in
legal costs. This is common please do not be one of these people!
8. Agents will usually tell you anything to make a sale!
9. Never sign or pay anything without independent legal advice.
MANY AGENTS WILL TELL YOU THAT YOU DO NOT NEED A SOLICITOR
Always question this advice!
Usually means they are hiding something such as Licence problems!
Would you buy back home with no Solicitor?
We recommend Express Legal an SRA regulated English Solicitor.
Friendly good value legal services, with a free first consultation.
They will check business contracts for you from just 295€
Peace of mind for a small outlay.
People are still parting with hard earned cash without any regard for the legalities of
what they are doing. The number of people consulting lawyers after making this biggest
mistake has increased unbelievably over the past few years. (10 in Benidorm in 2009)
This message is simple DO NOT BUY anything without seeking legal advice.
The cost of employing a lawyer could save you thousands.
Deposits paid, without a receipt or a fair contract, are being handed to either an agent,
seller, landlord or developer direct - DO NOT DO IT
Quite frankly, if you get caught because you didn’t want to pay Lawyers fees, then you
deserve all you get. You will probably never see the deposit again or it will cost you
thousands in legal fees to sort out the mess. Remember Agents have no authority to ask
you for any money the purchase is between you and the seller not the agent.
The correct way to pay a deposit in Benidorm (or anywhere for that matter) is direct to
your lawyers client account who will hold onto the payment until the completion of
contracts and only then will it paid to the seller or landlord. If there is a dispute it will be
kept until resolved and then either returned to the purchaser or in the case of the
purchaser being in breach of contract paid to the seller or landlord. NOTE the term breach
of contract if you hand a deposit to anyone without a contract and pull out they must return
the money paid as there was never any contract in place, and provided you can prove in
writing that a deposit was paid you have a good case to win in a court of law. This is
however expensive and should have been avoided.
Deposits are not refundable if you pull out only after the contract has been signed. This is
why you must use an independent lawyer.
NOTE ON AN "Aval"
PAYING A BOND / GUARANTEE TO A LANDLORD
Many Spanish landlords will request 6 or even 12 months rental bond / deposit especially
when renting or leasing to foreigners. NEVER simply hand this over to be kept in the
landlords bank account OR to an agent as you will have no way of knowing if the money
has been spent or even worse kept by an agent.
The correct way to pay such a bond is in the form of an "Aval". The amount is paid by you
and kept by a nominated bank and held as a guarantee against your contractual
obligations to pay the rent. This cannot be touched by anyone and is returned at the end
of a contract or in the event of a default by the tenant paid to the landlord in lieu of rents
owed.
Next page - Cheap bars for sale in Spain - Be careful
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