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| 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 |
NEVER EVER pay deposits direct to an agent. Anyone can be an agent and
sadly many (not all) have no ethics when it comes to buyers money. People are
still arriving with money in the bank and are going along to the first agent they
meet to buy a bar in Spain and handing over deposits with no legal backing.
Every month we meet people being fleeced on deposits after pulling out of a
"dubious" sale agreement. As agents our fees should be paid on the day of
completion by the seller and not in the form of your hard earned deposit.
IMPORTANT RULES WHEN BUYING A BAR IN SPAIN
1. NEVER EVER PAY THE 10% DEPOSIT TO AN AGENT
2. Agents have no right to demand or hold deposits. A sale is between you and
the seller and your lawyer and has nothing to do with an agent.
3. Contracts offered in English have no legal validity in Spain
4. Only ever pay a deposit to a Lawyer to be held in a client account
5. If you pull out after signing contracts you will forfeit your deposit
6. If you never signed a legal contract your deposit must be returned
7. A simple receipt for a deposit is not a legal binding contract of sale
8. If you hand over a deposit to an agent without a proper sales 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 get caught out in this way!
9. Agents will usually tell you anything to make a sale!
9. Never sign a deposit contract provided directly from an agent.
10. It is a buyers market so don´t be pushed into paying a deposit, you
will not loose the bar to another buyer, despite what you may be told.
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 or unpaid bills! Would you buy back home without using a
Solicitor? Always remember also that a Gestoria is NOT a Solicitor.
IF YOU ARE OFFERED AN "English Gestoria" TO DEAL WITH A SALE
MAKE SURE THEY KNOW WHAT THEY ARE DOING!
Anyone can offer these services, but not all are adequately qualified. Some
people operating as a Gestor are not trained to deal with the complicated official
paperwork in Spain and do not run proper checks to ensure bills are up to date,
leaving buyers open to costly unpaid water bills, rubbish bills etc left by the
previous owners and even the owners before them!
We recommend Express Legal who have an SRA regulated English
Solicitor and a legal team with plenty of local knowledge. Friendly good
value legal services, with a free first consultation. They will check bar rental
contracts for you and offer Complete legal service for buyers from only 750€
including setting you up in the Tax system and arranging NIE´s plus checking
licences and ensuring your business is free of all debts.
Quite frankly, if you get caught because you didn’t want to pay Lawyers fees, then you will
almost certainly end up with unforseen costs that exceed the legal fees charged by a lawyer.
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. Agents fees are paid by the seller or lanlord.
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 or sale 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.
If you are requested to pay a "bond" direct to a landlord to protect their interest for unpaid
rents, damage to the building etc. You will have no way of knowing if this will be returned
when you leave, or even spent by the landlord.
Next page - Cheap bars for sale in Spain - Be careful
sadly many (not all) have no ethics when it comes to buyers money. People are
still arriving with money in the bank and are going along to the first agent they
meet to buy a bar in Spain and handing over deposits with no legal backing.
Every month we meet people being fleeced on deposits after pulling out of a
"dubious" sale agreement. As agents our fees should be paid on the day of
completion by the seller and not in the form of your hard earned deposit.
IMPORTANT RULES WHEN BUYING A BAR IN SPAIN
1. NEVER EVER PAY THE 10% DEPOSIT TO AN AGENT
2. Agents have no right to demand or hold deposits. A sale is between you and
the seller and your lawyer and has nothing to do with an agent.
3. Contracts offered in English have no legal validity in Spain
4. Only ever pay a deposit to a Lawyer to be held in a client account
5. If you pull out after signing contracts you will forfeit your deposit
6. If you never signed a legal contract your deposit must be returned
7. A simple receipt for a deposit is not a legal binding contract of sale
8. If you hand over a deposit to an agent without a proper sales 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 get caught out in this way!
9. Agents will usually tell you anything to make a sale!
9. Never sign a deposit contract provided directly from an agent.
10. It is a buyers market so don´t be pushed into paying a deposit, you
will not loose the bar to another buyer, despite what you may be told.
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 or unpaid bills! Would you buy back home without using a
Solicitor? Always remember also that a Gestoria is NOT a Solicitor.
IF YOU ARE OFFERED AN "English Gestoria" TO DEAL WITH A SALE
MAKE SURE THEY KNOW WHAT THEY ARE DOING!
Anyone can offer these services, but not all are adequately qualified. Some
people operating as a Gestor are not trained to deal with the complicated official
paperwork in Spain and do not run proper checks to ensure bills are up to date,
leaving buyers open to costly unpaid water bills, rubbish bills etc left by the
previous owners and even the owners before them!
We recommend Express Legal who have an SRA regulated English
Solicitor and a legal team with plenty of local knowledge. Friendly good
value legal services, with a free first consultation. They will check bar rental
contracts for you and offer Complete legal service for buyers from only 750€
including setting you up in the Tax system and arranging NIE´s plus checking
licences and ensuring your business is free of all debts.
Quite frankly, if you get caught because you didn’t want to pay Lawyers fees, then you will
almost certainly end up with unforseen costs that exceed the legal fees charged by a lawyer.
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. Agents fees are paid by the seller or lanlord.
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 or sale 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.
If you are requested to pay a "bond" direct to a landlord to protect their interest for unpaid
rents, damage to the building etc. You will have no way of knowing if this will be returned
when you leave, or even spent by the landlord.
Next page - Cheap bars for sale in Spain - Be careful
