# Is buying a bank repo safe?



## Metalpetal (Jul 11, 2015)

Hi folks - only 3 weeks until we're out on Murcia to start our property search! A couple of the places we're possibly going to look at are Bank repo properties. Is it 'safe' to buy one of those?

We'll check out the obvious stuff, such as whether the other apartments in the complex are well occupied, and that the complex is complete, with all utilities in place etc. We're looking at places in fairly established apartment complexes though, and they look pretty finished. One place in particular is clearly just an individual apartment that was repossessed, as the complex as a whole looks busy and I've found several rentals there when conducting some online research!

But I don't know if the buying process is trickier if it's a repo? Or perhaps it's easier! In that I assume they have all of the finance history readily available! And it's more of a 'business transaction' than buying from an individual?

Thanks
Pamela


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## Horlics (Sep 27, 2011)

It's as safe as buying a non-repo. Get legal assistance that isn't recommend by the agent or owner (bank) and you'll be as safe as it is possible to be.


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## Metalpetal (Jul 11, 2015)

Great thanks for the reassurance  I have no intention of using anyone linked to the seller/agent - trying to find a good independent surveyor, so we can get things moving if we find somewhere we like! 

P


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## Alcalaina (Aug 6, 2010)

There are two categories of bank repo: one where the property developer borrowed money but went bust before the buildings were sold, and the other where someone bought it and couldn't pay the mortgage.

My only worry about the former would be, if the building work turns out to be substandard, who would be responsible for putting it right. You can't sue a company that's gone into liquidation. But I guess that's the sort of thing your lawyer could check.

In the latter case, presumably the banks would have checked everything before giving the unfortunate previous occupants a mortgage.


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## Pazcat (Mar 24, 2010)

Alcalaina said:


> In the latter case, presumably the banks would have checked everything before giving the unfortunate previous occupants a mortgage.


I don't think they did in the past. Now they do make sure to a point but some of the bank properties we saw were the most illegal of them all and decided to stay away from them.
I have no idea on what the process would be to get the properties to even exist on paper but I guess the bank will just loan you a bit more and it becomes your responsibility.


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## snikpoh (Nov 19, 2007)

Metalpetal said:


> Great thanks for the reassurance  I have no intention of using anyone linked to the seller/agent - trying to find a good independent surveyor, so we can get things moving if we find somewhere we like!
> 
> P


Surveyors don't exist in Spain. You have to use an architect to do the surveying for you.


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## Maureen47 (Mar 27, 2014)

We nearly signed on the dotted line for a bank repo and didn't know until the last minute it was not legalised , the bank would have been happy to sell it to us and for us to go through the process of legalisation , this was a cash purchase , we didn't g ahead on it. You need to take care and as others have advised get some legal help , its well worth the money to know all is ok.


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## marcia burrell (Aug 14, 2015)

Spain does have independant surveyors, please take a look at surveyspain website.
Excellent information UK accredited surveyor working in spain for many years.


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## marcia burrell (Aug 14, 2015)

Whether buying a bank repo, or resale property you must ensure that the propery has First occupation licence. An independant surveyor or architect , lawyer can check this before making or signing any reservation contracts.

It is not illegal to sell a property without FOL !


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## baldilocks (Mar 7, 2010)

marcia burrell said:


> Spain does have independant surveyors, please take a look at surveyspain website.
> Excellent information UK accredited surveyor working in spain for many years.


There only seems to be one person mentioned, campbell xxxx. Is he qualified to work in Spain, have his qualifications been homologated? The fact he is possibly qualified in UK doesn't matter one iota if his qualifications have not been accepted in Spain. We get "qualified" plumbers and electricians, etc. who may be qualified in UK but don't know damn all about Spanish installations, nor are they working here legally.


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## xabiaxica (Jun 23, 2009)

marcia burrell said:


> Whether buying a bank repo, or resale property you must ensure that the propery has First occupation licence. An independant surveyor or architect , lawyer can check this before making or signing any reservation contracts.
> 
> It is not illegal to sell a property without FOL !


Are you saying that it IS illegal or that it isn't? 
You seem to be contradicting yourself


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## Pazcat (Mar 24, 2010)

Could be a typo.

In Valencia region at least it you can't sell a property without a license of first\second occupation.
This is where I don't know the process that a bank would do, normally the seller needs to organise this but will a bank?


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## snikpoh (Nov 19, 2007)

Pazcat said:


> Could be a typo.
> 
> In Valencia region at least it you can't sell a property without a license of first\second occupation.
> This is where I don't know the process that a bank would do, normally the seller needs to organise this but will a bank?


... are you sure?

Some of the properties we have didn't have the first or second licences - and these are in Valencia/Valencia (communidad and region).


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## Pazcat (Mar 24, 2010)

Maybe I am confusing it with something else, need another coffee I think or maybe there are some exceptions to the rule but there is a law passed in 2007 that is supposed to hold people accountable for selling without one, notaries included. Even if the sale is completed the seller would still be in breach of contract
It could be just for new builds since 2007.

I thought if you close without one the building isn't habitable and you shouldn't be able to get any utilities or realistically be living in it.

Either way it is quite obvious that sales are still going through so maybe it's not illegal.

Very few properties do have one as they expire after 5 years and that is one of the major hold ups because once they have to reapply for the license that is when all the unlicensed work is discovered and the admin mess is quadrupled.


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## marcia burrell (Aug 14, 2015)

It's not illegal to purchase or sell a property without First Occupation Licence !
The buyer just needs to be aware and make an informed decision as to whether they wish to purchase or not.

Buyer beware!


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## Pazcat (Mar 24, 2010)

But if you sell one without a first or second license you can then in retrospect be found in breach of contract and be charged for that. Doesn't sound entirely legal to me.
It's also illegal to live in a house without one and you can be subject to fines.
Also notaries are not supposed to be able to register things to the land registry without it.

Of course this flies in the face of the reality on the ground but the laws seem to be in place at least.

I'd link to what I just read but it's on a rival forum and would likely be removed.


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## snikpoh (Nov 19, 2007)

marcia burrell said:


> It's not illegal to purchase or sell a property without First Occupation Licence !
> The buyer just needs to be aware and make an informed decision as to whether they wish to purchase or not.
> 
> Buyer beware!


Why do you keep saying "First Occupation Licence" - this is only for new builds.

What we're really talking about is "Cédula de Habilitabilidad de Segunda o Posteriores Ocupaciones" surely?


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## Isobella (Oct 16, 2014)

Metalpetal said:


> Hi folks - only 3 weeks until we're out on Murcia to start our property search! A couple of the places we're possibly going to look at are Bank repo properties. Is it 'safe' to buy one of those?
> 
> We'll check out the obvious stuff, such as whether the other apartments in the complex are well occupied, and that the complex is complete, with all utilities in place etc. We're looking at places in fairly established apartment complexes though, and they look pretty finished. One place in particular is clearly just an individual apartment that was repossessed, as the complex as a whole looks busy and I've found several rentals there when conducting some online research!
> 
> ...


You seem to have done your research well. Don't assume a bank repo is not illegal. I don't know murcia but the areas I do know most bank repos aren't bargains, some are but not many.


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## Simon22 (May 22, 2015)

Isobella said:


> You seem to have done your research well. Don't assume a bank repo is not illegal. I don't know murcia but the areas I do know most bank repos aren't bargains, some are but not many.


Agreed, we thought they all would be much cheaper but they are not. Some were but some were dearer than local agents.


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## Metalpetal (Jul 11, 2015)

Yes we're realising they're not all necessarily 'bargains' - especially considering they're usually unfurnished. And there would be other hassles such as utilities having been stopped etc. Most of the places we're viewing this time aren't repos, but we have included a couple that seem too good not to check out! 

Thanks everyone  

P


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