# alternative way of selling a property



## choco77 (Nov 24, 2017)

Hi,

My property in Spain is currently up for sale and myself and my family are now renting somewhere else in Spain (due to work commitments). 

We had a reasonable offer on our house which we accepted, however the potential buyers' situation changed and they say they can no longer offer the agreed price. (the offer was only a verbal agreement...no time for deposit to be arranged.)

Apparently now they have offered to pay 70% of the agreed price, with the rest of the balance been paid within an agreed time frame. At this moment, this is all the information we have been given by the estate agent. It would all be drawn up and notarised and obviously solicitors would be employed.

I haven't any personal experience of this kind of agreement so would really appreciate your views and advice. Also, if any member has any experience of selling a property this way I would be very interested in your opinion.

Thank you for your help!


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## Alcalaina (Aug 6, 2010)

And if they never get round to paying the other 30%, how much would it cost you in legal fees?

If I were in your position and wanted a quick sale, I would decline the offer but reduce the price to them by 10 or 15%, take it or leave it. If you're not in a hurry, hold on for the asking price - the property is clearly saleable.


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## davexf (Jan 26, 2009)

Hola 

What you need is professional advise from your solicitor - they will know precisely whether good or bad - no disrespect to any forum member 

Davexf


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## jimenato (Nov 21, 2009)

choco77 said:


> Hi,
> 
> My property in Spain is currently up for sale and myself and my family are now renting somewhere else in Spain (due to work commitments).
> 
> ...


My niece and her partner sold their house in Madrid using a scheme like this. 

It was all above board and done through lawyers and they have now, after a number of years, received the full amount. 

I think it is a recognised method in Spain and there are safeguards in place in case of default. 

Do it properly through lawyers of course.


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## Overandout (Nov 10, 2012)

Ask for a bank guarantee to the value of the "remaining balance".

You can draw that for cash if they fail to pay as per the commitment drawn up.

If no bank will give them that guarantee, walk away.


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## Dunpleecin (Dec 20, 2012)

Don’t even entertain the idea.


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## Madliz (Feb 4, 2011)

Presumably the buyer cannot obtain a mortgage. I would therefore not entertain the idea either.


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## MickinUS (Jun 26, 2013)

choco77 said:


> Hi,
> 
> My property in Spain is currently up for sale and myself and my family are now renting somewhere else in Spain (due to work commitments).
> 
> ...


I've sold about $100million of property in the US and here is my advice.
1. Get their offer in writing;
2. Establish the source of their 70% (if any of it is borrowed, walk away!)
3. If the 70% is cash you are then giving them a mortgage for 30%.
4. Establish the terms of that mortgage - term (years, rate, default etc etc)
5. Get a credit report - no lending institution in the world will give you a mortgage without a credit report. If you decide to give him a mortgage then you had better get a report. Is he local, is he an ex-pat, does he have property, say in the UK? If he has property in the UK, can you lien that property in the amount of the 30% - might be easier to collect there.

You have to be so careful in establishing what rights you have to evict in the case of default. Make sure you have a good solicitor - mortgage documents can be extremely complicated.

You have too little information here to make a decision. Let him persuade you that he's good for the 30%.


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## davexf (Jan 26, 2009)

MickinUS said:


> I've sold about $100million of property in the US and here is my advice.
> 1. Get their offer in writing;
> 2. Establish the source of their 70% (if any of it is borrowed, walk away!)
> 3. If the 70% is cash you are then giving them a mortgage for 30%.
> ...


Hola 

No disrespect but that advice may be good for the USA/Canada - but this is Spain with a totally different set of laws. The only place for advice is from the legal profession 

Davexf


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## MickinUS (Jun 26, 2013)

davexf said:


> Hola
> 
> No disrespect but that advice may be good for the USA/Canada - but this is Spain with a totally different set of laws. The only place for advice is from the legal profession
> 
> Davexf


Absolutely correct. That's why I said: "Make sure you have a good solicitor - mortgage documents can be extremely complicated."


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## Juan C (Sep 4, 2017)

MickinUS said:


> Absolutely correct. That's why I said: "Make sure you have a good solicitor - mortgage documents can be extremely complicated."


The chance of getting lawyer who is really good, is possibly a bigger risk than accepting the offer now on the table !


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