03 Using an Estate Agent
There are many estate agents on the Costas, both English and Spanish (as well as other nationalities), mostly serving a small local area, but some of which – such as ReMax and Century 21 - are large international franchises. Many of them advertise in the media mentioned above and nearly 200 in prime residential areas are part of the Property in Spain Network.
It is no longer necessary for an estate agent in Spain to be qualified, so it is always an idea to look for an agent who is a member of a professional body - either an “API” (agente de la propiedad inmobiliaria), or a “GIPE”. Normally these agents will automatically have professional indemnity cover provided by their professional bodies, but in any case – and especially if you are buying through an agent who is not a member of one of these bodies - you should check that they do have such cover in force.
If you are buying from an estate agent in the UK, make sure he is a member of either FOPDAC or the National Association of Estate Agents (NAEA) or operates a bonded clients’ account, into which any deposit or other money you pay him on trust will be deposited. This should be an account, which is untouchable except for the stated purpose of the deposit (an “escrow” account).
If you pay your deposit to the UK agent, make sure it is paid into this “escrow” account so that it is blocked and neither party can touch it until the sale is completed.
In Spain, where this legal provision does not exist, make sure that the agent’s professional indemnity policy covers misuse or misappropriation of any monies paid on deposit or ensure that your deposit goes to your Spanish solicitor to pass on directly to the promoter or developer when your solicitor has made his checks on the property and paperwork.