Buying a Bank-Owned Property in Spain Seems Cheap, But Is It Worth It?

Finding a property through a bank or investment company can be advantageous, as it is often offered at lower prices than normal market properties. However, there are some drawbacks.

1. Lack of information about the property:

• Incomplete history: Complete information about the property's condition, previous repairs, structural or legal issues may not be provided.
• Hidden defects: The property may have hidden defects that are not detected during the initial inspection, leading to unexpected expenses in the future.

2. More complex purchase process:

• Additional documentation: More documentation and bureaucratic procedures are usually required compared to purchasing a traditional property.
• More time: The sales process can be longer and more cumbersome due to the complexity of negotiations with the bank or investment company.

3. Stricter sales conditions:

• Source of funds: Banks and investment companies may require detailed information about the origin of the money used for the purchase.
• Limited negotiation: The price negotiation margin may be smaller compared to properties on the free market.

Therefore, we always advise our clients to thoroughly inform themselves about the advantages and disadvantages of buying a house from a bank or investment company before making a decision. We also always recommend hiring an independent lawyer or notary to oversee the purchase process and ensure that all legal aspects are properly handled.