Spanish property auctions

The following information about what is involved has been supplied by ‘Spanish Property Auctions.’ Auction house practice will differ.

What does the auctioneer do?

In most cases they will take clients to view homes, give them advice on legal matters, help them find mortgages and point them in the right direction when they need it.

Who benefits from a property auction?

It tends to be people who have tried the traditional estate agent route and it hasn’t worked. They’re probably keen to sell-up as quickly as possible. For the buyer the advantage is the number of bargain properties on sale.

What are the safeguards?

You can arrange to inspect the documents for a possible purchase prior to attending the auction. All purchasers are advised to have a full survey done on the property and if there are major problems that haven’t been disclosed then there is a €3,000 deposit which is fully refundable. It is important to have independent legal representation and not to try and do things on your own.

Before the auction…

• View the property in just the same way as you would normally.
• Appoint a legal expert to help you through the process.
• Check documents relating to the property seven to 10 days prior to the auction.
• All properties have a reserve price – this isn’t disclosed to potential buyers.
• Have a survey done on the property.
• Make a bid on a property before the auction if you prefer.
• Any debts that might be accrued against the property should be cleared prior to auction.

At the auction…

• Bring identification with you to the auction house including NIE and passport.
• Someone can bid for you at the auction by proxy.
• The auctioneer will advise you on how to place your bids.

After the auction…

• Sign a reservation contract and pay a €3,000 deposit.
• The deposit is refundable if a survey shows there are undisclosed defects which could invalidate a mortgage.
• Once the auction is over you can still make a bid if the property didn’t sell.
• Completion on the property is between 30 and 40 days after  the auction takes place.