No way of knowing if there’s an overseas debt on a ppty?

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This topic contains 6 replies, has 6 voices, and was last updated by Profile photo of Anonymous Anonymous 4 years, 5 months ago.

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  • #56889
    Profile photo of Anonymous
    Anonymous
    Participant

    Is that right, or am I missing something? Sounds crazy.

    Just read the below article where an expat who bought legitimately (with solicitor) in 2003 is having his home embargoed because the previous owner had a german debt against the property. Apparantly, “The problem is that lawyers can only check on borrowings against property in Spain, not money owed in other countries, so there is nothing to safeguard people from getting into this situation. It is farcical.”

    British expat faced with property embargo in Spain following bank dispute

  • #109958
    Profile photo of angie
    angie
    Spectator

    Snowy it does sound crazy and I don’t know the answer but maybe the lawyers who look on here or Mark might know the answer.

    I agree with the comment to the article by someone called Stefanjo who basically says if this is not clarified or addressed properly, how can anyone have confidence buying in Spain aside all the other problems we know of? 🙄

  • #109959
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    I don’t see where the problem is. IF there is no mention in the ‘previous deeds’ of a debt then As i understand it it is not a debt on the property but on the individual (previous owner).
    Even in the case where someone wrote a private agreement with a lending company (and the lender did not have it registered) then it is a personal debt.

    Where are the lawyers offering free advice when you need it!

  • #109961
    Profile photo of katy
    katy
    Spectator

    Fuengi, I agree. If it’s not registered on the nota simple as a debt then it’s not valid.

  • #109962
    Profile photo of Chopera
    Chopera
    Participant

    It is impossible to take out a formal loan in one country against a property in another country. Well, I mean somebody in Germany might ask for a loan against a house they own in Spain, and somebody might be stupid enough to give them that loan, but the lender has no legal means to repossess that property. The loan would simply not be recognised within the Spanish financial system.

  • #109963
    Profile photo of Anonymous
    Anonymous
    Participant

    Chopera: The loan has to have a charge known as cross border colletral. Historically no lender will take such a collateral due to legal complexities and its enforcement in the event of a default. The later in theory is not an issue due to EU regulations allowing action for enforcement in member states.

    In practise Banks just do not go down this route as they prefer to lend on simple less complicated borrower.

    The of

  • #109969
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for your thoughts.

    It makes no sense to any of us, but taking the article at face value, it remains that there’s a guy at the centre of this fiasco….and he’s as baffled as the rest of us as to why this is happening. He’s undoubtedly facing a seemingly unnecessary legal battle…and the costs associated with it.

    Like Fuengi, I too would welcome the definitive view from the lawyers offering free advice on here(??)

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