First and foremost you must choose a lawyer who is independent of both the Estate Agent you are dealing with and, in the event of the property being brand new, independent to the builder as well. This advice is pretty much ubiquitous throughout the industry however, unfortunately, is very rarely followed effectively.
In my experience many buyers wait until they have found the property they want to buy before making first contact with a lawyer and then, almost always they take up an invitation from their estate agent to be introduced to their recommended lawyer.
As I have just described, there is often an affiliation between the estate agent and the lawyer they recommend, if so, the lawyer will be paying a referral fee to the estate agent in return for the new clients that the estate agent introduces to them. If the lawyer receives a steady stream of new clients from that agent they will want to protect that relationship.
In a perfect world, and hopefully in most of the real life scenarios where this situation occurs, the lawyer would protect the relationship by providing excellent customer service and ensuring that the client leaves happy and full of praise for the agent and the law firm. Likewise, an estate agent will choose a lawyer who provides a great service to their buyer and in doing so ensures that their sales go through with as little hindrance as possible.
In an imperfect world, the lawyer might be tempted to downplay a risk or overlook inappropriate behaviour on behalf of the agent and the estate agent will choose a lawyer who would bend to their bidding and pay them the highest referral fee.In most cases there will not be an issue, both lawyer and agent will be acting honestly and even if the lawyer lacks integrity, their licence should be more valuable to them than their relationship with the agent. I have however encountered, on many occasions, examples of a lawyer placing their interests, or those of their affiliated agent, ahead of the interests of their client.
In any case, on a purely practical level, there’s a very good chance that the lawyer was responsible for writing the agent, or builder’s standard reservation and purchase and sale contract and so you essentially end up paying them to check their own work. If there is a fault in that contact they are obviously unaware of or they would not have issued it in the first place, it is also likely to have been drafted in the best interest of the agent and their client - the seller.
The only way you can be sure to eliminate the risk of a nefarious relationship of this type between the lawyer and the agent or builder is to independently find a lawyer to represent you before you set about looking for a property. Not only will this mean that you are confident in your lawyer’s integrity but you will also know exactly what to do when you find the property you want to buy and, as I described above, you will maintain control of the situation and not pass it to the agent who is selling you the property.
RED FLAG WARNING
I often hear people advising that there is no need to use a Lawyer when a “Gestor” can deal with all the paperwork and is much cheaper. A Gestor is an administrator who can help deal with the numerous levels of bureaucracy that you will encounter in Spain.
It is true that a Gestor can deal with the paperwork involved in a house transfer however they are not qualified to give legal advice. As they are not qualified, they are not licensed to give legal advice and therefore they cannot be insured if any legal advice they did give turned out to be wrong.
A lawyer will not just sort out the paperwork, they will perform legal due diligence. In short, a gestor will tell you which boxes to tick and where to sign, a lawyer will tell you which boxes to tick and whether or not you should sign.
I have also heard people say that they employed a lawyer and that the lawyer did nothing that a gestor wouldn’t have done. If that is the case it will be because the lawyer did not find any problems. A lawyer does not become valuable because they find a problem, they’re valuable because they looked for it in the first place.
How should you go about finding and instructing the right lawyer?
One of the first questions to answer here is whether you should employ a local lawyer who is familiar with local idiosyncrasies and has local contacts, or one that is based outside of the area and is therefore most likely to have no connection with any of the other parties involved in the sale.
At various points in my career I have advocated for both these options. Had you asked me this question 15 years ago I would have told you that you should always go with a local lawyer. We have seen that rules and regulations vary across Spain and local lawyers have local connections and understanding of the laws and practices in their areas which can be valuable. There is truth in this, however in the meantime I have gained a law degree, and learned how to conduct legal research.
The internet has also made legal research much easier, there is no need for dusty books and libraries when online legal databases are now prevalent. I now know that any legal question about a property anywhere can be answered by any qualified Spanish lawyer regardless of their location.
Furthermore it used to be the case that a lawyer would have to be present at the notary to deal with the signing of the deed. As the notary is always local to the property being transferred this meant that a local lawyer was needed in order to avoid expensive travel costs.
The notary can now be dealt with remotely (in short, the lawyers work will still be notarised however they use a second notary who witnesses their actions for the notary preparing the deed) which removes this problem..
As a result of these changes I have more recently advocated using an out-of-town lawyer to deal with your purchase on the grounds that the local connections that were previously advantageous were also the conditions that were most likely to create a conflict of interest.
Now I believe the approach to take should be the approach that makes you most comfortable, while keeping the potential for conflicts of interest in mind. If you are someone who feels most comfortable dealing with face to face meetings then a local lawyer will be the best option for you as you can visit their office, look them in the eye and shake hands directly.
If you are somebody who is comfortable dealing over video calls and emails and who sees little need to waste time driving to offices and sitting in waiting rooms then I would suggest that dealing with a remote lawyer may be the best option for you.
The most important thing (beyond the essential checks that I will describe below) is that you balance the pros and cons of each option to help you find a lawyer that you feel confident and comfortable dealing with
Local Lawyer | Remote Lawyer |
Pros: | Pros: |
- Face-to-face meetings and personal interaction | - Eliminates potential conflicts of interest with local agents or developers |
- Knowledge of local laws, regulations, and practices | - Saves time and effort by avoiding travel to offices and waiting rooms |
- Familiarity with local idiosyncrasies may help speed up the process | - Legal research can be conducted efficiently online |
- May have experience dealing with similar issues in the same area | - Meetings can be conducted via video calls and emails |
Cons: | Cons: |
- Potential conflicts of interest with local agents or developers | - Lack of face-to-face interaction and personal connection |
- May require travel time and waiting room visits | - May not have in-depth knowledge of local practices. |
Personally if I were to be buying a resale property then I would be more inclined to deal with a local lawyer. Given the markets troubled past there are more likely to be issues encountered and, while the law can be researched from anywhere, having some knowledge of the idiosyncrasies of a particular location may help speed things up - for example having dealt with title problems on a particular development once, a lawyer will have a head start if the same problem is found with another property in the same development.
If I were dealing with a brand new property being bought off-plan then I would be more included to use a remote lawyer. The legal framework is now so much clearer and the checks that need to be made are so easy to do online that I can see no advantage of using a local lawyer. The virtual elimination of the risk of there being no conflict of interest doesn’t come at the cost of any downside.
The Steps to take to find the Right Lawyer
Step 1: Research Potential Lawyers
Search online for lawyers in Spain and look for reviews or testimonials from previous clients. Beyond a simple Google search you are likely to find a list of lawyers and their areas of specialisation on the website of your country's embassy in Spain. Also in the online resources of this book I will be maintaining a list of recommended lawyers who meet the criteria I set out in this book.
Talk to friends who have been through the process and ask them if they would recommend the lawyer they used, although be aware that what you are really looking for here is feedback on their working style and communication, just because the sale went through without a hitch doesn’t mean the lawyer did a great job. I could cross a busy road with my eyes closed, but, if I got to the other side unscathed, it would by no means indicate that my method of crossing the road was anything other than dangerously incompetent.
Look for a lawyer who specialises in property law in Spain and has experience working with clients who speak your language. I would avoid lawyers who are not based in Spain itself and offer Spanish property conveyance as a service. Even if they are qualified to practise in Spain, they are likely to be expensive and to simply subcontract much of their work to a Spanish Law firm.
Create a shortlist of the law firms that meet your criteria and have favourable reviews and feedback.
Step 2: Schedule an Initial Consultation
Once you have a list of potential lawyers, schedule an initial consultation over the phone or via video call. Tell them that you are about to head on a buying trip for property and you want to be prepared so that you know what to do when you find the property you want. Most lawyers are happy to offer a free 30 minute consultation to explain their service and help you decide whether to instruct them.
During the consultation ask questions to better understand the lawyer's experience, approach, fees, payment structure, and services included in their fees. I have provided a checklist in the online resources to help you manage this initial consultation.
Discuss the lawyer's availability and preferred methods of communication (e.g., email, phone, video call). Ensure that their communication style aligns with your preferences and that you feel comfortable working with them throughout the property purchase process
Ask the lawyer to confirm their registration with the local "Colegio de Abogados" and send you a link to their registration for verification. This proves that they are qualified and are legally permitted to practise as a lawyer.
Ask the lawyer to confirm that they hold indemnity insurance (professional liability insurance) and ask for evidence of this.
Ask the lawyer to confirm how they would proceed if you were, by coincidence, purchasing a property through an agent with whom they already have a close working relationship, or from a seller who they already represent. An individual lawyer cannot represent both parties to the contract (ie the buyer and seller) however two separate lawyers from the same team can represent a party each.
Step 3: Ask for a Follow-Up Email
Request a follow-up email confirming the services they will provide, their fees, and their credentials. Additionally, ask them to include a list of documents they will need when you are ready to instruct them and the retaining fee they require at that point.
Use this to check the lawyer's communication style, ensure the email arrives in a timely fashion and is clear and easy to understand.
Save this email so that you can refer back to it when you find a property
Step 4: Choose a lawyer
Having reviewed your notes from the initial consultations, choose the lawyer that you wish to work with and also keep an option in reserve in case your favoured lawyer is unavailable when you find the property you wish to purchase, or in the case that there is a conflict of interest and that lawyer is unable to represent you.
Step 4: Instruct the Lawyer
Once you find a property to purchase and are ready to place a holding deposit, follow the instructions from your consultation and the follow-up email to begin working with the lawyer.
In summary, when researching and selecting a lawyer to assist with your property purchase in Spain, it's crucial to choose an independent professional who specialises in Spanish property law and has experience working with clients who speak your language. By following the steps outlined above—researching potential lawyers, scheduling an initial consultation, requesting a follow-up email, and carefully considering your options—you can make an informed decision and find a lawyer who best suits your needs and preferences.
Remember, investing time and effort in selecting the right lawyer can save you from potential conflicts of interest, ensure a smoother property purchase process, and provide you with the peace of mind that your interests are being protected throughout the transaction. Don't rush this important decision; take the time to find a lawyer you feel comfortable working with and who demonstrates the expertise and commitment necessary to guide you through your Spanish property purchase.
SUMMARY
A lawyer (abogado) is indispensable when buying property in Spain.
The lawyer should be independent of the estate agent and builder.
A lawyer's role includes legal due diligence, contract review, title search, assistance with documentation, tax preparation, escrow services, representation, and more.
When buying off-plan, a lawyer also reviews contracts, conducts due diligence on the developer, ensures legal compliance, verifies guarantees, monitors construction progress, and handles deposits and payments.
Choosing between a local and remote lawyer depends on personal preferences and priorities.
To find the right lawyer:
Research potential lawyers online and through recommendations
Schedule an initial consultation
Request a follow-up email
Choose a lawyer based on credentials, communication style, and comfort level.
Instruct the chosen lawyer once you find a property to purchase.
Investing time in selecting the right lawyer can save you from potential conflicts of interest and ensure a smoother property purchase process.