8 common conveyancing problems and how to avoid them
Understanding the potential pitfalls when buying or selling property can help prevent costly delays and disputes
Buying or selling a property in Spain may seem straightforward, but the conveyancing process – the legal transfer of property ownership – is often far more complex than people expect. Whether in Spain or elsewhere, numerous issues can arise that can delay or even derail a sale. Knowing what these problems are and how to avoid them can make the process smoother and less stressful for both buyers and sellers.
Conveyancing involves much more than simply signing contracts and transferring funds. It requires careful handling of legal documents, compliance with local regulations and coordination between several parties including estate agents, solicitors, mortgage lenders and surveyors.
Below are some of the most common problems encountered during conveyancing and practical ways to resolve them, as shared by experts for expats Heniam & Associates.
1. Delays in the property chain
In many cases, a buyer’s purchase depends on selling their own property first. This creates a ‘chain’, and if one link in the chain breaks, perhaps because a buyer pulls out or financing falls through, it can delay every related transaction. Good communication between all parties is essential. In some instances, bridging loans or agreeing to flexible completion dates can help keep the chain intact.
2. Issues with the property title
Title problems are a frequent cause of delay. Missing deeds, unclear ownership boundaries, or restrictive covenants can all prevent a sale from proceeding. Resolving these issues may involve locating missing documents, negotiating boundary agreements, or applying for amendments through the Land Registry. A competent conveyancer will carry out thorough title checks early in the process to identify and address any problems before contracts are exchanged.
3. Survey and inspection concerns
A survey may reveal defects or maintenance issues that were not initially obvious. Common findings include structural problems, damp or outdated wiring. Depending on the severity, the buyer and seller can negotiate repairs, a reduction in price or agree to share the cost of remedial work. Acting quickly and maintaining open communication can prevent these issues from escalating into disputes.
4. Planning or building regulation problems
Unapproved building work, such as extensions or alterations, can be a serious obstacle. Buyers may require confirmation that all works comply with local planning and building regulations. Obtaining retrospective approval from the local authority can take time, so many conveyancers recommend taking out indemnity insurance to protect against potential enforcement action.
5. Delays with mortgage or finance
Mortgage approval can sometimes take longer than expected, especially if the lender requests additional documentation or if the property valuation raises concerns. Buyers should start their mortgage application early and ensure they have an agreement in principle before making an offer. Sellers, meanwhile, can help by being flexible with timelines where possible.
6. Missing or incomplete documentation
Essential paperwork, such as planning consents or compliance certificates, can occasionally go missing. Tracking down replacements can be time-consuming, so it’s best to gather all necessary documents as soon as a property is put on the market.
7. Leasehold complications
Leasehold properties can bring additional challenges, including disputes with the freeholder, high service charges or uncertainty over lease length. Buyers should review the lease carefully and clarify any obligations or fees before proceeding. Sellers should resolve any outstanding disputes in advance to avoid delays.
8. Gazumping and gazundering
‘Gazumping’ occurs when a seller accepts a higher offer after agreeing to sell to another buyer, while ‘gazundering’ happens when a buyer lowers their offer at the last minute. Although both practices are legal, they are widely viewed as unethical and can cause considerable frustration. Keeping communication transparent and moving swiftly to exchange contracts can reduce the likelihood of either situation arising.
The importance of professional help
Some sellers try to save money by managing the conveyancing process themselves, but this can lead to costly mistakes, especially when dealing with complex property laws such as those in Spain. Incorrect or missing information in contracts can not only delay the sale but also expose the seller to potential legal action. Hiring a qualified and experienced conveyancer ensures all documentation is accurate, deadlines are met and potential problems are handled before they escalate.
While conveyancing can be challenging, most issues can be avoided or quickly resolved with proper guidance. Working with a professional conveyancer who understands local regulations, communicates effectively and acts promptly is the best way to ensure a smooth property transaction from start to finish.
To talk to a professional and experienced conveyancer in Spain, use the contact details below to reach out to Heniam & Associates today: