Thursday 10 February 2011

How to find an independent solicitor or lawyer

When buying a property abroad, you’ll want to make sure that the contract of sale protects you, your money and your future property. With this in mind, it is absolutely essential that you get an independent and legally registered solicitor. However, doing this is not always as easy as you would think.

When you have decided on your property, it’s quite common for the developer or estate agent to simply take you to a solicitor who will handle the legal aspects of the purchase. This solicitor is often the same one that represents the property company - or one of a few that the agents send all their clients to.

Quite clearly, going to the solicitor who works for the property company creates a serious conflict of interest. If you were buying a home in the UK you would never consider buying a property from, say, Barratt Homes and then asking their solicitor to draw up your contract – would you? No – you would get your own solicitor to ensure that the correct searches are completed, that the contract protects you and the whole process is legally compliant.

Alternatively, going to an ‘independent’ solicitor the agent recommends means there is a good chance that the lawyers are beholden to the agent for future business…not good news for you.

In some countries it’s illegal for solicitors to advertise their services so they rely heavily on word-of-mouth and property agent recommendations. And because there are usually quite a few lawyers, many agents or developers choose to work with those who make sure the sale goes through easily and smoothly and works to their benefit.

Unfortunately, neither situation is good for the property buyer.

Buying in a foreign country does mean that if you choose to find a solicitor on your own, chances are they may be linked to your developer or agent anyway without you even knowing it. To avoid this some ex-pat organisations recommend that Brits choose a solicitor outside the area of purchase. By doing so, you’ll have more chance that your legal representative will do the right thing rather than bow to the needs and pressure of local developers.

In the UK, it is standard practice for your solicitor to work for your protection, but abroad it may be a case of ‘if you don’t ask, you don’t get’, especially if the solicitor is protecting the agent’s interests rather than yours. You need to remember too that you have the right to get your solicitor to insert any clause in your purchase contract that you deem reasonable. The developer/agent may or may not be happy with your requests, but it is your right to ask for what you want. Consider asking for the following:

- Protection against late delivery – ensure there is a hefty penalty charge for every month the property is late

- Make sure you can get your money back immediately if there is a situation where building permission is not granted

- Ask for freedom to sell the property at any time

- Dictate that the developer must insure the property against fire, earthquake and any foreseeable risk during the build

- Request there is a maximum fee for cancellation agreements (currently developers charge whatever they want!)

To conclude, there may be no foolproof way to find an ‘independent’ solicitor abroad, but there are definitely actions you can take to get as close as is humanly possible!

Never just take people at their word; do your own homework and your own research.

Just because lawyers in the UK have a high level of standards and ethics, don’t assume that it’s necessarily the same abroad. Not that I am implying that all solicitors abroad are not honest, but there is no doubt that some owe an allegiance to agents and /or developers and thus will not necessarily give you the protection that you need.

Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com

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