Title Deed Insurance
Whether you are selling your property in Spain or looking to purchase a property in Spain, there is an Insurance product on the market available that insures your title deed from certain defects, such as defective title, administrative error, administration claims and fraudulent claims. The insurance value is to a maximum claim of 360,000€ the policy valid for a period of 20 years from the day you sign, there is a one off payment – no monthly or annual charges. The product is underwritten by one of the most important insurance companies in Spain; they have over 65 years of experience in the insurance market in Spain and are the insurers for the Spanish Savings Banks (Cajas de Ahorro) and in 2008 underwrote 2,356 million Euros in policies. Remember, the Safe Purchase Guarantee is designed to protect you against problems that were unknown, unforeseen, unfair or fraudulent at the time of purchase. As with all insurance products, pre-existing or known conditions are not covered. Title Deed Insurance in Spain covers, amongst other issues:
- FRAUD AND INCAPABLE VENDORS – Document forgery, are the vendors really entitled to sell the property?
- COASTAL LAW REVISIONS AND PROCEDURES – The policies are continually changing in Spain as regard public and private land
- ADMINISTRATIVE AND FINANCIAL CLAIMS – against previous owner – bankruptcy and preferred rights of creditors
- HIDDEN DEFECTS – You are covered for the period of 20 years against mistakes or discrepancies in the title deeds that make your property unsaleable or which limit your rights to enjoy your rights of ownership
- DEMOLITION ORDERS – you may discover after some time that a Demolition Order has been placed on your home because it has been proven that the Local Authority building licence issued for the build is illegal and infringes land classification (Urban Planning Laws), environmental, coastal laws at the time of purchase or perhaps the property was built without any permissions or permits whatsoever or is built in breach of the building licence that was issued. The policy also covers illegal extensions and ‘improvements’
- IDENTITY THEFT – Someone steals your identity and either sells or remortgages the property without you knowing – you are left homeless or with a debt that is not yours registered on the property – yes, it has happened!
- COMPULSORY PURCHASE – You find your property is subject to a compulsory purchase order or compulsory purchase proceedings that predate your purchase. You could face having your property compulsorily purchased – at a fraction of the value – plus find yourself paying the administrative costs.
- HIDDEN VALID LEASES – You have purchased a property that prior to your purchase was leased to a third party. That lease is valid until it expires, regardless of who owns title to the property.
- LAND REGISTRY PROBLEMS – The Land Registrar encounters a defect in the deeds and will not register you as the owner.
- ADMINISTRATIVE ERRORS – Issues not discovered or dealt with by your lawyer or notary at the time of your purchase e.g. the property is subject to ruin or eviction order from the date of your purchase.
- BOUNDARY DISPUTES – With third parties or neighbours who may claim that the property you have bought occupies land that belongs to them
- ACCESS PROBLEMS – Third parties will not allow you access to the property – e.g. the vendor will not vacate the property, or over the term of the 20 year policy a right of way or unregistered charge is discovered that affects the property.
- COMMUNITY DISPUTES – If you live within a community or urbanisation you may discover of the term of the insurance that agreements have been passed within the community that may limit or interfere with your right to enjoy your property. You are being charged too much for community fees or taxes.
- LEGACY DEBTS OR UNKNOWN HEIRS- Property owners or unknown heirs from the past make claims on your property as their inheritance rights within Spain.
- LACK OF OCCUPANY PERMIT.
If you are a Spanish property owner and wish to sell, you will already be aware of the downward spiral in Spanish property prices, fuelled by Spain’s economic woes and the bad press regarding the demolition of illegal properties etc. If you live near or in an area that has already been affected by illegal building problems, the coastal law enforcement measures (La Ley de Las Costas) or the Valencia ‘Land Grab’ you more than most will be aware of the difficulties in attracting potential purchasers to your property. It could well be that you are one of the very many thousands of homeowners that have never had a problem with their property and future owners also may never have a problem with your property – you can offer prospective purchasers of your property a Safe Purchase Vendor Guarantee, an insurance policy that covers your property for a period 20 years for defective title issues, administrative errors, rights of way issues, third party claims, demolition orders. If you are purchasing a property in Spain and your vendor does not offer a Safe Purchase Vendor Guarantee you can take out your own Title Deed Insurance on your property in Spain. You can take out Title Deed Insurance at any time during your ownership of your property. You will be asked to complete an application form and sign a policy document. The premium is a one off payment of 495€, this is the premium for the term of the insurance – 20 years, so that is just over €2 per month for possibly one of the most important decisions you will have made for your property in Spain – peace of mind and your Title Deeds Insured.
- IMMEDITATE COVER – from the day you sign the policy
- 20 YEARS ‘SAFE PURCHASE’ COVER
- ONE OFF PAYMENT NO MONTHLY PAYMENTS
- GUARANTEED PROFESSIONAL LEGAL SUPPORT IN RESPECT OF ANY CLAIM IN SPAIN ON YOUR POLICY
- YOUR PROPERTY RIGHTS PROTECTED
- COVER TO 360,000€
- UNDERWRITTEN BY LEADING SPANISH INSURER
Please contact Spanish property Check for further details at spc@irl353.com