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NOVEDADES OVERSEAS S.L. Spanish Property Auction
Buying at Auction
Welcome to an exciting and satisfying way to purchase Spanish property.
The following information is to assist first time auction buyers through the process of purchasing a property at an auction sale.
The auction programme of Novedades Overseas S.L. includes at least four residential property auctions a year, these offer properties located all over Spain. The auctions attract a wide variety of purchasers from first time buyers, to large property companies and experienced investors.
First Request a Catalogue
The catalogue provides details of all the properties to be offered and is normally available approximately three weeks before each sale.
Click here to Request a Catalogue
Details will be online up to three days before it is mailed. Having registered you will receive by mail your catalogue.
Study the Catalogue
Mark those lots that might be of interest to you. Please note whether the lots are offered with vacant possession, tenanted or part vacant.
Price Guide
Guide prices are enclosed with the auction catalogue and are subject to change. Guide prices can also be viewed online from our web site normally three weeks before each sale.
If only one or two guide prices are requested please contact the auction department who will be pleased to help you:
Guide prices are not the definite figures at which a property will sell. They are only intended as an indication. Price guide is subject to change and prices achieved at auction may be more or less.
Property Inspection
To make arrangements to view property please call on one of the quoted numbers. Occasionally we will be working with a local estate agent who will hold the keys and meet you at the property.
In some cases the properties may be opened up for group viewing at a pre-arranged time, group viewings commence from the issue of the catalogue and continue until the day before the auction. It is not necessary to call us to attend a group viewing, just turn up at the appointed times listed in the auction catalogue.
However, if you require assistance regarding this please do not hesitate to contact one of our UK or Spanish offices.
Optional Registration
Should you be attending the auction for a specific property it is advisable to let us know so that we may contact you if we are notified that the property may be withdrawn or an offer has been accepted before the auction. Having registered your interest we will try to inform you of any major changes to your particular lot.
Valuation Report
If required a valuation can be carried out on your behalf as quickly as possible. For this we recommend Tasaciones Immobilarias S.A. (TINSA) who act for most of the important banks and field companies – some properties have recent valuation. A survey application will be enclosed with the auction catalogue.
Legal Documentation
Buying a property at auction is safe, transparent and an opportunity to obtain a property at below market value. You have the option to decide how much you want to bid without any pressure, also the confidence of knowing the property is being sold legally without any hidden liabilities.
For each property to be sold there is a prepared legal pack containing copies of all legal papers that you and your solicitors will require to make a positive decision regarding your lot.
The pack includes copy of the title deeds (escrituras), copies of last receipts for rates, communidad, water and electricity and current copy from land registry. And, in some cases, recent valuation report.
Legal packs are available from our office for a small fee. We do not guarantee that these papers will be available but we will forward every relevant document we have received from the vendors or their solicitors.
Should we be unable to obtain all the relevant information or you have a query that we are unable to answer, we will refer you directly to the vendor’s solicitors. In the event of a legal pack not being to hand we will take your order and despatch the copy documents as soon as they become available. All legal packs will be available for inspection at the auction room.
Please note you purchase subject to the available documentation and terms of the contract whether or not you read them.
Legal Documentation Request Line
Tel: Spain (34) 96 563 1211
Tel: UK (44) 0207 404 0548
Possible Offer Before the Auction (OPTIONAL)
Should you wish to make an offer for a particular lot before the auction date submit it to us in writing. Your offer will be passed on to the vendor and we will be in touch with you as soon as we receive their instructions.
Your offer will need to be unconditional and you will have to be in a position to exchange contracts and to pay your deposit before the day of the auction.
Contracts – Successful Bidder
As a successful bidder at the auction sale you will be legally obligated on the fall of the hammer, and you will then be asked to sign an exchange contract in the auction room, at the same time paying the required initial (10%) payment. You will find in the back of the auction catalogue a copy of the memorandum and sale. There will be attached to the contract a copy of the catalogue notices and general conditions of sale containing our standard terms of sale.
Special conditions of sale may apply to individual lots. These are not printed in the catalogue but attached to the contract and are available separately in advance from either our UK or Spanish offices.
Important Notice
Properties are not sold “subject to contract”, “subject to finance” or “subject to survey” when you buy at auction. Each property is sold unconditionally and if you are the successful bidder you are legally applied to complete the sale.
Initial Payment – Deposit
Should your bid be successful you will be legally obliged to provide the auctioneer with a bank cheque for 10% (plus our buyer’s fee – please see auction catalogue for amount) on the day.
A Spanish bank cheque will be accepted and will be specially cleared the same or next day so the funds should be readily available to cover your initial payment. Should you be bidding for several lots please bring enough cheques to have at least one cheque per payment.
Mortgages and Payments
Should you require a mortgage it is important that you obtain an offer from your lender in principle before the auction day. A member of our finance department is available to give advice or assist in obtaining a mortgage on your behalf.
Most lenders will need to instruct a survey and to receive a valuation report before making a mortgage offer, therefore, it is necessary to make your mortgage application as early as possible.
Completion of properties bought in auction is normally required up to 28 days after the day of the auction. Be sure to discuss this with your lenders to make sure there will be no unnecessary problems.
Unable to Attend the Auction
If you are unable to attend the auction it is possible to bid in other ways.
BY TELEPHONE – we will telephone you when the lot is coming up for sale.
BY PROXY IN WRITING – you can specify your maximum offer and the auctioneer will bid on your behalf.
Whichever method you use we must have a completed registration form forwarded with a bank cheque to cover your deposit, plus buyer’s fee prior to the date of the auction. In the event of you not being the successful bidder, your bank drafts will be returned immediately after the sale.
A Bidder’s Registration Form is Available in the Catalogue
LEGAL REPRESENTATION
Bidders may wish to bring to the auction their own lawyer/abogado, especially when bidding for large or complex lots. This is at the bidder’s discretion. However, there will be available in the auction room independent legal representation, both lawyers/abogados and estorias. A legal pack, which is available prior to the auction, will also be available for inspection on the day and, in some cases, the vendor’s solicitors will be there to answer any queries regarding the property.
There is no reason your legal enquiries cannot be finalised before the day of auction. To reduce legal fees it is recommended that you use an English speaking Spanish lawyer/abogado – list of names and addresses are available on request.
Making Your Bid
The auctioneer will announce your lot and bring to your attention any last minute issues of which you should be aware.
You will be read the full postal address of the property as listed in the title deeds/escritura. The lot will be displayed on a screen in the front of the auction for all to see. Also displayed is the last bid taken for the lot being being sold.
The auctioneer will start the bids at a particular level and bidding can be made by raising your hand or catalogue. Bids will be regulated by the auctioneer and the property will be indicated as sold to the highest bidder – the property is not sold until the auctioneer warns the room by saying “going once, going twice, going for the third and last time…sold” – and the hammer drops.
Remember lots can be lost by waiting until the last second to make your bid. Definitely no questions will be taken by the auctioneer from the floor once the auction is in progress.
Possible Alterations
On occasions changes need to be made to the catalogue entries or special conditions of sale. These are up-dated continuously and published in a document headed “REVISION”. It is printed and distributed to everyone on the day of the auction. It is important this document is read before bidding to ensure there is nothing significant listed against your lot.
The “Revision” document forms part of the contract of sale. Note: it is recommended potential purchasers contact our office on the day of the auction to make sure that the lot in which they are interested is still available.
What Happens on the Day
HAVE AVAILABLE:
- Your catalogue
- Cheque book or bank draft (one for each lot to be purchased)
- Identification – driving licence, passport, identity card etc.
- Details of lawyer/abogado you intend to use (one will be available in the auction room)
It is necessary to register at a Novedades Overseas S.L. auction
Auction Times
The time period of an auction sale usually covers two sessions: morning and afternoon – see catalogue for guide.
Before commencing the auction the auctioneer will make a pre-sale announcement about the auction procedure. The auctioneer’s pre-sale announcement is summarised in the auction catalogue. He will also give notice of withdrawn and pre-sold lots. Normally lots are offered in the order in which they appear in the catalogue, and will not be offered in an earlier or later session than advertised.
On the day we make available an “Order of Sale”. Sales normally close before 5.30p.m.
The Drop of the Hammer
Having made a successful bid a member of our auction team will approach you with a simple form. At this time you will be asked to provide your details and identification.
Please Note the purchase form at the back of our catalogue
Should you be making a bid on behalf of a third party you will need the name, address and telephone number of the person or company you are representing. You will also be asked for the name and address of your lawyer/abogado. You will also be asked to make a payment to Novedades Overseas S.L. to cover the deposit and buyer’s fee. You will then be given a receipted lot card which is your proof of purchase. The contract will be prepared for you to sign using the details provided and the contract will be available at our “Sold Desk” after approximately twenty minutes.
Once the contract has been prepared you will hand in your lot card, the contract will be signed by both yourself and on behalf of the vendor to take away. This should be given to your lawyer/abogado. We will retain a copy to give to the vendor’s legal representative. Unless otherwise specified a sale will be completed within twenty eight days from the date of the auction (unless any special conditions of sale apply). Be sure not to leave the auction without your signed contract.
Once the hammer falls you have entered into a legal obligation.
Once the contract has been signed the property is at your insurable risk – be sure that you arrange your building insurance immediately after the sale.
Should a Lot I am Interested in Not Be Sold
If the lot you have interest in failed to reach its reserve price, and you wish to purchase it, you should register your highest offer with us before you leave the auction room.
We will contact the vendor with your offer and await their instructions. We will then contact you if we think a sale after the auction can be completed. With agreement with the vendor it may be possible to exchange contracts with you in the auction room on the day of the sale.
Alternatively, you can call us in our office after the sale.
Tel: UK (44) 0207 404 0548
Tel: Spain (34) 96 563 1211
Email: novedades@spainpropertyauction.com
Summary
Buying at auction need not be an intimidating experience providing you have made all of your enquiries, and you have your maximum figure firmly in mind.
Should you have any queries before the sale please contact us and we shall endeavour to assist you.
Attention – if you have any doubts about anything by the date of the auction and a satisfactory answer is not given to your queries, we advise you do not bid. Meanwhile, we wish you success.
UK: (0044) 207 404 0548
Spain: (0034) 965 631 211
Email: novedades@spainpropertyauction.com
T. +44 (0) 207 404 0548
F. +44 (0) 207 262 4433
E. novedades@spainpropertyauction.com
