Finding a Good Lawyer When Buying Property Abroad

How many times have you heard it said and how many times have you seen it written and read it with a sinking heart - “when buying a property abroad you need to engage the services of a good lawyer” – yeah right!  How much easier said than done is that then?

When buying abroad how on earth are you supposed to know a good lawyer from a chancer, a decent solicitor from your estate agent’s brother or a qualified notary from an incompetent pretender?  Yes it’s true, finding a good lawyer when buying a property abroad is utterly essential, but it’s also true that it’s not especially easy.  But, fear thee not, with our guide you’ll breeze through the process.

First things first – WHY is it essential to get decent legal assistance?

Well, buying a property abroad is probably one of the most significant financial undertakings that you will ever engage in and the action brings with it legal and financial consequences above and beyond the most obvious. 

Your property asset will form part of your overall estate for example, meaning that you will need to understand the laws of succession and also your inheritance tax liabilities as a result of your purchase action.  Additionally, if you want to derive an income from the rental of your property you will become liable for income tax at home and abroad and need to understand that liability, your declaration responsibilities and double taxation agreements.  On top of all of this the legal system in the UK differs from that in many other countries, the language spoken in the vast majority of counties overseas is other than English and all this adds up to a potential disaster waiting to happen if you don’t know what you’re doing! 

So, that’s pretty much why you need to get decent legal representation…

The next question to ponder is whether you need an English speaking lawyer in your overseas country of choice, a British lawyer who specialises in property overseas or both…

And the answer to this question is – well, it actually depends a lot on you and where you’re buying your property!

What is essential is that the lawyer you choose has an understanding of both the property laws in the country in which you’ll be buying and also your legal and taxation situation in the country in which you reside and the country in which you’re buying.  Sometimes it’s possible to get one lawyer who can cover all bases, sometimes you can find a legal practice with a variety of lawyers to cover all aspects and sometimes you have to get legal assistance in both countries.

A good way to start is by speaking to a UK based lawyer in general terms about what you are planning on buying and the country in which you are planning on purchasing.  They can clearly advise you about how your potential actions will affect your status in the UK.  From their advice you can then decide whether you want to proceed.

Assuming you do, then the next step will probably be finding a good lawyer overseas. 

So, how do you do that then?

You can take a recommendation from a friend, relative or trusted person overseas in your location of choice who has already used the services of a given lawyer during a property transaction.  You can contact the Law Society in the UK as they have lists of English qualified lawyers who work overseas – although you need to ensure these lawyers are also qualified, experienced and allowed to work in the country you’re thinking of buying in of course!  They also have lists of lawyers near you in the UK who may have experience dealing with overseas property transactions.  Additionally you can contact the Federation of Overseas Property Developers, Agents and Consultants who list some lawyers or you can get on to the British Consulate in the country you want to buy in because they always list lawyers in that country who speak English.

The listing services as detailed above are not vetting or approval services though – which means you may be able to easily find a lawyer but you need to do more due diligence before you can be sure the person you’ve found is able to help you…

o Make sure the lawyer you choose is qualified to act in the country they are operating in.

o Make sure they are qualified in dealing with property transactions and if choosing a lawyer in the UK to assist with the purchase of your home overseas make sure they have expertise in the areas of foreign real estate.

o If you choose a lawyer overseas ensure they understand your position as a non-resident buyer and the legal and taxation ramifications that will have as a result of your transaction.

o When using an overseas lawyer ensure their English and foreign language skills are good.

o If using a UK based lawyer ensure they use the services of a qualified translation service.

o Check out the fees you will be charged for their assistance and what this amount of money will cover up front before you agree to engage them…usual fees are between 1 and 2% of the property’s price for a complete service but this can differ from country to country.

o After speaking initially to a given lawyer you need to ask yourself whether you were happy with their manner and attitude as well as their service and whether you can therefore continue working with them.  Don’t be afraid to walk away if you just don’t like their attitude because despite the many letters they may have after their name, they still need to be able to offer customer service and if they come across as though they think they are better than you then you can do better by finding another lawyer!

o Finally, if using an overseas lawyer double check again that they can assist you as a foreign buyer with the entire legal ramifications of the purchase including getting wills in place etc.

Hopefully this guide to finding a good lawyer when buying property overseas has given you more than just food for thought and you can now go ahead with confidence. 

One final word of warning though – don’t be tempted to take a recommendation for a lawyer from the estate agent, developer or vendor you’re buying from.  Their intentions may be entirely without malice when they recommend someone to you but you need to ensure anyone you work with in the capacity of protecting your interests has no association with the person or people you are buying from otherwise you will never know if they were totally independent and did the best job possible for you. 

Good luck!