: Slippery Sales Agents be careful !!! :

[jojo]

Originally Posted by gyqn75

Hi all,

Guess what is happening to us! We purchased in Murcia province and are trying to get our lawyer to provide an audit trail of the costs. An email was received and the deductions were as expected until he produced an entry saying "3% Retention". We asked for a written explanation but he will not reply in writing, only saying he needs to meet us to explain the Spanish system. Well the costs were all explained before we started the process and nothing like this was mentioned. The seller has had 3% retained for CGT from the money paid over. Am I right in smelling something off here?

My OH knows about this and is looking for a link which I'll put on in a mo - summat to do with capitol gains - waaaaaay above my head!

Jo

[jojo]

Originally Posted by jojo

My OH knows about this and is looking for a link which I'll put on in a mo - summat to do with capitol gains - waaaaaay above my head!

Jo

Here we go, he's dictating it to me!!!!!

"Changes to capitol gains tax in 2007. Under the new law all non resident sellers, regardless of when they aquirred the property are subject to a 3% retention of the sales price, paid to the tax office by the purchaser on account of the seller and applied against the sellers capitol gains tax"

link???

Buying property in Andalucia, property investment Spain

Jo

[Stravinsky]

Originally Posted by jojo

Here we go, he's dictating it to me!!!!!

"Changes to capitol gains tax in 2007. Under the new law all non resident sellers, regardless of when they aquirred the property are subject to a 3% retention of the sales price, paid to the tax office by the purchaser on account of the seller and applied against the sellers capitol gains tax"

link???

Buying property in Andalucia, property investment Spain

Jo

Theres no Capital gains payable by a resident over retirement age, but I think that applies to residents, not non residents. This is one of the plusses about putting in a tax return to register (even if its a zero return) as a fiscal resident ..... when you come to sell you can prove you are resident.

[gyqn75]

VMT Jojo and Stravinsky. Further to my post, the lawyer now seems to have stitched us up in that the Escritura is deliberately vague about who pays the the CGT and he has retained the sum from BOTH buyer and seller. Will update when more news.

[Big Pete]

Originally Posted by gyqn75

Hi all,

Guess what is happening to us! We purchased in Murcia province and are trying to get our lawyer to provide an audit trail of the costs. An email was received and the deductions were as expected until he produced an entry saying "3% Retention". We asked for a written explanation but he will not reply in writing, only saying he needs to meet us to explain the Spanish system. Well the costs were all explained before we started the process and nothing like this was mentioned. The seller has had 3% retained for CGT from the money paid over. Am I right in smelling something off here?

No that is the normal , They hold that money from the seller to ensure that the due money is paid ..

So dont worry its just the Spanish way the same happened on my purchase the little German Guy had an ammount with held to ensure once hes back in Germany he doesnt hide ..

[Big Pete]

Originally Posted by gyqn75

VMT Jojo and Stravinsky. Further to my post, the lawyer now seems to have stitched us up in that the Escritura is deliberately vague about who pays the the CGT and he has retained the sum from BOTH buyer and seller. Will update when more news.

hmmmmm sounds familier ,, stand your ground the seller pays his own CGT you stick to your guns Ensure this is pointed out to the Notario ! if its not insist he amend accordingly . Or the sale is off

Have you passed the moneys over then ? have you done the Notary bit ?

[MichelleAlison]

It just gose to show what good teachers the Spanish were when they landed in Argentina 200 years ago!!!!!!!!!!!!

All the Argentines say the same thing "we have the Spanish to blame for all our bad ways"

Hasta la vista

Michelle

[Chukkie]

This sort of thing goes on all over Europe, not just in Spain. The important, fundamental, thing is - get a good lawyer to handle the transaction for you. Someone who is working for you and has no connection with the vendor, agent or developer. I am no fan of lawyers but in this case it's worth it. And you can sue them if they get it wrong!

[Chukkie]

I see references to 'the lawyer' when what is meant is 'the notario'. Don't confuse them - many agents seek to confuse buyers over the issue. The notario is NOT a lawyer, he is a government agent, witness and tax collector. He is not there to act on your behalf but to act independently of either party. YOU must hire a lawyer to act ON YOUR BEHALF.

[Stravinsky]

Originally Posted by Chukkie

This sort of thing goes on all over Europe, not just in Spain. The important, fundamental, thing is - get a good lawyer to handle the transaction for you. Someone who is working for you and has no connection with the vendor, agent or developer. I am no fan of lawyers but in this case it's worth it. And you can sue them if they get it wrong!

I'd love to hear from someone who sucessfully sued a Spanish Lawyer

I recently heard a story about someone in Huescar who was wrongly sold a property that due to circumstances he couldn't legally buy. He lost all his money. He tried to sue his lawyer and the estate agent. They both claimed they had never heard of him, the lawyer refused to come to court. and the court found against the purchaser. He has no house, no money and no one is responsible.

The lawyer who advised that poor couple (The Priors) earlier in the year in Almeria that there was no way their house was going to be demolished as the documentation was 100% correct. They now live in their garage which is all that is left of their home.