For many, the purpose of purchasing a property abroad is for it to act as a holiday home to escape from everyday stresses or as an ideal retirement present to oneself after years of struggle. What’s important to understand when buying property abroad are the overseas laws associated with purchasing a home.
There are certain elements that will differ from the regular guidelines that you’re used to back home which many people aren’t aware of, leaving them with unnecessary complications that they could have easily avoided. It can also be a large financial risk considering the commitment you would have made prior to selecting the dream home in the sun.
To ensure that this doesn’t occur, here are 3 top tips to protect yourself legally when purchasing a property overseas.
Consider taking out Title Insurance
Title insurance is a term that’s commonly known within the United States, but it can also be found in other countries abroad and is an indemnity insurance policy that’ll protect you for the better. In effect, the title insurance covers you from financial loss if there are any defects found in the title of the property.
A common issue found with title deed documents are misspelt or incorrect wording that doesn’t clearly determine who the owner of the property is. The risk with this is that although you trust the process in being thorough and vigilant, there’s a possibility that a third party could claim ownership later down the line.
Such possibilities would be exempt by taking out title insurance with your property. This means you’re less at risk of losing out financially even after the purchase of the home has been made and an issue has been discovered with the title.
Check with corporate solicitors Manchester based to check whether you’re t- able to take out title insurance.
Take out risk insurance specific to your property
As the heading outlines, risk insurance can be taken out to cover you specifically for a certain risk aspect of your property. You tend to take this out after the initial inspection has been made through a conveyancing solicitor. If they identify a specific issue with the property that can be difficult to resolve, specific risk insurance can be taken out for that specific issue.
An example of a specific risk to a property is in a situation where an extension has been applied to the property without the correct planning permission. If local authorities were to discover this was the case, they would have the right to request that the extension is removed. It tends to be rare that a solution can’t be suggested as retrospective planning permission can be acquired later down the line. However, in cases where a resolution can not be found, specific risk insurance can be a great investment.
Having the knowledge that specific risk insurance has been taken out against the property can provide you with the reassurance that you won’t be out of pocket if issues were to be identified.
Ensure your property lawyer has professional indemnity insurance
Research on your property lawyer is important when purchasing a property abroad. You’re likely to be a little unfamiliar with the local area and it’s likely that the lawyer will be handling the majority of transactions and proceedings with your purchase. Their main aim would be to have your best interests at hand during and after the transaction. The risk is that not being thorough with their processes could be financially risky as unlike the UK where it’s compulsory for property lawyers to acquire professional indemnity insurance, this isn’t the case abroad.
To avoid such problems, acquire a UK-based lawyer who has knowledge of the overseas market if possible. This will cover you during the conveyancing process and prevent further costs on dispute resolution solicitors if any mistakes are made.
When purchasing a property abroad, it’s important to research and select a lawyer that has experience in dealing with overseas transactions. Having a better knowledge of such experiences will help the process run much smoother.