View Full Version : Hello From Australia

04-12-2013, 03:49 AM
Hello All,

Just after a little info is that's OK.
I work in the property market in Australia doing Lease Options AKA rent to own and Vendor Finance deals. I know they are gaining popularity across USA , Australia, New Zealand and now the UK because of the GFC.

My question is are they legal and used in Spain? Seems to me we have lots of sellers that cant sell property and lots of people that want to but property but can not because the banks are not lending.

Having done both transaction types in Australia and helping sellers that are near to foreclosure it just seems to me to be a suitable strategy in a stale property market.

I would love to hear any feedback


04-19-2013, 02:02 PM
Hello Robert,

Please explain in detail the type of company it is and the services they offer so we can let you know if they legal here, though initially, I do not see a reason for them not to be.


04-30-2013, 04:39 AM
Hi Patricia,

Thanks for your response, It is not necessarily a company or need to be a company, These strategies are quite simple in reality. A seller may sell a property and just provides the finance to the seller. No bank loan is needed as such, although the seller may have a mortgage already in place. The new buyer just pays the existing mortgage until such time as the buyer wishes/can get a bank loan to payout the seller their money. A price is agreed upon upfront and a contract is drawn up by a solicitor. Title to the property remains in the sellers name until full payment has been received. The buyer may place a caveat on the property to protect his interests. This strategy of sale is commonly know as a terms contract or vendor finance.

Rent to Own is also very simple to complete, The Renter simply rents a property with an option to purchase for an agreed price, usually a option amount is paid upfront and a portion of the rent paid contributes to the purchase of the house if and when the buyer takes up the option to buy.

Obviously there are other details that are covered in each transaction but this is a brief overview of the strategies. I have heard that they can be used in Spain but they are not well known. These strategies can be very beneficial to both buyers and sellers in a slow property market where the banks are not lending.

Thanks in advance

05-02-2013, 10:11 AM
Hello Robert,

Those are unusual transactions in Spain, but there are certainly agents that do those operations. They do not have a legal recognition in Spain, though are not regarded as against the Law either.