Choosing the right agent
Getting the right overseas property agent to do the legwork can take almost all the hassle out of buying. They should be experts in the particular overseas market you're looking at and know everything about the particular property or development. They should also be in direct contact with the developer as this means all official documentation on the purchase is readily available. They will also be able to find out about important factors like forthcoming development expansion plans, which could affect a purchase.
Reputable developers
Doing your own research on a developer's track record is very important. You should meet with them personally, visit previous developments, speak to current residents and research online as well.
Foreign laws and regulations
Many countries and sometimes even specific regions within countries have special regulations for foreign buyers. These can limit a buyer's exit strategy and can sometimes vary, depending on a buyer's personal circumstances. We advise all our clients to seek independent legal advice. Your property agent should be able to recommend at least two or three different lawyers who you should speak to personally before deciding which one
to appoint.
Contracts
Buyers are sometimes required to sign reservations and full purchase contracts in two different languages. A buyer should ensure that an independent solicitor has approved both, in line with your understanding
of the agreement.
Report from the land registry
This should be requested either by you or your legal advisor. It should contain a full description of the property, including the vendor's name, legal boundaries and any debts related to it.
Building license and planning permission
This may seem like a simple thing to have checked before a buyer hands over a deposit. However, there are many stories in the overseas sector of developers marketing homes without the necessary planning permission, or the local equivalent. Your agent shouldn't be trying to sell you a property without planning permission, but it is good practice to make sure you have a copy of these documents.
Guarantees
Out of all the guarantees that can sometimes be associated with an overseas property purchase, the most important is a bank guarantee for the developer. If you're buying an off-plan property you must make sure you're protected by this guarantee in case the development is not completed. If a developer doesn't have this, you are potentially exposed if the developer runs out of funds prior to completing the project.
Price lists
Before you agree to a purchase figure you must make sure the price list you are referring to is an official list released by the developer. You must also clarify what is included in this price and what may be extra i.e. furniture packs. General purchase costs like local and national taxes must also be factored in.
Offshore structuring
In the UAE, we live in a tax-free environment but most overseas purchases will be in a territory which taxes rental income and possibly your capital gains. Therefore, we always recommend that our clients obtain specialist tax advice on structuring the purchase before they buy their dream overseas home. This will ensure the purchase and subsequent resale is as tax efficient as possible.
Inspection trips
If at all possible you should try and visit the location yourself to see firsthand how long the transfer time is from the airport, how good the local amenities are, and most importantly, whether you like it enough to return year after year.
