On 14 April 2013 the Spanish Royal Decree 235/2013 came into force. It approves the basic procedure for the Certification of Energy Efficiency in Buildings.

As from 1 June 2013 there is an obligation for the vendor to make available to purchasers or tenants of buildings a CERTIFICATE OF ENERGY EFFICIENCY (EPC in UK), which must include objective information regarding the energy efficiency of their building or part of it. The Energy Efficiency Rating Symbol must be displayed when the property is being marketed so it is essential to obtain it now.

The energy efficiency certificate is valid for 10 years, assuming no major changes to the building.

Section 12.2 establishes the obligation which most affects the marketing agreement and states literally: “the symbol must be included in all offers, promotions and publicity directed towards the sale or rental of the building or a unit of the building. The symbol must always show, clearly and unmistakably, if it refers to the energy efficiency certificate of the project or to that of the finished building.”

The present circumstances prevent your property (building of more than 50 sq m or rental of more than 4 months in any one year) being marketed as from 1 June or until such time as you are in possession of the corresponding certificate. Note that new buildings from 2008 will already have Certificates.

The most worrying aspects are the infringements and penalties due to non compliance. At present, in Andalucía, the penalties are classified as very serious, serious or minor. Proposed penalties are to be 300€ to 600€ for minor offences, 601€ to 1,000€ for serious offences, and 1001€ to 6000€ for very serious offences. However, if the profit that the offender obtains by the offence is greater than the amount of the penalty, the fine imposed shall be for an amount equivalent of such benefit. In addition to these, any contract issued after the 1st June without it can be declared invalid and the buyer or tenant have to be compensated.

The procedure is that we carry out a detailed inspection of the building and then enter all the information into a special computer program, which then gives the rating. That is then sent to the Colegio for confirmation stamp and then sent to the Junta de Andalucía for them to issue the certificate. Unfortunately the timing of the latter part of the process is not known.

If you own a property in Spain with a spouse, relative or friend and wish to transfer or sell the share to the joint owner or take full legal title to the property then read on.

Many problems can arise post completion of a purchase of a property in Spain such as divorce, disputes between the joint owners or potential heirs as a result of an inheritance proceeding or even dissolution of a business relationship and Spanish law is on hand to assist in these situations. The condominium or co-ownership of a Spanish property when two property owners own a property is regulated by article 392 of the Spanish Civil Code and provides the option for the co-owners to dissolve the joint ownership of the property if they do not wish to continue to own the property jointly.

If the property cannot be physically divided because it is not possible to do so and the property cannot be sold on the open market, then the co-owners can reach an agreement amongst themselves whereby they dissolve the joint ownership of the property with one of them becoming the 100% owner of the property and acquiring the other’s share. The co owners would have to agree a price for the share in the property to be purchased and then deal with the legal formalities. If they are unsure of the value of the property then it would be advisable to obtain a formal valuation of the property at their joint expense. If however the situation amongst the co owners has deteriorated beyond reaching an agreement to dissolve the ownership and they cannot agree on a sale on the open market, then it is possible that the co-owners or one of them could issue legal proceedings before a Spanish Court for the sale on the open market of the property. The disadvantage of this is that the price of the property is established by the Court and subsequently the property is sold at a public auction. Normally the price achieved in a public auction is much lower than the market value of the property or the value of the property as perceived by the parties. Therefore it is strongly advisable to set differences aside and reach an agreement with the other co owners and then sign what is known as a Deed of Dissolution of joint ownership before a notary. A Deed of Dissolution can only be signed between two joint owners of a Spanish property.

What are the tax implications of signing a Deed of Dissolution?
Dissolution of co ownership of a Spanish property is subject to payment of Stamp Duty in Spain, as opposed to Transfer Tax which is normally paid by buyers in a purchase of a property. The Spanish tax authorities reviewed Stamp Duty recently and this increased to 1.5% of the total taxable value of the property or of the purchase price of the property whichever is higher. If the co owner who is leaving the co ownership is a non tax resident in Spain then the remaining co owner will be obliged to retain 3% of the agreed price for the share of the property and pay this to the Spanish tax authorities on account of the potential capital gain made. If the departing owner is a Spanish tax resident then they will be obliged to declare any gain made in their tax declaration.

General procedure
Both parties can attend the signing of the Deed of Dissolution in person or grant a power of attorney to lawyers. At the notary’s office, the Deed of Dissolution is signed between the co-owners/representatives and the agreed funds are paid to the departing co owner. The taxes associated with the dissolution are paid and subsequently the deed is registered at the Land Registry to update the registry records and ownership. It is also advisable to change the utilities for the property into the name of the new owner and inform the community of owner’s administrator about the change of ownership. In addition if the property is subject to a mortgage the owner who remains will have to satisfy the bank that they can afford the mortgage and the bank would have to agree to the dissolution and may charge for modifications to the mortgage deed.

Article courtesy of Alex Radford of Irwin Mitchell Abogados
Email: alex.radford@irwinmitchell.es
www.irwinmitchell.es

We’ve now successfully inspected our first villa for the CEE; organised the considerable amount of required info (down to colour of the window frames!); inputted it into the recently updated program; and pressed ‘Return’. It’s an ‘E’ with a figure of just over 50. Well that’s not too bad for here. No air conditioning, which would have decreased the efficiency, but equally no solar heating which would have bettered it. And if water and space heating was by biomass – it would have had an ‘A’ rating. That’s nuts, but that’s what the program gives.

Various obvious recommendations, such as improving the windows, renewing the boiler to a more efficient one, increasing insulation, etc, but nothing startling. I don’t think that a buyer is going to be put off by that, most of which is pretty obvious in any case.

Also pleased to know that the obligatory certificate just relates to the external ‘envelope’ of the property plus the heating/cooling process. The detailed internal construction, light fittings, demotics, etc are not included, which will make the whole process simpler, less time consuming and thus less expensive to carry out. However, it could be beneficial to have those facts recorded at the time of the survey as they can then be used to advise the new buyer on how they can be incorporated into improving the property when they carry out the inevitable personalising of their new ‘nest’. The small additional cost of that recording can be repaid many times over in reduced energy consumption and comfort.

So now the completed report, with all the info and calculations, is passed to the appropriate Colegio for their approval and stamp. Once that’s returned, the document is sent to the Junta’s CEE – Certificado de Eficiencia Energética  Registry office for approval and eventual delivery of the final certificate to the property owner. Then they can take that to the Notary, with all the other requirements and the sale/transfer of ownership can be registered.

Only three wee problems!

1.    How long is the Colegio going to take to review the initial submission? What’s to review? – They can’t check the facts of the property put in by the surveyor and the rest is automatically churned out by the computer program, which doesn’t allow any erroneous entries!
2.    How long is the Junta’s office going to take to issue the certificate? – I’ve been told that it hasn’t even been set up in Málaga and as I write this there are only 22 days to go until the 1st June when it is obligatory for any property transfer!
3.    According to the law, as of the 1st June 2013 the Notaries will not be permitted to agree any transfer of a property of more than 50 sq m if they are not presented with a Junta issued certificate. Having talked to a Notary today he says that’s still the case and they have received no further guidance from their Colegio.

If there is not to be chaos at the beginning of June, some ‘accommodation’ must be come to. Perhaps Notaries will be instructed to accept the initial surveyor’s report for a period until the whole system is set up. As new build properties have needed these certificates since 2007, I cannot see why all this couldn’t just have been added into that system. However, watch this space as new information comes forward.

But in the meantime, do not delay. GET THE INITIAL INSPECTION CARRIED OUT AS SOON AS POSSIBLE.

The CEE – Certificado de Eficiencia Energética – regulation was finally published on Saturday and came into effect on Monday (15th April 2013). As from the 1st of June 2013, no property transfer, by sale or lease, will be registered by a Notary without a CEE. This results from an EU regulation that’s been in effect from 2002 and the equivalent CEE’s have been required for many years in other countries. New property in Spain has had to have the CEE since 2008 and the new regulation brings that requirement to resale properties.

The property owner is obliged to get the certificate by instructing a suitably qualified property professional. They then inspect the property; note the many relevant points of location, construction and condition; enter the information into a highly complex computer formula; and the bar chart ‘banding’ of the property will be produced. This is then submitted to the appropriate Comunidad’s office (eg Junta de Andalucia or Murcia or Valencia) for ratifying and then the CEE is issued to the owner.

It’s going to cost and take time, so if you are selling or renting your house it would be prudent to instruct the work now. If you wait until, for example, the buyer gives his deposit, then there is the risk that the issue of the CEE will delay the sale. The professional can be encouraged to work quicker, but once it’s submitted to the Junta’s office who knows how long it will take. Everybody is new to the system and will have to learn how it works. Over the last few months, professionals such as Architects, Technical Architects and Building Engineers have been taking courses on how to generate the certificate and hopefully the government officials have been similarly training in the scrutiny and issuance of the final CEEs.

Unfortunately (as always!), there appear to be different levels of work that can be carried out to provide a certificate, with cursory ones resulting in poorer levels of banding, but with the more studious giving the possibility of raising the banding. And that’s important as inevitably the better the band the higher will be the price of the property, as buyers will see that there will be energy savings over a poorer band property. In addition, there is talk of the system leading to ‘encouragement’ for owners to improve the energy rating of their property by, for example, reductions in the level of IBI having to be paid. In other words, poorer banding indicates higher energy costs and potentially higher taxes.

“But how much does a CEE cost!?” Apparently, it’s up to the individual professional and their client to agree the fee, and the Government has indicated that the professionals should charge only 90€ euro and the Junta official will charge nothing. Having taken one of the courses and knowing the amount of work involved in producing the band correctly, that might just be the fee that could be charged per owner if a professional is surveying a large block of identical apartments at the one time. It would certainly be sensible for presidents and administrators to instruct a professional to carry out the work on the whole of their community and thus save the costs to the individual owner. The certificate lasts for 10 years so even if owners are not selling or renting now, it will be worthwhile as there is bound to be an obligation in the future for all properties to have a Certificado de Eficiencia Energética.

However, if you are the owner of an individual villa, then it’s going to cost considerably more for a proper survey to increase the possibility of getting a better CEE banding. It goes down to the details of the window glass thickness, the efficiency of the water heater, the orientation of the walls and roof, etc, etc. It could easily take 4 to 5 hours for a large place and then all that information has to be entered into the formula and the result submitted to the officials. Inevitably there will be some queries from them that will involve more work and then the CEE will be issued. I can see the fair costs being easily 400€ euro or 500€ euro or more for even a medium villa.

So agents, this is your new challenge! You aren’t supposed to market a property after 1st June without the certificate being displayed. There will be fines for you and the property owner if you don’t. You’ll need to explain matters to the owner, take all the abuse directed against agents, professionals, bureaucrats, Governments and the EU, but have to persist as all your marketing and selling work could come to nothing without that certificate.

Survey Spain RICS Chartered Surveyors are not permitted by the Spanish Government to issue certificates, despite the EU regulations on European wide professional qualification acceptance, but we have arrangements in place whereby we can arrange to have the professional work carried out throughout Spain.

Whilst Spain may be behind UK in introducing the requirement for Energy Certificates for property, it gives us to benefit from their experience. Here is a recent article that was aired on the RICS Chartered Surveyor’s website. Author is a specialist in Energy Performance Certificates in England.

The 10 years from 2008 to 2018 are seeing a profound transformation of the regulations relating to energy efficiency and, importantly, their impact on properties. Sam Parkes explains:

Imagine in the next few years having to tell a client that they cannot put a property on the market for rent because it is inefficient. This, and the requirement to make both commercial and residential properties more efficient, is a very real possibility. We are in the middle of a decade when energy efficiency and certification are becoming more important.

Energy Performance Certificates (EPCs) were introduced in 2007. Since then, many agents have seen them as simply bureaucratic paperwork – another irrelevant legal requirement of the sale and rental process. However, since October 2011, EPCs have taken on greater importance, and a poor rating will soon start to have a significant impact on property owners.

Regulations have now been tightened further. Since April 2012, all property being offered for sale or rent is now required to have a valid EPC. Owners, as well as managing and marketing agents, are all now liable to be fined for breaching the revised regulations.

The UK government clearly demonstrated its new green agenda in the Energy Act 2011. Produced by the Department of Energy and Climate Change, this set out the framework for the Green Deal which was introduced last autumn and the first of many implications, and possible restrictions, for inefficient property owners.

Under the Act, it is proposed that from April 2018 ‘inefficient properties’, both commercial and residential, would not be permitted to be let. While it remains unclear what will be defined as ‘inefficient’, it is worth noting that in England alone an estimated 680,000 private rented properties currently fall into the bottom two energy performance ratings of Bands F and G (see graph). In addition, around 18% of commercial property in England fails to meet a Band E performance rating.

Increased efficiency
When residential landlords start to consider the potential impact of the Energy Act, they should be aware that it proposes that domestic tenants are able to require landlords to make improvements to inefficient properties from April 2016. They should also bear in mind that both the proposal dates of April 2016 and April 2018 are when the legislation should have come into effect, and this may all happen much sooner.

Many insiders believe that the definition of an ‘inefficient property’ will be raised to Band E or lower by 2018. This is supported by various studies and reports, including from organisations such as the WWF and Consumer Focus. With around 50% of its carbon dioxide emissions deriving from property, it is clear that if the UK is to reach its 80% Carbon Reduction Target by 2050, properties must become more efficient. In addition, the property sector may find itself under even greater restrictions and requirements to subsidise other areas, such as transport.

Under the Act, it is proposed that from April 2018 ‘inefficient properties’, both commercial and residential, would not be permitted to be let

As far as residential properties are concerned, the works to increase efficiency may not be complicated because many homes currently do not even have the standard levels of insulation. It is estimated that around 40% of homes still have no loft insulation and only 60% of homes with cavity walls have wall insulation. Furthermore, while the recent government boiler scrappage scheme was very limited in its scope, it did highlight the fact that most properties are using inefficient non-condensing boilers.

It is very difficult to set out a list of specific requirements for every residential property to achieve a Band D rating or better. What is clear is that for a traditional home to be efficient, it will at the very least need levels of insulation and draught-proofing to meet current Building Regulations, complete control of the heating and hot water systems and an efficient hot water cylinder and boiler.

While the Energy Act and the tightening up of the EPC regulations have prompted many to start reviewing the efficiency of properties, most people with vested interests are still analysing the details and structure of the Green Deal, which was further clarified at the end of January. Among them is the provision of funding for energy efficiency works to properties, which are repaid through energy bills. One golden rule of the scheme is that any “charge attached to the bill should not exceed the expected savings and length of payment period of the lifetime of the measures”. In other words, a property’s total energy bill, including the grant repayments, should be lower after works have been carried out.

As well as making properties more efficient, land and property owners have also had to deal with the confusion over renewable energy production schemes, Feed-In Tariffs (including sudden changes to these), and Renewable Heat Incentives. The extent and complications of these schemes and incentives have given rise to a whole additional industry of energy advisors and specialists. All aspects of any renewable energy installation should be carefully considered in the context of individual properties, portfolios and whole-farm or estate strategies.

Proposed revisions
In addition to the impact of proposals restricting the letting of inefficient properties, the 2010 changes to the Display Energy Certificate (DEC) regulations came into effect on 9 January. The requirement for public buildings to display a DEC, has been reduced to cover all buildings larger than 500m². While the occupier, and not the owner or agent, will bear the burden of this requirement, it will significantly add to the amount of information held by the government.

Over the next five years, we will see the initial implementation of the government’s green agenda. Many believe that, leading on from this, a building’s energy efficiency will become linked to the level of business rates or council tax paid, and perhaps even to a significant increase in stamp duty. Apart from taxation, the inexorable rise of energy prices over the past few years has impacted on both occupiers and owners, causing all to start considering ways to reduce costs.

In the immediate future, it is vital for everyone to adhere to the current and proposed EPC and DEC regulations. This should perhaps be followed up by an initial evaluation of which buildings may be classified as inefficient, while assessing what the specific Green Deal funding offers. Overall, property owners can no longer afford not to have strategies in place for bringing buildings up to the required standards and starting to consider the new methods of energy production.

Read the title well, because it’s going to become very familiar over the next few months. On Friday, 5 April, the Royal decree was signed giving authority to the requirement for all property in Spain to have an energy efficiency rating certificate that will last for 10 years assuming no changes are made to the building. For the details, we now wait for the final text to be published in the BOE (Official State Bulletin). As the certification is to be regulated by each Comunidad throughout Spain, there are bound to be some variations.

Everyone will be familiar with the coloured bar codes attached to washing machines and other domestic appliances and it was decided by the EU in 2002 that these have to apply to houses. New houses have had to have the rating since approximately 2007, but the new decree now states that all property must have one if it is to be traded as from, possibly, as early as 1 June 2013. Yes, only 53 days away! The registration of the sale or rental (for more than 4 months) of the house (of more than 50 sq m ‘útil’) will not be permitted by the notary as from the specified date unless it has an energy efficiency rating. The certificates have been familiar features of property transactions in many countries in northern Europe for a number of years and now Spain is catching up. It’s also known that a good energy rating undoubtedly has a beneficial effect upon the value of the property. And why not, as it means that the running costs will be less and, probably, the building has been better maintained.

So, what’s going to happen over the next 53 or more days? Agents, who are going to be liable for a considerable fine if they market property without the rating shown, will have to add this item to the other papers that are required to comply with Andalucía’s Decree 218 and similar requirements in other Comunidades. However, not only is the time short, there will be a cost to obtaining this paper, which will be considerably more than that of the Nota Simple or Catastral information. What that cost is to be is as yet undecided as there is no national scale and it will depend upon each assessor. In addition, the certificate is likely to list the inefficiencies of the property, thus giving buyers ‘ammunition’ with which to reduce the price. I do not envy the agent’s task in persuading desperate sellers to put out scarce cash for these certificates.

I have completed a course for using the compulsory software and know that it is not just a simple box ticking exercise. An upper floor apartment will be relatively simple, but it will take considerable time to assess an individual villa, all of which will have to be paid for. And what are the banks going to do with all their repossessed resale property? So, we have an interesting time ahead. Survey Spain are organising the assessment of properties and will be very pleased to discuss the requirements of individual owners and selling/letting agents.

In the current economic climate it is perhaps not surprising to find that more people are bypassing building surveys in a bid to save money. These are difficult times, agrees the Royal Institution of Chartered Surveyors (RICS), but it also warns people that not having a survey done before they commit their hard-earned money to a property purchase is a short-term saving that could result in far higher costs over the longer term.

Already, one in six homebuyers are currently paying over £12,000 just to make their new home fit to move in to. Defined as such, these costs do not include decoration work or any other form of non-essential structural and technical work, but focus entirely on making the newly bought property liveable. In many cases, of course, the sums spent on necessary repairs can escalate to well beyond the benchmark figure mentioned above, while serious structural renovations can run into six-figure sums for which there is no insurance coverage.

This is the essence of the warning currently being given out by RICS. As they see it, the current economic climate makes it even more imperative not to launch yourself into a large and important transaction you will be repaying for many years to come without the security of knowing exactly what you’re buying and what additional costs may be hanging over you. While not all structural defects show themselves at the time of moving in, most are eventually revealed over the course of years, leaving many a homebuyer to wonder what they have got themselves into.

Giving a home a once-over with a keen amateur eye or bringing a handy uncle along is no alternative for a professionally conducted survey. Just as some apparently fatal cracks and tears can actually be resolved quite easily, so there are a great many potential problems hidden to the naked eye. What’s more, a large percentage of homebuyers in the UK will be buying properties ranging from existing to old, but even relatively new or recently completed houses can have defects, and if you’re buying direct from a developer you’re in a much stronger position to demand recourse if you’ve informed yourself beforehand and have a professional survey indicating the exact state of the property.

The situation is no different in Spain, where building standards are either not always as high as in Northern Europe or occasionally not as strictly controlled. Most properties are fine, but factors such as the weather conditions, gradients and absentee owners can put extra pressures on the health of homes that are sometimes left untended for months at a time. Under such conditions it is important to look for damp, inspect pipes and wiring, and ensure that the property can both be moved in to immediately and does not show signs of impending problems further down the line.

Besides giving you peace of mind and indicating that your property is both safe and won’t begin to cost you more money than you believed it would, the benefit of a survey is that it can greatly enhance your bargaining position with the vendor. In a bad case you will want to walk away from the house, relieved that you found out about its defects before you committed yourself to buying it, but in other situations the issues may not be serious enough to put you off the purchase but big enough to illicit a reduction in the buying price. Also remember that if you get stuck with a house that harbours problems this will affect its value and your ability to sell on too, so don’t make do with a long-distance valuation that serves a completely different purpose – get a RICS qualified chartered surveyor to inspect your intended new home and make sure it is everything you hope it to be.

Survey Spain, Chartered Surveyors: Ethically and professionally governed by RICS in London, 12 qualified and experienced English and Spanish speaking, independent surveyors work with integrity only for you. No conflicting loyalty to banks, developers, contractors, owners, estate agents, lawyers or town halls! All Reports and Valuations are reviewed by a second surveyor.

Q. and A. from a client:

Q. Thank you for the survey, we found this an excellent document with very helpful information. You seem to be extremely busy at present – in your view would you say the property market in Costa del Sol has levelled pricewise and the demand has increased for sensibly priced property? Also is there a particular type of property that you find is selling more at the moment?

A. With regard to the market, undoubtedly there has been a considerable increase in demand. It’s probably due to people deciding that the market has bottomed and that they might as well buy now as wait for any further drop. There is a stock market expression of a ‘dead cat bounce’, which refers to any market that has been dropping inevitably sees a slight ‘bounce’ upwards at the end before it levels off. I think we are possibly in that situation now, especially as this is one of the traditional buying seasons in the year; the other being in the autumn after the lull of summer. So, for the right property in the right location, undoubtedly there is increasing competition and therefore the possibility of prices at least stabilising if not increasing as sellers find that they do not have to drop their price in order to achieve a sale. Having said that, the price has to be right in the first place. With regard to the property at Estepona, as you will have seen from our valuation, we feel that the price there is a good one even bearing in mind the works that are likely to be required to bring the property up to best condition. With a property in that location and style, the works should be worthwhile, certainly for enjoyment of the property and possibly for investment. Mentioning investment, you should bear in mind that with the buying and selling costs of property in Spain, to get your money back you really have to be making 20% on the sale, which, in my opinion, is highly unlikely with the way the market is just now and in the near future. The removal of speculators from the market has meant that buyers now tend to be occupiers, which has always been the core of the market in any case. Accordingly, buy to enjoy the property with the knowledge that economy/currency collapse aside, the probability is that the value will grow over the years.

Campbell D. Ferguson, FRICS, has been advising buyers on what’s real and what’s not for more than ten years on the Costa del Sol and for 40 years throughout the UK and Europe. The Survey Spain Network, carries out valuations, building and structural surveys anywhere in mainland Spain, the Balearic and Canary Islands, and Gibraltar

Many property deals have fallen through due to differences in opinion by the professional property valuers and their appearing to be ‘out of touch’ with the market. Banks’ valuers in Spain, Tasadores, are obliged to work according to the regulations of the Bank of Spain, which regulations at times have appeared to be more designed to influence the market for the benefit of the political requirements of the economy rather than following the market. The same has occurred in other countries Europe-wide and in other situations. With the countries of Europe trading increasingly between themselves, both in property occupation and investment terms, there needs to be a common, trusted standard.

But what is value? Basically, it’s judged by what you or another would sacrifice to become the owner. Nowadays, it is judged in money and that applies to property as much as anything else. The internationally accepted definition of market value is: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

It’s essential that valuers are independent of the lender, the buyer, the developer, the Town Hall and, in Spain’s case, the central Government. They must only be responsible to the market; knowing, reading and experiencing it on a daily basis.

It’s essential that there is a well-regulated and professional body of independent valuers, which will play an important role in the stabilisation of financial markets. The European Parliamentary recognises this and has demonstrated its position by voting to request that member states ensure their valuers are professionally competent and that valuations for residential mortgage credit agreements are carried out to the international standards laid down by International Valuation Standards Council (IVSC).

On 5th June 2012, the European Parliamentary Committee voted to adopt the following article:

•    Member states shall ensure that sound valuation practices are applied in accordance with international standards and methods and the importance of sound regulation and oversight of appraisers (valuers) is recognised.

•    Member states shall require that internal and external appraisers carrying out such valuations are professionally competent and sufficiently independent to provide an impartial and objective valuation to be documented in a durable medium and that lenders keep record of it.

The UK based, but now worldwide organisation, the Royal Institution of Chartered Surveyors (RICS) has been instrumental in ensuring that this article be included in all future valuations and is lobbying the member states to cooperate. All RICS valuers work within the requirements of the ‘RICS Valuation – Professional Standards (the ‘Red Book’)’, which contains mandatory rules, best practice guidance and related commentary for all members undertaking asset valuations. The Red Book is compliant with the International Valuation Standards. RICS valuers are also required to be professionally competent and companies and individuals are regulated.

Survey Spain’s professional surveyors and valuers are already ‘Regulated by RICS’ and hold Professional Indemnity Insurance to protect their clients’ interests. Director, Campbell D. Ferguson, FRICS, with more than 40 years valuation experience including 13 in Spain, is confident that mandatory European regulatory guidelines will ensure that Spanish mortgage valuations have to meet international standards, as many already do. He added, optimistically, “This also means that RICS valuers will be accepted by Spanish lending institutions and Courts, which will benefit English-speaking property investors throughout Spain.”

The Survey Spain Network has individually designed software linking 12 residential RICS chartered surveyors and valuers working all round the coastal and inland areas of mainland Spain plus the Balearics, Canaries and Gibraltar. All reports are reviewed by another chartered surveyor and covered by professional indemnity insurance.
Campbell D. Ferguson, FRICS, has been advising buyers on what’s real and what’s not for more than 13 years in Spain and for 40 years throughout the UK and Europe.

Imagine you’re looking for a property; see one on the internet; like the look of it – the size, location, specs … even the price. At this point you’re quite excited, so you get in touch with the agent and arrange a viewing. On the appointed day you set eyes on the home ‘in the flesh’ so to speak, and first impressions are favourable, very favourable.

You look around you and could imagine yourself living here, then step through the front door and find yourself liking the interior too. Already, you could see yourself in here, amid your furniture and personal belongings, using this room for that, decorating and changing things to suit your taste. It’s all looking so good, your enthusiasm is rising and you’ve noticed your significant other is feeling the same way. You can also be ‘blinded’ by the view and the current owner’s possessions, plus the homely smell of coffee and baking!

It looks like this could be the one – and then you step into a room and see damp or even a little crack on the wall. Horrors, terror, get your coat and flee. Don’t listen to the mumbled explanations of the agent; just get in the car and drive. Or worse still, the defects are filtered out by your ‘rose-tinted glasses’ and you only find them when the seller’s furniture is removed and you’ve bought the property.

But seriously, need you react so strongly? Although many people fear damp or cracks, there are many kinds and causes, so perhaps you shouldn’t. While it may seem calamitous to the eye, in spite of all the ‘man in the pub’ horror stories we’re told about damp and fungus, collapsed walls and subsidence, very few cases are actually that serious. It’s the cause of the damp that’s important rather than the evidence of damp itself.

But it’s best to make sure
Of course we’ve surveyed a few cases where the damp and/or cracks on a wall are indicative of serious problems, sometimes even impending disaster. Hoping for the best and just ‘plastering over the cracks’, could saddle you with all kinds of very costly problems when those actions don’t work any more. These range from aesthetic eyesores and cold, humid rooms unfit for habitation to real structural issues.

When you buy a used car you would always have it checked by a qualified mechanic, just to see if problem areas have been skilfully hidden; so it must make even more sense to bring in an expert in building defects when you’re making as big and important a purchase as a property. A house is not something you swap overnight! For most, it is a life changing investment, both on a financial and a personal level, so you have to do it and yourself justice by making sure of things. Buying ‘in good faith’ and trying to get recompense after the event is much more hassle and costly than getting the building checked beforehand.

Equally, a prudent, informed homebuyer will not lose their dream house at the mere sight of a little damp or a bit of cracked plaster. But neither should you ignore evidence like that and simply hope for the best. It could be telling you something important or merely indicate that a little bit of DIY attention is required.

The professional eye of an RICS regulated Chartered Surveyor, trained vocationally and through many years of experience, will immediately get a feel for the issue, inspect the property thoroughly, and look out for these and other telltale signs. A building analysis is an essential part of a property purchase even when you don’t see any mould, moisture or cracks, because it can detect the problems that every house will have, qualify them in terms of seriousness and cost, or indeed tell you what you were hoping to hear and give the property a clean bill of health.

Don’t forget, it isn’t only about the things you can see when you are looking at a property. Some homes that look perfect to the naked eye are ‘hiding’ potentially serious issues, so call us if you are interested in a property, and we will be able to alert you to problems or put your mind at rest. With accurate knowledge of the property, you can negotiate with the seller and reduce the price by much more than the cost of the survey!

The Survey Spain Network has individually designed software linking 14 residential RICS chartered surveyors and valuers working all round the coastal and inland areas of mainland Spain plus the Balearics, Canaries and Gibraltar.