Thread: EU pilot scheme improves legal certainty when buying property abroad

A pilot scheme is currently running, which could help alleviate some of the problems experienced by expats when buying property in Spain and other European Union countries.

The scheme, set up by the European Land Registry Association (funded by the EU), allows for the purchasing procedure to be settled in the buyer's home country and under the protective laws of that country.

It also guarantees compensation for unknown restrictions and violation of the contract by the seller.

Currently piloted in Holland and Spain, the Cross Border Electronic Conveyancing scheme means that a Dutch buyer of Spanish real estate can apply Dutch law to the contract and ask a Dutch court for compensation from the seller if he later finds out there are unknown public limitations, such as retrospective planning laws, affecting the property.

Pilots with other countries are expected later this year.

Details of the CROBECO project were unveiled at a seminar hosted by Ms Wallis (Lib Dem MEP) on June 14 at the EU parliament, in a bid to find a way forward in overcoming legal uncertainties when buying land abroad.

A spokeman for ELRA said: "The fact that the deed is processed in the buyer's own language by a conveyancer from their own country, [means] they get the feeling that they are better legally protected and will be less reluctant to buy real estate in foreign countries where the real estate market has collapsed."

The scheme is likely to be music to the ears of investors looking to snap up a bargain safely, as well as countries such as Spain who, saddled as they are with a toxic combination of surplus holiday homes, a flailing economy and a tarnished property sector reputation, are desperate to entice foreign buyers back into their housing market.