Buying bank repossessed property in Spain

Have you ever checked out a bank repossessed property in Spain? You could think that it’s a scam because the price is often a real bargain. However, when the property is listed by a well-established and reputed real estate agent, the listing is usually legitimate.

Is it safe to buy a bank repossession in Spain?

Though we advise you to do your due diligence and get proper legal advice beforehand, buying a repossessed property in Spain can be a wise and safe operation. But we think it’s not for everyone, and you need to know why before you make up your mind.

Please, note that this is just some general information about the process and that it might not apply in your case. We strongly recommend you get proper legal advice before you buy a property in Spain.

Is buying a bank repossession like any other conveyancing in Spain?

No, buying a bank repossession is not like private conveyancing. The purchase of bank repossessed property in Spain involves a unique procedure due to the Spanish Money Laundry Law.

Though this Law applies to every real estate conveyancing in the country, it is stricter for bank repossessions. It means that the process is different from private conveyancing: it is often considerably longer, as more documentation is required from both buyer and seller.

– The Seller (Bank) must follow a very exhaustive documentation process, which may take months in some cases.

– The Buyer must prove that their funds comply with the seller’s Money Laundry procedures. To thoroughly track the origin of the funds, the buyer must produce some precise information and documents. Sometimes, self-employed buyers may find that these documents are not always easy to provide.

Recommendations to buy a bank repossession in Spain

If you want to invest in a repossessed property, you will need time and a good amount of patience. As it happens, there are many comings and goings with documents, which might result in delays to secure the property. We recommend that you contact a local, independent lawyer to guide you through this process.

To help you save some time when buying a bank repossession, we advise you to be very specific about the origin of your funds. Many buyers would initially state that their funds are “savings”. And later, it comes out that the money is an inheritance, a loan from their family, the sale of a property, etc. Surely these origins may be legitimate, but not mentioning them from the beginning could make the process longer.

We also recommend keeping the changes amongst bank accounts to a minimum. The more your funds are transferred from one bank account to another, the more explanations and documents you’ll have to provide.

As independent lawyers specialising in real estate in Spain, we have successfully assisted hundreds of international clients in buying bank repossessions. We know that this process is sometimes long and frustrating, so we recommend you be patient. Gathering as much information as possible about all the required documents beforehand also helps.

If you decide that investing in a repossessed property in Spain is a good option for you, contact us at and we will be glad to assist you with the legal procedures.