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You most likely know what house, life and car insurance are. The Safe Property Guarantee (Title Insurance), brought
to you by the MHI Group is a new product in Spain, but is already well-known in the United States, Great Britain and the rest of Europe. To be able to understand why it is so important to have this
protection, set out below is a list of some scenarios for which coverage is included should they affect your property at the time of purchase but without your knowledge:
Fraud: Document forgery
Current technology makes it easy to forge all types of documents (i.e. National ID Cards, Deeds, Power of Attorney,
etc). There are stories in the press regularly about well-organised groups of forgers.
Fraud: They sell your house
What would you do if a gang of swindlers - as happened recently - faked your identity, sold your house to a third
party for a derisory price and took off with the money? In the interests of the reliability of the law, there are numerous cases where the Spanish Supreme Court has ruled in favour of a third party
purchasing property in good faith. You could lose your home.
Fraud: They re-mortgage your house
What if they fake your identity and pass themselves off as the owners of your house, apply for a mortgage loan and
take the funds?
Fraud: Buying from a fraudulent owner
After several years have gone by, you discover that the person from whom you bought your home was not the real
owner and was acting with forged or revoked powers.
Fraudulent Sale: Ad Corpus
Even when some time has gone by, there are numerous cases in which it is discovered that part of a home does not
belong to the person who has bought it. For example: a terrace turns out to be common property, which has been fraudulently added to the plot by the previous owners.
Border Disputes
Your neighbour says that the home you bought occupies some of the land belonging to him.
Bankruptcy of the Seller
A judge rules that your property is subject to the previous owner's bankruptcy (preferential rights of the
creditors).
Marital Problems
• You start separation proceedings and your partner says that the house you lived in is his/her exclusive
property and you have no rights over it.
• The person from whom you bought your home has sold it without spousal consent and that threatens your title to
the property. If there is a minor child involved, you will not able to access the home you have bought.
Demolition Order
• Imagine that after several years, a Demolition Order is placed on your house because it is shown that the Local
Authority building licence by virtue of which it was built, is illegal and infringed land classification (Urban Planning Scheme), environmental and coastal laws at the time of purchase or simply because
your house was built without a license or in breach of the terms of the building license.
• You can also discover that an alteration made on the home by the previous owner is illegal.
Compulsory Purchase
You discover your house is subject to a compulsory purchase order or proceedings which predated your purchase.
There are cases when not only is your land compulsorily purchased but you will also have to pay a large administrative fine.
Other Administrative Orders in Force
You discover your house is subject to a ruin or eviction order from your date of purchase.
Purchase from an Incapable Seller
You discover that the person from whom you bought the home lacked the necessary legal capacity to sell.
Non-inscription in the Land Register
The Land Registrar finds a defect in your title deeds and will not register you as the owner.
Defective Size
If the property is bought 'off plan' and following physical completion it is found to be more than 10% smaller than
what was contracted for.
Legal Claims against your Property
During the policy term a third party makes a claim for part of your property through the courts.
Exclusions: Damage. Contamination. All defects in the knowledge of the owner prior to the date this product
takes effect.
Unknown Heirs
• Property owners or unknown heirs from the past appear to claim their property.
• It is determined whether there has been mistaken interpretation during the most recent transactions.
Unpaid Taxes, Quotas or Unsettled Community Expenses
During the next 20 years:
• You discover you have been paying too much in community fees because at the time of purchase your property was
assigned the wrong coefficient.
• There is an attempt to make you pay an incorrect quota or unsettled community expenses for a period prior to
your purchase time.
• Or for example, there are outstanding taxes that must not be paid by error or omission. etc.
Third Party Rights: Easements
During the 20 year policy term, a right of way or unregistered charge in favour of a third party is discovered that
affects the property (Right in Rem of third party).
Hidden Legal Defects
During the 20 year policy term you may find a mistake or discrepancy in the title deeds that makes it impossible or
difficult to sell your home or that limits your rights of ownership or enjoyment.
Hidden Valid Lease
You have bought a house that has previous to your purchase been leased to a third party. The lease is valid until
it expires, regardless of who holds title to the property.
Impossible to Access
If for any reason your home, garage or storeroom cannot be accessed, you will be covered. For example, the seller
may not vacate the premises on completion, the garage is too small and you cannot park, you are not given the storeroom you purchased, etc.
Community Disputes
Over the course of the 20 years, you may discover agreements passed by the Community of Property Owners that could
limit your rights over the property.
Lack of Occupancy Permit
Prices for the package start at just €995 plus tax for a
property in Murcia Province costing €125,000 or less. Ask for a written quotation for higher value properties or properties in other Provinces. .
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