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useless legal advice

Last activity 12 June 2014 by Culebronchris

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Jakeway123

we used a cheap estate agent/abogado/conveyencer when we bought our property, he hooked us up with electricity illegally and when we got caught (we were in the uk at the time) we were fined 350 euros, even though we had paid him 350 euros to help us connect with endesa, we also have now been told by him, 3 months later that our property received a higher value than our initial 8% tax paid for and we now owe 3500 euros, he has not shown us any paperwork even though we've emailed and sent him texts, we are so worried we will now have to take further legal advice....more money. How many others have suffered the higher valuation?
Look forward to the replies.

campogirl

Sorry to hear about your problems.

I wonder if your solicitor was playing the white money blac k money game in collusion with the seller.  If the solicitor undervalues the property for tax purposes, the seller pays less tax as well as the buyer.When we bought the tax was on the sale price. I was not aware the price could be reassessed, so not sure why the house has received a "higher value" unless he has been caught playing this game.

If this is the case then unfortunately you may have to bight the bullet.  Could you perhaps find an English solicitor in Spain to establish what happened.

It is horror stories like this that always hit the papers.

Best luck

scotishjohn

welcome to Spain you need to get up before the birds

Jakeway123

You've got me worried now, because I've got the deeds for the house and i own 100% of it, our abogado says its value has been reassesed, you don't think he's pulling a fast one do you?

scotishjohn

i had my property since 84

campogirl

I am afraid the only way you will know will be to get a good solicitor to check with land registry.  Unless it is a new rule, as I said I have never heard of property being reassessed for sale value.  Its value is its value.  If a seller wanted tosell it for 100 euros that would be the sale value.  And the tax is based on the amount it is sold for.

I am seriously thinking the solicitor is pulling a scam.  If he declared a lower value than you paid, the buyer would not pay so much tax.  If you have the escritura take it to a solicitor.  It sounds like the solicitor has been caught out and needs to pay the extra tax.

Sorry I cant offer any other advise.

campogirl

Sorry I meant to say. Don't pay the solicitor anything till you speak to another (honest ) solicitor.

Johnzx

The 're-valuation' is the assessment by Hacienda of what they consider to be the true market value of the property when you bought it.  Thus they believe you under declared the purchase price and you are being required to pay the tax, they say was underpaid.

As for the electric.  You might try making a complaint against the agent using the 'Hojas de Reclamación'  (the complaints form).  It is printed in Spanish and English and can be completed in either language.  Keep it simple.

It consists of three pages of sensitized paper, along the long left side it shows which copy you give to the person complained of, the one for you and the one you also take marked for the consumer's office.  If after 2 weeks you have not received satisfaction, take the consumer's office copy to that office (part of the town hall) and they will pursue it. 

Do not be put off completing the form. If the agent puts things right in the 2 weeks then you do no more, but if he does not, you do not have to start again. 

If the person refuses to give you the form or says he does not have it. Immediately call the Policía Local, They should attend, fine him on the spot and close the business until the forms are produced.

I have used the system a number of times, including with the National Police, it has never failed to get an instant result.  No one who knows the problems it causes them as the person complained about,  wants to get involved in the process.

Good luck

PS                  Jake you said,   "I've got the deeds for the house."   You have a' copia simple'.    In Spain one never gets the originals.   Thus you do not need any copy when you sell, as you will  (if the process was completed correctly) be registered in the Property Registry of the town hall as the owner.  That should be noted on the bottom of your copia simple.  If you are not so registered the property could be sold without your knowledge.

Culebronchris

It's a strange thing this re-assessment of the value of a property based on the Catastral value. Lots of the Town Halls are involved because it's an easy way to rise a bit of extra cash.

It happened to some pals of mine. Amazingly, the amount of cash they'd handed over in a plastic bag as the undeclared part of the sale price at purchase time was quite a small percentage of the real price. Basically the price on the escritura was more or less correct and they paid the various taxes accordingly.

Later they were told that the value had been re-assessed and that value was significantly higher than the real price they had paid. They got a bill for something like 6,000 of unpaid taxes. Luckily they got the letter delivered within the time open for appeal they took it to a local "soicitor" who lodged an appeal, the demand for payment was frozen and the whole thing finally went away.

Johnzx

Culebronchris wrote:

................ Lots of the Town Halls are involved because it's an easy way to rise a bit of extra cash.


I have no doubt, as I said, "The 're-valuation' is the assessment by Hacienda"  and not the municipality

It is possible to ask the solicitor/notary or maybe the agent,  what the assessed value will be before completing a sale/purchase. In the 'old days' when declared values were almost always understated, I did it several times when selling to ensure I did not get a surprise afterwards.  I understand it is the catastral value multiplied by a number, which may vary with the location and 'quality' of the area.

Culebronchris

Just like I know who sent this particualr letter.

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