House Purchase

[Trumpy]

Hi,

Im buying a place in Costa Caletta and Ive just been told that I have to pay for it with a bankers check it will cost me 300 euro for the bankers check is this true or is there anyway around it?

[SheilaW]

Have you set up a local bank account? And have you given your lawyer here power of attorney over it? If the answer to both is "yes" then you can transfer money into it (well before the date it's needed) and the lawyer will withdraw the funds locally.

[Trumpy]

Sheila Thanks for the response,  I have a local account with Banca March and have transfered the funds to it, I was told on the day we go to the Notary I would have to take a Certified bankers check and the bank will charge me 300 euro and this was how it was done. Is this true or am beeing led up a garden path here

[SheilaW]

Well, we weren't there on the day, and with the lawyer having powers to play with our money as she saw fit , things did get a bit confusing. We don't remember anything like that amount in bank charges, though - they'd have appeared on the bank statement.

Update - I just looked at our bank online, and we were charged 50€ for a bankers cheque of 79,000€. That's with Sabadell and it seems to be the maximum they charge (with a minimum of 4.50€). Maybe your bank doesn't have a limit!

[Trumpy]

Thanks OK so I am being fibbed to as the agent told me all Spanish Banks would charge this.

[emmi]

I think you'll find there is a scale of charges for a Certified Banker's cheque depending on the amount.  But it is easy enough to find out by phoning Banca March and asking them what it would cost for the amount you need. There are always people there who speak English.

[ianflyinghigh]

I know when I bought in 2007, I just turned up at the Notary Office, I didn't do or wasn't asked for any bankers draft?

[Keith Dean]

Trumpy
This happened to me a few years ago in England. I object to giving some one else money, so I could spend MY OWN MONEY. My answer, I asked for it in cash. The bank teller went away, came back and said they would waver the charge. She then asked if I wanted the Bank Draft in an envelope, my answer, only if it's FREE, I GOT ONE!!!!!

[emmi]

I'd love to see the look on the faces of the Banca March cashiers if you asked for the property  purchase amount in cash to avoid the charge for the draft.!!!!  I'd have loved to have done that.!

[lionfish]

Would love to see your face too when you turn up at the notary with the cash only to find that it's not acceptable owing to the new money laundering regulations. I don't suppose these banks have you over a barrel do they?

[Keith Dean]

Lionfish Interesting point you make, but from what Trumpy has said HIS money is already in a bank in Fuerteventura and a paper trail will be in existence to where it has come from, showing he has already paid bank charges for the transfer. When he collects it from the bank, paperwork would be involved again. I would say that's enough proof to where the money has come from.

[PHo]

It is against the law in Spain to pay for anything in cash over a limit which I think is 2500 euros.  Both you and the recipient can be fined.  it's about tax avoidance as well as money laundering.

[Explorer]

Would love to see your face too when you turn up at the notary with the cash only to find that it's not acceptable owing to the new money laundering regulations. I don't suppose these banks have you over a barrel do they?

Not to mention the risk of being robbed...

[g121ffs]

I purchased in July and the bank charged me 202.50e for a bankers draft.

[chollis]

Spanish banks usually charge a percentage of the total amount for a bankers draft making them considerably expensive. Most lawyers who are dealing with house purchases have arrangments with the bank to not have to pay for bankers drafts. If your lawyer has a protected client account, transfer the money to your lawyers account ahead of the purchase and have the lawyer make the payment at notary.