Wednesday, December 07, 2011
Dear Reader,
I’m often told by readers that they don’t want to pay for an attorney when buying an overseas property.
It’s too expensive, they say. Or, “I really don’t need an attorney. I’m a savvy buyer, I’ve bought property before, and I know what I’m doing”.
But what if I told you that your attorney could save you $198,000?
That’s how much a Costa Rican attorney we work with saved a reader. I met the attorney recently, and he mentioned the reader in passing. The reader was buying a home in Costa Rica, and recalled an article I’d written. I’d mentioned the importance of using a good, local attorney when purchasing.
Initially the reader thought he didn’t need an attorney. He’d checked the sale contract and it looked fine. But my advice to hire an attorney before you sign any contract rang in his ears. So he figured that getting an attorney on board to check the contract wouldn’t hurt. Especially as he was about to wire $198,000 to the seller the following day, to close the deal.
The attorney’s advice? Don’t wire, and cancel the sale. The seller faces lawsuits from existing buyers -who had wired him large sums of money, and still not moved into their homes. The “homes” were still raw land, several years after closing on their purchase. That’s the kind of information that you won’t find in a sale contract. You probably won’t find it online either, unless an angry buyers takes the time and trouble to post something.
Now, this isn’t to scare you off buying property overseas. Tens of thousands of people have done this – very successfully. This piece is to highlight the importance of hiring a decent local attorney-with that valuable local knowledge- who’s on your side. He’ll make sure everything stacks up before you commit to buying.
So next time you look at buying overseas, don’t think of an attorney as a high-ticket item you don’t need. Instead, think of the dollars and headaches a good attorney can save you. It’s not just the pitfalls he helps you avoid. Your attorney can negotiate changes to the contract on your behalf…get better terms and payment plans…and provide local knowledge on the seller and the property. A good attorney earns every cent of his fee.
Margaret Summerfield
P.S. Next week, you’ll find out why you sometimes need to look a gift horse in the mouth – especially when it comes to “free” attorneys.
Posted Under:
due diligence, opportunities, real estate opportunities, sale contract
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