Thinking of buying property abroad? It's a dream for many鈥攁nd with the right preparation, it can become reality. But just like buying a home in your own country, investing in real estate overseas comes with its own set of rules. Before you sign anything, make sure you understand the local laws, legal procedures, and required documents. Contracts, regulations, and paperwork can vary widely鈥攁nd so can the risks. So what should you look out for? What are the common mistakes to avoid?聽
Seek legal expertise when drafting the sales contract
Every country has its own real estate laws and procedures. Ignoring them鈥攐r cutting corners to save money鈥攃an cost you far more in the long run.
Take Spain, for example. There, it's the lawyer who drafts the sales contract. The notary's role is limited to witnessing the signing and registering the transaction. Some expats try to skip the lawyer to cut costs. That's a serious mistake. The lawyer is responsible for due diligence: reviewing legal documents, verifying ownership, and identifying any red flags.
In the U.S., lawyers often manage the entire transaction, including contracts and paperwork. In France, the notary handles the legal process. In Sweden, a licensed real estate agent plays a central role. In the UAE, hiring a lawyer is strongly recommended. In Dubai, the oversees registration, acting as a public notary.
The key takeaway? Learn how the property buying process works in your chosen country鈥攁nd ensure you involve the right professionals from the start.
Do not overlook Energy Performance Certificates (EPCs)
Do you know if you're buying a money pit or an energy-efficient home? Energy performance certificates (EPCs) are mandatory鈥攁nd critically important in many countries. These reports reveal how much energy a property consumes and can signal costly renovations ahead. Always obtain the certificate, read it carefully, and if needed, have it translated by a certified expert. When in doubt, consult a local property professional.
Understanding the EPC in France
In France, EPCs are required for all properties listed for sale or rent. The rating must appear clearly in advertisements and is included with the preliminary sales agreement, along with other mandatory diagnostic reports. Ratings range from A (energy-efficient) to G (high consumption). The seller is legally responsible for obtaining and paying for the EPC.
Never agree to reimburse the seller for the cost of this or any other diagnostic report鈥攕uch requests are illegal in France.
Watch out for EPC fraud
Some sellers attempt to game the system with fraudulent certificates. A common scheme involves collusion between the seller and an assessor to artificially boost the rating鈥攕ay, from F to D. In France, a property rated F or G is classified as an 鈥渆nergy sieve鈥� and must undergo a full energy audit before sale (a requirement since 2023). An inflated rating can mislead buyers and bypass these legal obligations.
Keep in mind that a better EPC rating isn't just about environmental impact鈥攊t can affect your future utility costs, renovation needs, and resale value.
Getting a second opinion
If you're unsure about the accuracy of an EPC, you can commission a second assessment. Just be aware: EPC pricing isn't tightly regulated in many countries. Rates vary depending on the property type and assessor. In France, the average cost ranges from 鈧�100 to 鈧�250. The seller must pay for the first certificate鈥攂ut if you request a second, you'll usually bear the cost.
If the two assessments show major discrepancies, you may have grounds for legal action or negotiation.
EPC standards vary by country
Don't assume all diagnostics are created equal. The scope, quality, and enforcement of property inspections differ widely between countries. For example, technical checks in Italy, Spain, or Portugal are generally less rigorous than those in France.
Familiarize yourself with local EPC standards, or work with an expert who knows how to interpret them.
Avoid falling victim to title fraud
Most buyers take property titles at face value, but that can be costly. Title fraud is a growing threat worldwide, especially in countries like France and Canada. In these cases, fraudsters impersonate the rightful owner or forge documents to sell or mortgage property they don't actually own. Once the transaction is complete, they vanish with the money鈥攍eaving the real owner to discover the property has been unlawfully sold or encumbered.
If you already own property abroad, check your ownership status regularly in the official land registry. Verifying that your name is still listed as the legal owner can help you detect unauthorized changes early鈥攁nd act before damage is done.
As a buyer, never assume the title is legitimate鈥攅specially if anything about the transaction seems unusual. If you have any doubts about the seller's identity or authority, consult a real estate lawyer. They can verify ownership directly with the local land registry and confirm that the title is free from liens or legal disputes.
If you discover you've been defrauded after the sale, act quickly. Report the case to local authorities and the land registry as soon as possible. Legal action may be necessary to recover funds or reverse the transaction鈥攂ut time is critical in these situations.
What about hidden mortgages? This time, the seller is legitimate鈥攂ut you later learn the property is mortgaged. The previous owner may have unpaid debts. To avoid costly and lengthy legal issues, hire a lawyer who specializes in real estate contracts. Lawyers have access to the land registry and can confirm whether a property is mortgaged or if the title is legitimate.
Never sign a fake contract to pay less
It's illegal鈥攂ut more common than you might think. In some transactions, the buyer and seller agree to declare a lower purchase price in the official contract to reduce taxes. The difference is paid in cash, under the table. While both parties may save money upfront, the risks are serious. If the authorities uncover the scheme, expect heavy fines and possible legal action.
This kind of arrangement is especially dangerous when buying property abroad. Language barriers and unfamiliar legal systems make you more vulnerable. Some sellers or agents may suggest it's common practice鈥攂ut that doesn't make it legal.
Always refuse these kinds of 鈥渄eals.鈥� Work only with certified professionals鈥攍awyers, notaries, or licensed agents鈥攚ho follow the law and protect your interests. Cutting corners to save on taxes can cost you far more in the end.
Do not underestimate the importance of physical visits
Buying property remotely can be convenient鈥攂ut it comes with real risks. Unless you have someone trustworthy who can visit the property multiple times, it's essential that you go see it in person. Avoid making decisions based on first impressions. A home that seems peaceful and sunny in the morning might be loud and chaotic by evening.
Many expats focus on practical priorities like access to transport, schools, or work. These are valid concerns, but just as important is visiting the property at different times of day鈥攎orning, afternoon, evening, and even late at night if you can. Conditions can change drastically depending on the time.
Some property experts also recommend visiting in different seasons to get a better sense of lighting, temperature, and surrounding activity. Of course, this isn't always possible鈥攅specially if the seller is pushing for a quick decision. Still, the more you can observe before committing, the fewer surprises you'll face later.
Do not underestimate the full financial commitment
The purchase price is just one part of the total cost. You'll also need to factor in taxes, agency fees, bank charges, notary or legal fees, insurance, and expert assessments. Many foreign buyers overlook these additional鈥攁nd sometimes hidden鈥攅xpenses. What seems like a bargain, especially when buying in a weaker currency, can quickly become more expensive than expected.
Don't count on favorable exchange rates lasting. Make sure you have the financial flexibility to cover the full cost of the investment, regardless of how the market moves.
Your checklist for avoiding scams when buying property abroad
When buying property abroad, it's not enough to rely solely on local professionals. In addition to hiring a local expert, consult a lawyer or notary from your own country who specializes in international real estate. They may be able to recommend trusted contacts in your destination country.
Before committing to any purchase, find out exactly what documents are required. Are you even legally allowed to buy property with your current residence status? In Italy, for instance, you'll need a . In Spain, a is mandatory.
Take time to understand the local real estate laws. In Spain, for example, the buyer鈥攏ot the notary鈥攊s responsible for confirming that the property is legally sound. In both Portugal and Spain, notaries are not required to check for existing mortgages or liens. This makes hiring a qualified real estate lawyer critical to protect your interests.
Working with local experts doesn't absolve you of responsibility. You are still accountable for what you sign. Double-check the information you receive. Don't rely on verbal promises. Always ask for written confirmation, seek second opinions when necessary, and never pay a deposit before reviewing a fully compliant, legally binding contract.
