Double sales and hidden debts on property abroad

Not every problem with a property abroad is a crime. Many come from ordinary seller behaviour: a mortgage that is not mentioned, an extension built without a permit, community fees that have not been paid for two years. Some are deliberate, such as the same property being promised to two buyers. In both cases the buyer ends up with a legal problem that is expensive to remove. This article explains the typical mechanisms and the checks that prevent them. It is general and informational; rules differ by country and the examples of countries below are summaries, not legal advice.

The same property sold twice

In countries where a sale becomes effective when the contract is signed, and registration comes later, there is a window between signing and registration. A dishonest seller (or one who is careless) can sign a second contract, or take a mortgage, in that window. Whichever buyer registers first often has the stronger claim, though the rules vary by country and by whether the buyer acted in good faith. Hypothetical illustration: a buyer pays a deposit and signs a private preliminary contract, and the registration happens weeks later; meanwhile the seller signs another preliminary contract at a higher price.

How a lawyer reduces the risk:

• Obtains an up-to-date extract from the land registry immediately before signing and again shortly before payment.
• Where the system allows, registers a priority notice, a caution or a preliminary-contract entry, so that later sales are blocked or visible.
• Makes sure the contract and payment structure match the stage: the money is released against registration, not against promises.
• Uses a notary or a lawyer's client account for the funds, so that they are not released before the registered transfer.

See also notary or lawyer: who do you need abroad and remote signing and closing a property deal abroad.

Mortgages, liens and attachments that are not shown

A registered mortgage, a court attachment or a tax lien generally stays attached to the property when it is sold, unless it is cleared at completion. Sellers sometimes do not mention it, hoping to pay it off from the buyer's money, or the lender or the court has registered something the seller did not expect. The extract from the registry is where these appear: in Spain the simple extract from the Land Registry (nota simple) shows the owner and registered charges such as mortgages and embargoes; in Turkey, annotations on the title deed (tapu) should be read before signing and a mortgage annotation has to be cleared before the sale proceeds. Other countries have an equivalent extract; ask your lawyer which one and what it does not show.

Practical rules:

• A seller's mortgage is repaid from the sale price at completion, with the lender's written confirmation that the charge will be cancelled, not by a promise.
• Never accept a "clean" document that the seller produced; the lawyer orders it from the registry.
• Check whether a judgment or tax debt of the seller can attach to the property under local law.

Unpaid community fees, taxes and utilities

Some running debts follow the property, not the person. In Spain, community charges for the current and previous year can generally be claimed from the new owner, and an unpaid IBI property tax can be a charge on the property (summaries by law firms; confirm with the lawyer). Similar rules exist in other countries with condominiums. Hypothetical example: a flat has two years of unpaid community fees; the new owner learns about it from the first letter from the administrator. The remedy is a certificate from the community administrator confirming that the seller is up to date, and proof that tax and utility bills are paid. See utilities and community fees for foreign owners.

Illegal builds and missing permits

A house with an extension, a pool, a closed balcony or an extra floor without permits can be fined, ordered to be modified or in some cases demolished, and the problem may attach to the property rather than the person who built it. It can also stop the registry or the bank from dealing with it. What to ask for: the building permit and the final completion or occupancy certificate (in Turkey the occupancy permit, iskan; in Spain the occupation licence and the registered description of the building) and proof that what stands on the plot matches what is in the registry and the cadastre.

Countries where we see recurring discussion, with hedged summaries:

• Spain. Buyers are advised to check that the building and any extension are registered and licensed, and that the occupation licence exists; an unresolved planning irregularity is much harder to fix after you own the property. See the Spain resale checklist.
• Cyprus. The press has reported for years that thousands of buyers cannot obtain title deeds, mostly because the developer's final planning or building permits are missing, or because the developer has a mortgage on the land. The government has discussed measures to resolve it; do not assume that they are in force. The UK government guidance on buying property in Cyprus also covers title deeds (gov.uk). See the Cyprus resale checklist.
• Bulgaria. Check the register and the building's act of commissioning, and whether the developer's obligations to the owners' association are settled; see the Bulgaria resale checklist.
• Turkey. Check the tapu for annotations, whether the building has the occupancy permit, and whether the area has restrictions for foreign buyers; see the Turkey resale checklist.

What a title search covers and what it does not

A title or registry search shows who is registered as owner, the legal description, and registered charges. It generally does not show an unregistered lease, a boundary dispute, unpaid fees, planning problems on the ground, or fraud in the identity of the seller. This is why the lawyer combines the registry extract with a municipal planning check, a certificate from the community, an inspection of the property and an identity check. The general order is in our pre-purchase checklist.

A short prevention plan

• Instruct an independent lawyer in the property's country, who does not work for the seller.
• Order a fresh registry extract before signing and before payment.
• Get written confirmation for the debts: lender, community, tax office and utilities.
• Match the building to the permits.
• Pay through a notary or client account, against registration.
• Insure the purchase where title insurance is available, and see home insurance for non-resident owners.

FAQ

Does a notarial contract protect me from a double sale? Not on its own. It proves the contract, but in many systems the registration decides priority. Ask the lawyer how the local system works.

Can I inherit the seller's debts? Charges registered against the property and some running costs follow the property. Personal debts of the seller generally do not, but they can lead to a court attachment against the property.

Is a "sold with all debts cleared" statement enough? No. You need documents: a lender's letter, a community certificate, receipts of tax payments and a fresh registry extract.

What if I find a problem after I have bought? Contact a local lawyer quickly. The remedies depend on the contract, the registry and the seller's solvency, and some claims expire.

Is title insurance available everywhere? No. It is common in some markets and rare in others; ask the lawyer whether it exists and what it covers.

How we help

We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers who order registry extracts, check permits and debts and structure the payment before you commit. This text is informational and is not legal, tax or investment advice; rules differ by country and change, so verify the current position with a local lawyer.