Private Property for Sale in Andorra
- elizabethhelenpier
- Dec 17, 2024
- 4 min read
Updated: Mar 8
Private property for sale in Andorra (that do not involve a listing agency), is hard to come by, but does exist. There are both benefits and drawbacks of completing on a private sale, over an agency led one. The process will also differ slightly as there will be more work to do on your side but the benefits concerning the price can counteract this.
What is the buying process like with private sales?
Much like when you buy a property via a realtor in Andorra, you will sign a buy-sale agreement and pay a 10% deposit on the signing of this contract. This type of legal agreement can be written up by anyone with legal or real estate knowledge in Andorra. You should be vigilant however of the contents if not written by your party, as the conditions are often favouring the sellers. Make sure to get a trusted party to look over the contract before signing whether this be a lawyer or a buying agent like us.
You will also need the foreign investment application completed if you have spent less than three years living in Andorra or are a foreign investor. As a private individual this may complicate your story slightly. You are better off getting help with the application but be careful not to get swindled as some lawyer’s offices may charge exponential prices for this. You are better off finding a private real estate expert such as a buying agent to help you with your foreign investment application.
You will be expected to arrange the notary appointment yourself and at this point things start to get a little simpler. The notary office will inform you how to pay your ITP tax and will inform the seller of all the documents needed to complete the sale. They will only book the appointment once you have all the documents together.
Benefits of buying private property for sale in Andorra
Principally the benefit of any private sale is going to be price negotiation. A seller using an estate agency to promote their property will be paying 5% commission fees on sale to the realtor. These fees through private sale are completely avoided. This means there will likely be much more wiggle room when negotiating on the price. Depending on the owner, they will often advertise their property at a more appropriate value, as they are looking for an easy sale. Having direct contact with the property owner can sometimes create a more trusting bond than through traditional estate agents, though this is not always the case.
Cons of private property sales
Many people would rather have professionals involved to assure the sale runs smoothly and according to legal requirements. The major drawback of private sales is surrounding the concept of trust. Handing over a 10% deposit of the agreed price without direct realtor involvement can feel like a risky step for some. The reality is that the same laws protect your deposit in a private sale as with a sale settled via a real estate agency. If there were any issues with the property and you needed to pull out, getting the deposit back could be complicated in either case and as of such, you would need legal advice in any situation. The other drawback is the fact you must do the paperwork yourself. This can be time consuming and complicated if you do not speak the local language.
What to consider before getting involved in a private property sale in Andorra:
Firstly, that there are many laws on ground which protect you when looking at private property for sale in Andorra. Your deposit is legally protected in the same way it would be if working with a realtor. The notary will neither book the appointment for the sale unless the seller can produce all the necessary legal documents to sell the property. In this sense it is impossible to accidentally get involved in a dodgy or illegal sale.
If you visit a property with a realtor and then proceed to visit it privately, the real estate agency you saw it with, will have a legal right to their commission even if you continue with a private sale.
If you have spoken with a realtor about a property but not yet visited the property, you can continue with a private sale. You are not obliged to purchase via the agency, they may however put up a fuss for their commission but are in no legal standing if you have never visited the place with them.
Due to our business philosophy, we are the only agency in Andorra that offer private property sale consulting where we do not work on a commission basis rather on returnable deposit fees instead. Do not hesitate to contact us if you would like some advice surrounding private property for sale in Andorra.
