Buying a Riad Property in Marrakech - A Rough Guide

Marrakech has always been a popular destination for discerning tourists and with arrivals currently increasing 9% per annum it is easy to see why the riad guesthouse market is booming. The Moroccan government expects to receive over 3 million international visitors to Marrakech by the end of 2010 - over 30% of the total number of visitors to Morocco.
Riads are urban houses situated in the Marrakech medina (old city). With traditional Moroccan architecture and furnishings, combined with beautiful private courtyards and terraces the Marrakech riad property offers the combination of urban living and a peaceful, engaging environment away from the hustle and bustle of the city. Moroccan artisans are often employed to hand make intricate mosaics (zellige), woodcarvings and ironmongery that combine to make riad interiors truly unique and special places.
Morocco means Marrakech and Marrakech means Riads. Due to the captivating style and appeal of these properties, occupancy rates in guesthouses can reach as high as 90% per annum and with some of the best charging over EUR500 per night, the renovation and rental of riad property is now an extremely attractive investment opportunity. Once a riad guesthouse has an established client base, the property and business can be sold for many times their original value.
One of the most important things to remember when buying a riad is to ensure that the title is clearly recognised. Morocco modernised its land registry in 2000 and many riad owners have not yet had the original title documents (called "Melkia") updated. These old documents are not recognised by the new system so make sure you use a reputable international estate agent who knows all about this. To have the old title updated can take a long time (few months to a year) so if you want to move quickly make sure that the riad you are buying has a modern title. However, if you are prepared to wait, then a local Notary will charge a small fee to do the necessary work.
If you are considering buying a riad property in Marrakech, here are some useful tips to help you.
1. Moroccan finance is NOT available for riads. This is a cash market only.
2. Visit for an extended period (long weekend at least) and be prepared to re-visit if necessary.
3. As the Medina is large and confusing, you are best advised to select the area in which you would like to purchase before you visit. A reputable international estate agent will be able to help you with this.
4. Make sure that you take a camera with you!
5. If you find what you are looking for, 10% will normally be required to completely secure the property.
6. An independent Notary will hold this deposit in a secure client escrow account while the sales particulars are substantiated and exchange / completion are organised (called the Compromis De Vente and Acte De Vente).
7. A reputable international estate agent will be able to recommend a good local notary.
8. Fees to be expected during the buying process amount to approx. 7% and include:
a. Notary - 1%
b. Stamp duty - 2.5%
c. Miscellaneous - 1%
d. Agent fees - 2.5% (5% shared 50/50 by the buyer and seller)
9. The final price will be in Moroccan Dirhams. As the sale may have been agreed in Euros for simplicity (common) you may need to agree the exchange rate before completion.
10. Exchange and completion can be arranged and concluded at the same time in Marrakech in the presence of the buyer, seller and the notary. All monies need to be available in the Notary's account in advance of this meeting along with all costs.
11. If you are restoring a very old riad you can assume the costs will be around the same price as you pay for the property (to cover a comprehensive rebuild and refit of property / utilities). Alternatively, for a younger property, assume EUR500 - EUR750 per m2 for a high quality renovation. A reputable agent will be able to help you with this.

How to Buy a Home in Italy - A Short Guide to Purchase Process in Italy

Basically, purchasing property in Italy consists of these three steps: purchase offer, preliminary agreement ("compromesso" in Italian) and finally the deed of sale ("rogito" in Italian). Only the last of these steps is strictly mandatory, because it is the source of the transcription of property change at the Land Register ("Registro Immobiliare" or "Catasto"). Anyway, the preliminary agreement ("compromesso") is largely used, as it is a private agreement stating the price and the other conditions (e.g. the payment plan), committing the parties until the price is fully paid and the final deed can be done. The following description is intended to supply minimal information to orientate a prospective buyer. it is advisable to have the assistance of a lawyer or a notary through every step of the process.
The Fiscal Code
To accomplish the process, you will need the "codice fiscale" This is a personal identification code which can easily be obtained at every local office of the Tax Agency ("Agenzia delle Entrate"). The "codice fiscale" is needed for the "rogito", but it is also required to open a bank account, to activate the various utilities (electricity, telephone, gas, water etc.) and to pay the taxes on the house (ICI and waste tax).
Important Checks Before Buying
It is a good idea to check the property at the Land Register, before to make a formal offer or to sign the "compromesso". This is intended to verify that the vendor has the title rights to sell the house and that there are not mortgage or other constraints on the property. You should also verify (a surveyor can do that) that the dwelling is compliant to building regulations. For a good estimate of the expenses required, you should consider the additional costs of buying (taxes, intermediation fee, notary fee etc.) and the costs of running the house, especially the condominium expenses, which may be considerable and that the vendor must document to the buyer. All these costs are better detailed later.
Purchase Offer
The main purpose of the purchase offer is to show to the vendor your serious intention to buy the house and to get from him a clear response (acceptance or refusal). The buyer makes the offer to the vendor declaring his willingness to buy the house at a certain price until a certain date, if the vendor accepts it, he cannot sell the house to anyone else. Since the purchase offer is not a revocable commitment to buy, the best thing is to have the assistance of a lawyer or a notary before signing it. The agent or the vendor may push to have a deposit, but indeed the buyer is not required to pay any sum at the purchase offer. Anyway, if a deposit is paid, it must be entirely refunded if the vendor does not accept the offer.
Preliminary Agreement ("compromesso")
The preliminary agreement is a private contract between the buyer and the vendor which states all the terms and conditions of the sale: the price, the payment plan, the date of the "rogito", all particulars of the property (servitude etc) and other particular conditions which may apply to the sale. Signing the agreement, the buyer pays a deposit (called "caparra") usually equalling 10% of the agreed price. If he withdraws, he will loose the deposit. If the seller withdraws, he will pay twice the amount of the deposit.
The Deed of Purchase ("rogito")
This is the contract which completes the sale. It has a public form. Both parties (the buyer and the vendor) sign the contract in the presence of a notary. The "rogito" is done only when the agreed price is paid: usually, the balance is paid at the moment of the deed. As praxis, the notary is chosen by the buyer, since he pays the fee. The notary has to ensure the identity of the parts and the legality of the deed. He also collects the taxes (see later), registers the deed (within twenty days) and transcribes it at the Land Register.
Costs and Taxes
Among the costs of buying, you should consider:

• Estate agent fee (usually 3% of the price plus VAT 20%).
• Notary fee (quite variable, indicatively between 1,500 and 3,500 Euros or more, depending on the house price and other conditions).
• VAT (10% of the price) if the house is bought from the company which built or restructured it.
• Registration Tax ("tassa di registro"): 168 Euros if the house is bought from the company, 7% of cadastral value (i.e. the value the house is registered: usually it is much less than the market value) if the house is bought from a private owner.
• Mortgage Tax ("imposta ipotecaria"): 168 Euros if the house is bought from a company, 2% of cadastral value if the house is bought from a private owner.
• Cadastral Tax ("imposta catastale"): 168 Euros if the house is bought from a company, 1% of cadastral value if the house is bought from a private owner.

In conclusion, if you buy the house from the company which built or restructured it, you pay 10% VAT, calculated on the declared price of the house (i.e. the value written on the "rogito"), plus 504 Euros for the other taxes (Registration, Mortgage, Cadastral). If you buy the house from a private owner, you do not pay VAT but a total of 10% on the cadastral value of the house for Registration, Mortgage, Cadastral taxes. To be more exact, the law let you choice between paying on the declared price or on the cadastral value, which is generally much less than the market price. This is intended to avoid having the parties declare a price lower than true to save money on taxes.
Among the costs of running the house, you should consider, in addition to the expenses for utilities:

• Local Tax on the Properties (ICI: "Imposta Comunale sugli Immobili"). This is paid to the Municipality where the house is situated. It is payable in two parts, in June and December. It is a percentage of the "house value". The "house value" is defined as equal to the cadastral rent ("rendita catastale") multiplied by 100. The Municipality has the faculty to fix the rate (called "aliquota ICI") in a range of 4 to 7 x mille. For example: if the "aliquota ICI" is 7 x mille and cadastral rent is 600 Euros, the house is valued at 60,000 Euros and the ICI tax to pay is 420 Euros (i.e. 7 x mille of 60.000 Euros).
• Waste Tax: it covers the cost of collecting garbage and depends on the surface (SQM) of the house and the number of resident people. For a 100 SQM house with four people, you can expect something as 300 Euros/year.
• Condominium expenses: they are the yearly expenses for the condominium common services (lights, garden, lifts, cleaning etc.). The vendor should give evidence of the amount of these expenses to the buyer. He also has to show having paid tose amounts for the current and the past year. If the vendor has not paid, the buyer can be asked to pay in his place.

Court Reporting Hiccups: Swearing in a Witness

One of the duties of a court reporter is putting a witness under oath, most often as a notary public. While this may sound simple, there are occasionally quirky things that happen that make it difficult or impossible to do so. These are just a few of the hiccups that court reporters may face on the job.
By Telephone
While some states still allow telephonic depositions where the witness is sworn in via telephone, many states do not allow it. The Florida court reporter, for example, is not allowed to swear in the witness via telephone. Neither is the Virginia court reporter. They can still take the person's testimony, but it cannot state that the witness was sworn. If a notary is physically present at the other location with the witness and can positively identify the person, the notary then creates and signs a certificate validating the identity of the witness. A similar process is in place for videoconferencing in some states as well. If this is not allowed by the state's notary office, the attorneys will need to arrange for a court reporter to swear in and take down the testimony in the physical presence of the witness while the lawyers are on the telephone at another location. Although some attorneys may attempt to stipulate that the witness' testimony may be used in a court of law regardless of the notary's ability to swear them in, this is still not allowed in some states, such as Virginia.
Uncooperative Witness
There are people in the world who will not swear, and those who will not say the common words of an oath, "so help me God." There are also those who have no problem doing so unless their adversary is in the room and they choose to be difficult simply for the sake of doing so. Most states will allow the witness to affirm, rather than swear. This can also be done in most venues without a bible. When placing the witness under oath, this hiccup can be avoided by the notary public saying "swear or affirm," so long as it is acceptable by the state notary office or clerk of court in that jurisdiction.
Children
While children are seldom used as witnesses in litigation, it is sometimes necessary to place them under oath. There is often debate about a child's ability to swear. Instead, they can be "promised to tell the truth." The attorney or judge conducting the examination will need to demonstrate the child's ability to understand the difference between the truth and a lie. They will also need to demonstrate that the child understands the seriousness and possible repercussions if they do not tell the truth. Once these are established, the child's testimony may be taken and the questioning may begin.
Name
In a noisy courtroom, it is sometimes difficult to hear or understand the name of the next witness as they are called. Judges and attorneys sometimes forget to enunciate or ask the witness to do so. They may not know how to spell the person's name and do not think to ask the witness to do that either. In the event that legal transcription services are ordered, the court reporter may need to check the court file or call the attorney's office for positive confirmation of the identity of the individual.

DOH! A Home Biz Even Homer Simpson Could Do

Everyone likes Homer Simpson, moron that he is, because let's face it--there is a little Homer in all of us. Have you ever come across a business opportunity you would have liked to try but didn't because you were afraid of your own ineptitude? Well, leave your fears aside fellow Homer Simpsonites because here is a business you can start with your eyes closed and your brains on hibernation mode--Loan Signing!
Loan signers, Notary signing agents, loan signing agents, mobile Notaries, all of these terms have been used interchangeably and they all describe the same thing--a traveling Notary Public (and no, Homer, that's not an island country somewhere in the Bahamas). A loan signing agent goes to a borrower's home to witness the signing of loan documents. Of course you need a few supplies (like your Notary ledger), but I'm not going to get into particulars in this article. What you really want to know is, how do you get started, what is the work like, and how much can you make right?
To get started you can join a Notary Association, most of them have a signing agent section. There you will find more of the basics to getting started with this business and get your name listed. They will all try to sell you some really expensive loan signing classes but that is completely up to you. The smart, un-Homer thing to do is a search for some Notary signing agent message boards where you can learn how to get started for free. The process is very simple and involves a small fee to get a license, ledger, and certificate with your county.
The work is even simpler. A client (usually a title company that found your name through a Notary association listing) calls you and asks if you want to do a signing. They fax a contract that states how much you'll get paid, or how much you won't get paid if you don't do your job right etc. After you accept, they send you the loan package by fax or email. You then call the borrower to schedule a time frame for the signing which usually takes an hour. You watch the borrowers sign their papers, you sign and stamp a couple yourself, the borrowers get a copy of the loan package, and you get one to overnight back to your client. Yes, I've simplified the process a bit, but not by much.
Borrowers will ask you what every piece of paper means and will try to get you to decipher the never-ending stream of legalize contained therein but guess what? You don't have to explain anything to them; in fact, you're not legally allowed to because you are not a lawyer (unless you're also a lawyer--in that case, kudos for you). You simply explain that you are there only to witness the signing of the documents and you refer their questions back to their lender.
How much do you get paid? There are various factors that come into play, such as location, how long you've had to build up a clientele, the client's policies, etc. but you can figure as a complete newbie, to make about $75 a signing. Not bad for an hour's worth of work eh? Soon you might even be able to tell Mr. Burns to go shove it.

Successfully Buying Property in Spain - Part 2 of 2

Steps 3 and 4 - PURCHASING AND OWNING
Step 3 - PURCHASING
Do I need UK professionals?
Well, it's a fairly straightforward process that most people, obviously using a measure of common sense, should handle easily. Equally, no matter who you pay or which UK professional you use, the legal documents still have to be passed by the Spanish Notaire and, under their supervision, property problems and litigations are lower in Spain than in England.
All our agents are fully trained, have long experience of non Spanish clients, are ENGLISH SPEAKING and will guide you through the whole process, at NO EXTRA CHARGE.
After all, if they didn't, you probably wouldn't recommend us to your friends.
1 - Making an Offer
Just like people in the UK, some owners will accept an offer and others won't. Your agent should know whether the owner will accept and, if so, within what range - so use his knowledge. After all, he wants to find a suitable property for you as much as your do.
If you can afford the time, it's generally a good idea to leave your last day free of appointments. This will allow you time to review the properties you've seen and if you've made your mind up, sort out the paperwork without being rushed into mistakes.
2 - Signing the Contract
1. It will be necessary for you to have a Tax Identification number to purchase a property; it is sufficient at the time of purchasing your property to have put in place the steps to acquire such a number. In Spain each person is assigned a tax identification number (NIE) which must be used on all communications addressed to the Tax authorities.
In general the NIF of a Spanish national is their National Identification Number (DNI), in the case of foreign nationals the NIE is their Foreign Identification Number (NIE). These identification numbers are issued by the Directorate General of the Police, our agencies will able to assist you with obtaining your NIE to purchase your property.
You now have to apply in person for NIE certificates - our professional staff will accompany you. This service, along with opening a bank account is free to our clients.
2. Once a price has been agreed between, purchaser and vendor, both parties should sign a contract; Contrato privado de compraventa, this is provided by the selling agent and sets down the details of the exact location of the property, the price agreed, name of the vendor or the vendor's representative and the name of the purchaser or the purchaser's representative and finally the date of completion, which can be as quick as 5 days to approximately 3 months.
There are conditions attached to the contract which stipulate that should the prospective purchaser fail to complete, the deposit is lost and also should the vendor fail to complete the deposit is refunded to the purchaser. In Spain, oral contracts have the same validity as written contracts.
3. A deposit of 10%; of the purchase price is usually requested by the estate agent and this is held in a bonded clients account.
4. The legalities are dealt with by a notary; this is a public official who is assigned to deal with both the requirements of the purchaser and the vendor. The notary checks at the time of the completion that the property is not encumbered with debt, because in Spain debts are attached to property and in extreme cases it could be that outstanding mortgages are passed on to the purchaser.
5. It is necessary to have an independent translator at the notary; if your Spanish is limited, to ensure that you understand completely, all that is being explained.
6. The balance of the purchase price has to be paid on the day of signing at the notary; the purchaser and the vendor sign the Escritura de Compraventa. This sum should be paid in the form of a bank transfer from your Spanish bank account to the seller's bank account or a certified cheque drawn on a Spanish bank, you cannot use an International draft drawn on a UK bank, and cash is not an option.
7. Taxes; these need to be paid within one month of signing at the notary, but in general the notary will ask for your bank details and the appropriate taxes (once they have been calculated) will be debited by the notary.
After what can be a quite straightforward process, you will be the proud owner of a Spanish home.
Step 4 - OWNING
Once you've signed "on the dotted line", had your celebratory glass of champagne and met your new neighbours, the practical realities of ownership and settling into your new community soon begin to demand your focus.
But, if you are one of our clients, you need worry no further. Our Property Office personnel not only conduct client viewing appointments, negotiate the sale, supervise the sales process and generally guide our clients to successful ownership, they will also assist our clients to establish themselves in Spain and integrate quickly and effectively.
They will guide you through the bureaucratic maze of red tape that awaits the unwary and sort out those essentials that clients normally want assistance with, such as:-
- translations
- opening bank accounts
- arranging telephone installation
- arranging insurance
- electricity connection
- water connection
- septic tank installation
- finding builders and artisans etc.
As they live and work in Spain it means that they are already familiar with the majority of the requirements you may have and the relevant contacts, people and systems necessary to smoothly get you set up with the various Spanish authorities and integrated into the Spanish way of life.
For a comprehensive selection of all types properties throughout the whole of Spain, plus detailed reports covering locality, attractions, lifestyles, Spanish recipes, Spanish schools, travel, language, golf courses, wine, services, information and property for sale, click the following link:

Investing in Mexican Real Estate

If you are interested in buying property in Mexico, then there are certain steps and procedures that you must do in order to successfully complete the transactions with the shortest amount of time possible, and with the lest amount of headache. Before starting, it is always a good idea to advise your legal counsel of your intentions, so that they can help you further speed up the process and spot any legal difficulties at the onset. A lawyer or firm that you yourself choose will work for your interests, rather than just selecting a company to serve as a go-between for you and the property vendor.
First, make sure that the seller of the property that you are interested in actually has the deed or the title to the land. Some properties in Mexico called ejidos are communal properties that are owned by a community, and can be difficult to process. Ensure that a deed is available before buying anything outright. Sellers should have the escritura publica, and the certificado de libertad de gravamen, which are the public deeds that state that they are indeed the owner of the land in question.
Once this has been provided, you can now offer to buy the property through a written contract known as the Contrato de Compraventa Definitiva. Usually, a 5-10% deposit payment is given seller accepts the contract. This is where the notary public, or the notario publico, comes in. This is a government-appointed official who validates and recognizes all legal transactions within the country. The notary public can also check and affirm the seller's deed, or determine if the property is ejido land, so it is important that all biding legal contracts made should be done in the presence of the notary public, to avoid as much fraud as possible. It is the seller who chooses which notary public to oversee the transaction.
This done, you should also provide all the needed legal information to the notary public, such as your birth certificate, marriage certificates, proof of dates of birth, your visa, and other means for legal identification. In turn, the seller should also provide the notary public with the deed of the land, and relevant property and utility receipts. The capital gains tax can be paid either by the seller or the purchaser, depending on their agreement.
When the contract is signed by both parties, all fees should now be paid over to the seller. It is important to know the final cost, including the breakdown of all the fees incurred, including the notary public's fees.
Finally, the notary public then registers the new transaction into the Public Registry of Properties, which can take around two weeks. It is advisable to have this registered as soon as possible, because the contract only becomes legal after it has been officially registered.
When buying property, it is always common sense to read up on and familiarize yourself with the laws to prevent as much trouble in acquiring the land you want as possible. Buying property in Mexico is not all that hard to do, but it is always good to be careful and know what you're getting yourself into first.

Buying Property in South Italy

I bought an apartment in Scalea, Calabria, South Italy three years ago and I must say that I am glad I did. Calabria is a very popular tourist destination for Italians from all over Italy, but is relatively unknown to foreigners, Calabria has not received the publicity and investment of the North but it does offer a real opportunity to find the holiday home of your dreams.
A word of warning.
Italy is known for it's red tape but the process of buying property is normally straightforward, the most important thing is the documents for the property. It can be difficult to purchase a property without the proper documentation. Properties are often handed down from generation to generation particularly in the South because as the people of South Italy tend not to move to different areas, the consequence of this is paperwork is not always available and it can be extremely hard to trace the original documents which could date back for generations. My advice is if the documents are not readily available it may be worth considering buying a different property because it could a long time before the documents are found it at all.
That said the buying process usually entails the following.
1. The price is agreed by the buyer and seller
2. There is a document called a compromesso which is the official agreement between the buyer and seller which must be signed by both parties
3. The properties details, including the catastal. The catastal is the rateable value of the property in question, this is what the tax and some of the notary fees are based on. It also states the conclusion date of the deal.
4. The buyer's (all parties who name's will be on the deed) need to obtain a "codice fiscale" personal tax code number. This applies to both parties whether they are Italian of not, no deal can be completed without these details. Registration for foreign buyers is free, you will need your passport when registering for your tax code.
5. You can also open an Italian bank account to transfer funds again you will need your passport for proof of I.D.
6. A date is then set to conclude the deal at the Notary office (a local government official), all funds must be available on this date before contracts are exchanged. The Notary does a check on the property to ensure there are no outstanding debts.
7. The details of the sale will be read out by the Notary in Italian - most agents will provide a translation service (extra fees usually apply).
8. The funds are transferred, then the keys are exchanged
9. The deed will be registered by the Notary and dispatched to the land registry office.
The deed will be registered in the new owners name. A copy is produced, stamped and returned to the Notary's office. This can take up to 6 weeks, you will then have your own copy and the original document is kept at the Notary's office.
Nowadays due to the current economic climate it is much harder to attain mortgages such as in the UK, but in Italy the restrictions are not so severe, and a mortgage can be obtained more easily.
In summary; once you have agreed the price, obtained a tax code, you have had the property checked out by the Notary and all the documents are in place, the monies are transferred and registered - the property is yours!
It is always advisable to seek legal advice before purchasing any property.