14.01.2025 
How to Avoid Scams in Real Estate Transactions in Spain
Buying and renting property in Spain is a responsible and often exciting step, especially for foreigners. The high demand for apartments, houses, and villas in this country creates fertile ground for the emergence of fraudulent schemes. How not to fall for the bait of "dishonest realtors," "fake" landlords, and sellers of "phantom" properties? In this article, we will look at the most common scams that many buyers and renters have already encountered and tell you how to protect yourself from potential risks.
Most Common Fraudulent Schemes
"Fake" Agencies and Phantom Listings
Unscrupulous individuals may pose as official realtors or work under the guise of new real estate agencies that actually exist only in virtual space. They post attractive listings with unrealistically low prices on popular portals, such as Idealista or Fotocasa, attaching beautiful photos of the dream home. Typically, the scheme looks like this:
- The buyer/renter is convinced of the exclusivity of the property and asked for an advance payment or a deposit supposedly for booking.
- They promise to process the transaction through well-known online services (for example, Booking or Airbnb (Air Bed and Breakfast)) for "security," but in reality, they provide fake links.
- After transferring the money, communication with the "realtor" or "landlord" ceases.
To avoid becoming a victim of such a scam, it is important to pay attention to the agency's reputation: check how long it has been operating, whether it has a real office, and what reviews customers leave. Never transfer money until you have personally seen the property and verified its existence. For added security, you can request a Nota Simple, which confirms the ownership right.
Advance Payment and "Mandatory Services"
Another popular trick is to charge so-called "mandatory" fees even before signing a purchase or rental agreement. These may be "search fees" or "preliminary services" for viewing properties. Often, scammers ask for a small amount, at first glance, so that you do not suspect anything. The final transaction is not guaranteed.
Tip: never make large prepayments without a signed contract. You should be especially wary if the "agent" is rushing you and saying that tomorrow will be too late, as "the property is incredibly in demand." Consider using property valuation services to check the real value of the property.
Too Low Price
If the rental or sale of housing is offered at a price two or three times lower than the average market price, this is almost always a "red flag" for fraud. Scammers thus try to get the attention of potential customers. As soon as contact is established, conversations begin about the need to urgently transfer money, and at this stage, people often lose vigilance.
To avoid unpleasant surprises, before signing the contract, check the property for compliance with all legal norms and possible hidden problems, including encumbrances. A verification of encumbrances and legal cases is suitable for this.
Fraud with the Title Deed
In Spain, it is especially important to check the ownership title to a property. Some scammers forge documents or use stolen data from owners, trying to sell someone else's property. Here, only a thorough legal check of all papers will help. The ideal option is to enlist the support of an independent lawyer and request a comprehensive title check at the local registry.
Rent: What are the Risks
Fake Listings and Non-Existent Properties
Renting housing in Spain is a particularly popular area, where scammers often post listings for apartments that do not exist. On platforms like Idealista, Fotocasa, or Milanuncios, supposedly "super-profitable options" are offered: city center, low price, a complete set of furniture, and even "all expenses included." The main techniques of deceivers:
- Communication only by email: the pseudo-owner claims that he cannot show the property in person, as he is abroad.
- Link to well-known services for a "safe" transaction: scammers send a fake website, similar in appearance to popular platforms, where they ask to pay for the booking.
- Urgent transfer through dubious payment systems: they demand to deposit money without real guarantees, after which they disappear.
To avoid losing funds, avoid transactions that take place only online, without personal meetings and inspections. In Spain, the landlord is obliged to give the opportunity to see the apartment before signing the contract. If a person refuses or looks for excuses not to show the housing, it is better to stop communicating. For added security, it is recommended to conduct a property check before renting.
Pseudo-Intermediaries
Often, deception occurs through "assistants" who claim to be official representatives of the property owner. Supposedly, "the owner is abroad," so the keys remained with them. As a result of these negotiations, the client is asked to pay part of the amount to the account of an unknown person. Once the transfer is made, the scammer no longer gets in touch. The only way to avoid such situations is to work with trusted agencies and observe the rule of personal inspection. A reliable agency usually provides rental management services, which helps to avoid risks.
How to Check Reliability and Not Become a Victim
Consultation with a Lawyer
When buying real estate, do not skimp on time and money for consultation with an independent lawyer. The lawyer will analyze all documents, including the extract from the registry, the contract, the technical characteristics of the property, and make sure there are no legal restrictions. For example, a lawyer will help with checking for encumbrances to avoid unpleasant surprises.
Market Analysis and Price Comparison
Before the transaction, it is important to study the real prices for similar properties in the same area. The cost of housing in Spain largely depends on the location, infrastructure, and quality of construction. Too low a price should be a red flag; "hot deals" often turn out to be fiction.
Working with Specialized Agencies
One of the most effective ways to avoid fraud is to find a large real estate agency that has its own office and rental/sales managers. The more stable the company is in the market, the less likely it is to risk its reputation. Pay attention to the following signs of a reliable agency:
- Official website and office where clients are received.
- Available contact information and several years of experience.
- Clear terms of cooperation, written in the contract.
- Availability of MLS (Multiple Listing Service) - a database of properties that allows you to check real offers throughout the region.
Property Check Before Transaction
Immediately before concluding a purchase agreement, we recommend that you inspect the property again. Make sure that all the furniture and appliances specified in the contract are actually present, and that no garbage cans or noisy construction have appeared around you that were hidden from you at the first showing. A property check before purchase can also be helpful, which will provide confidence in the quality and safety of the transaction.
Additional Tips and Lifehacks
- Be careful with prepayment: reserve funds only after signing a preliminary contract and preferably through a bank transfer or card payment, keeping receipts.
- Change the locks: when buying a home, immediately change the door locks. The previous owner or realtor may have a set of keys.
- Do not rely on "free" services: a meeting at the airport or temporary accommodation from unknown companies often means hidden payments in the future.
- Secure the terms in the contract: specify in writing all the details (garage space, furniture, additional expenses) and take photos or video recordings of the apartment.
- Use verified payment services: avoid transfers via Western Union (Western Union) or MoneyGram (MoneyGram), where it is impossible to track the recipient.
What to Do If You Have Already Encountered Scammers
If you suspect something is wrong, the main thing is to remain calm and in no case transfer money. If you have evidence of fraud (correspondence, receipts), you should:
- Report to the administration of the portal where the ad was posted (Idealista, Fotocasa, etc.).
- Contact the police and file a fraud report.
- Try to find out more about the person or company: ask for official documents, check their authenticity.
In some cases, scammers are in no hurry to disappear, and if you stop their actions in time, there is a chance to get the money back. But it is best not to bring it to a critical point and follow all safety recommendations in advance.
Conclusion
The real estate market in Spain holds many pitfalls for foreigners, who are often not familiar with local realities. Scammers take advantage of this, offering too-good-to-be-true properties to lure a prepayment or force you to buy a property with problems in the documents. However, with a competent approach, all these risks are minimized: carefully check each offer, consult with an independent lawyer, study the reputation of the agency, personally inspect the properties, and do not let yourself be rushed. May your purchase or rental be as safe and enjoyable as possible.
