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My House Had A Hidden Lease Contract In Force

" You can read in the title deeds of my house the words "free of charges and taxes" and "there are not leaseholders or occupants". The reality was quite different and there existed a lease contract between the previous owner and a third party.

I had my rights as the owner but the tenant, whose tenancy existed prior to my ownership, had the right of occupancy even though I knew nothing of his existence at the time of purchase.

After many sleepless nights, I called the title insurance people and fortunately they were able to reach an economical out-of-court settlement with the tenant so that, in the end, I was able to access and enjoy my property."

G. Z. - Madrid


What This Means To You?

Imagine handing over the funds for your new property, signing at the notary and receiving assurances from your lawyer that your new asset has been thoroughly checked and is available for immediate occupancy.

Imagine then discovering that despite the fact you are the new owner, somebody else has a right to remain in the property for the foreseeable future and that your right to access is either limited or impossible.

This case shows you how other legal processes can infringe your right to access your property.

Without a doubt, most conveyancing lawyers will not check for the existence of valid leases or rental agreements. There is no offical method of checking or finding them and your lawyer is likely to argue that it is beyond his remit.

However, hidden leases give greater rights to tenants as it is likely that their agreement was signed prior to your purchase. Their rights, therefore, remain despite the change in ownership.

Many people in Spain choose to rent their properties for short and long periods.

How could you be sure, therefore, that there was not a valid lease or rental agreement on your property?

 

 
G. Z. - Madrid

THIS IS ANOTHER TRUE STORY

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If This Situation Happened To You?

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