Mark F. R. Wilkins

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Avoid making this basic mistake when buying a property in the Marbella region!

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For many years I was employed as an “in-house lawyer”. I worked for music publishing and record companies. However, my message to you is identical. My “client” was never the songwriter or recording artists, with whom my employer was seeking to enter into an agreement. My client was very definitely the Company I was employed by. 

In my view, anything else would have been a blatant Conflict of Interests. I was only employed to look after my Client’s very best interests, and that was perfectly clear.

In recent years, partly because of the perceived cost of engaging a wholly independent and trusted bi-lingual Spanish Abogado (a Qualified Lawyer), a phenomenon has emerged whereby various agencies have employed lawyers (whether as employees or self-employed lawyers attached to the agency by contract) to act in property transactions. While this may be an excellent idea to co-ordinate the agency’s due diligence investigations into a development that they are proposing to sell, for example, it is not a sound strategy for the proper professional representation of a buying client. 

They may believe that they are saving their buyers the time, trouble and expense of retaining their own Abogado. They are, in fact, achieving the exact opposite. The agencies commercial and fiduciary responsibilities are towards their client – their paymaster – the Seller. In my view, allowing their employed lawyers to advise a buyer unravels a whole host of problems. 

A buyer may well, at a later stage, marshall a convincing argument that the advice received from an “in house lawyer” was not at all impartial and was tainted by a clear conflict, thus exposing the agency to a potential claim for loss. I can see a judge favoring this argument in appropriate circumstances. As a result, best practice should suggest that the agency needs to reconsider the probity of permitting their employees to advise their buyers.

Trusting and relying on the advice of an estate agent’s “in-house lawyer” in a Costa del Sol property purchase can seem convenient — but it’s almost never in the buyer’s best interest. Here’s why, plus what to do instead.

Why you should be cautious with an in-house lawyer?

Conflict of Interests is built in

The estate agent’s job is to sell the property. Your lawyer’s job is to protect you and work solely in your best interests, even if that means slowing down the sale, renegotiating, or advising you how to proceed.

An in-house lawyer is employed and paid by, or depends on referrals from the estate agency. That makes true independence at best, difficult, at worst, practically  impossible.

Reduced ability to say “No”

A genuinely independent lawyer can:

• Demand missing documents

• Push back on unrealistic deadlines

• Insist that issues are fixed before you sign

• Advise you to walk away if the risks are too high

An in-house lawyer may feel pressure not to jeopardise the deal.

Risk of corner-cutting

Property compliance in Andalucía can be complex (licences, “fuera de ordenación,” extensions, Catastro/Registro issues, rentals, tourist licences). A lawyer aligned with the agent may “smooth over” problems instead of confronting them.

You might not get full representation

Some “in-house lawyers” are not actually acting for you in the strict legal sense — sometimes they are gestorsasesores, or loosely attached legal partners.

This can lead to: No proper conflicts check (can they work for you?); No liability insurance standing behind the advice and No fiduciary duty to you as the buyer

Lack of privacy

With an agent-tied lawyer, the estate agent often finds out:

• Your budget

• How much you can stretch

• Your personal situation

• Your timeline

This information can weaken your negotiating position.

When a buyer truly benefits from an independent lawyer

A truly independent lawyer in the Costa del Sol works only for the buyer, solely in the buyer’s best interests and typically delivers:

Clear, neutral legal due diligence

Including licences, planning compliance, community issues, debts, illegal works, and tourist rental eligibility.

Protection of your bargaining position

No sharing of your financial details with the selling side.

Objective risk assessment

You get a realistic view of the property — not a sales pitch disguised as legal reassurance.

Negotiation leverage

An independent lawyer can spot leverage points (“This extension is unregistered”, “License of First Occupation is missing”, “tourist use not allowed”) to improve the price or terms.

Confidence in the process

You know someone qualified — and insured — is representing your interests alone.

Bottom line

On the Costa del Sol, never rely solely on the estate agent’s in-house lawyer.

It’s one of the most important financial decisions you’ll ever make and independent representation is absolutely worth it. Please don’t do it! 

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Should you be interested in discussing the process involved in buying a property on the Costa del Sol, we would be delighted to assist you. We have an experience-qualified and best of breed Associates Network comprising professionals focused on the western Costa del Sol (Malaga to Tarifa) property market. Their services include property search, mortgages, legal and tax services, visas, surveying, insurance and currency brokerage. 

We have done the leg work, testing the quality of our Associates Network and now feel confident in recommending their services to you.

Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law. 

Nothing contained in this article should be seen or taken as legal, tax or financial advice and cannot be relied upon as such. Neither the writer nor the publisher accepts any responsibility for liabilities arising as a result of reliance upon the information given. 

All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.

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My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com

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