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Archive for the ‘Spain’ Category

Getting the Apostille - Always use a NOTARY

Tuesday, August 3rd, 2010

ALWAYS USE A NOTARY FOR DOCUMENTS TO BE USED ABROAD, IF YOU ARE ASKED FOR THE “APOSTILLE”.

I return to the topic of the Foreign and Commonwealth Office Apostille – it seems to me that this is a part of the Notarial process which is misunderstood more than any other.

Typically a client is told that the document to be signed in England must be returned to the foreign jurisdiction “with the Apostille”. Usually this is the first time that the word has ever been heard by my client – who does not know what its meaning.

Also, it is by no means always the case that the foreign lawyer advising has a full understanding of what is required. In England there is a clear distinction between the lawyers who have jurisdiction here (the Solicitors) and those whose jurisdiction extends overseas (Notaries). In most countries in the world, there is no such distinction. Particularly in Europe, the lawyers who deal with land transactions are all Notaries. They naturally deal, almost all of the time, with transactions and clients who live in their own country and therefore generally speaking most foreign Notaries have little or no experience of dealing with overseas issues. This contrasts entirely with the experience of UK Notaries, whose daily work is almost solely concerned with overseas matters. This means that more often than a foreign Notary is likely to want to admit, they have little or no direct experience of acting for clients who need to execute documents in England.

What they do know, is that they need an Apostille and so this is the instruction that a person in England is given.

A problem that arises is that the client in England who has been told that an Apostille is required once he has signed his paperwork in the presence of a Notary, has never heard the word “Apostille” and has probably never heard the word “Notary” used in England. S/He contacts the foreign Notary to explain that the lawyers in UK are called “Solicitors” and the foreign Notary might say that all that is required is the Apostille anyway. So since neither the client nor the Foreign Notary are aware that Solicitors in England do not have the jurisdiction of Notaries, off the UK resident goes to have the document witnessed and certified by a Solicitor.

At this stage a well informed Solicitor would explain to the client that in fact a Notary is required, but often this does not happen since the Solicitor has no experience of being asked to assist in relation to a foreign transaction and simply does not realise that s/he does not have the necessary authority.

You might think that this catalogue of errors would be brought to a halt when the paperwork is submitted to the Foreign and Commonwealth (FCO) office for the Apostille to be affixed. However, this is not the function of the FCO – it simply adds the Apostille if satisfied that the the relevant signatory is known to it. The FCO will confirm, by affixing an Apostille, that the signatory is a Notary, or is a Solicitor, or is a Judge, or a Doctor, or a University Vice-Chancellor, etc etc, as the case may be. It is not the job of the FCO to read the paperwork and advise the client that because a Dentist, or a Solicitor, has acted as witness therefore the foreign jurisdiction is not being given the authentication it requires. Indeed it is not the job of the Foreign Office to read the paperwork at all.

It therefore happens very often that, say, a Power of Attorney for use in France is executed in England before a Solicitor who is not a Notary and the Apostille is added and the document is returned to France for use. Usually its failure to comply with the internationally agreed conventions is noticed at some late stage causing expensive delay. Sometimes the irregularity is not noticed at all and the transaction is “completed” - the money is paid and the new “owner” moves in. In such a case there may be no end to the legal actions and cost and distress which might arise when the mistake is eventually noted.

Because the paperwork has not been completed correctly may mean in the worst case that title to the property has not passed to the Buyer, As one example, consider the case of a Seller going bankrupt after completing the sale and spending the money. The creditor having inspected the sale paperwork discovers that it was not notarised as required by the law, and will raise claims against the Buyer,(that they are not in fact the owner because the paper title is defective and so they should turn the property over to the creditors), against the Foreign Notary and against the English Solicitor.

The fact of the matter is, that if you are in the position of entering into any documentation for use abroad and which you need to sign in England, then you must protect yourself by having your signatures Notarised. Only a Notary Public can do this in England.

Even though your foreign lawyer may well tell you that the only important thing is the Apostille and that you can obtain this by any means, including having your papers dealt with by a non-Notary Solicitor in England, this is simply not the case.

In these circumstances unless you use a Notary, who is the proper legal Officer for the job (and who carries the necessary insurance to protect you) you place your transaction and your wealth at serious risk

It’s sad – but Spanish realism now can avoid a huge loss later

Tuesday, February 16th, 2010

It’s sad – but Spanish realism now can avoid a huge loss later

I am all too often instructed these days by British Nationals whose investment in a holiday home in Spain has turned sour.

The typical scenarios usually have all or a combination of these factors

• The end of a fixed mortgage term - when a replacement loan is either unavailable or far more expensive

• The loss of employment, which means that a foreign second home is now a luxury that cannot be afforded

• The onset of ill health means that regular air travel is now impossible

• The fall in value of the Spanish property (and fear that the value may soon fall further) means that the second home is now a source of huge worry and no longer a pleasure

There have of course been recessions and credit crunches before and history does seem to show that a property owner who can afford to hold his nerve and wait, will eventually find values rising again. But this is of no comfort to an owner who cannot afford to pay increasing mortgage payments. Simply sitting it out should be no more an option than sticking one’s head in the sand but sitting it out and worrying (and doing nothing) is exactly the worst thing to do and also it’s what most people do.

If the above describes the problem you are facing – what action should you take? The obvious choice is to sell the place. This is easier said than done in the present market – the risk is that high fees might be incurred on estate agency and marketing costs, for no result.

In Spain, there may be another option – one which does not exist in UK to the same extent. In UK, mortgage borrowers in distress can be very unhappy to learn that they cannot expect simply to return the keys to the Bank and then be able to walk away from the debt. In Spain however, this might be possible and increasingly often I am notarising Spanish Deeds to do exactly that.

The detailed information below is provided by a lawyer practicing in Spain - Mr Raymundo Larrian Nesbitt. You can find out more about him and read his own article if you follow the link I have placed in the “Links” section of my main website.

There is provision for this procedure enshrined in the Spanish Civil Code

Article 1175 of the Spanish Civil Code says

Payment by assignment of Property

The debtor may assign his property to creditors in payment of his debts. This assignment liberates the former from liability to the net amount of the property assigned unless there are stipulations to the contrary. Agreements in respect to the effects of an assignment, entered into between the debtor and his creditors shall be made in accordance with …………………..the Code of Civil Procedure

The Spanish phrase for this procedure is “Dación en Pago”.

The difference from English law is that once the dacion en pago has taken place then the debt is wiped. The Bank now owns the property. If the Bank cannot sell it or it makes a huge loss, there is no comeback to the original mortgage borrower. Contrast that with UK where, even after a Bank may have accepted the keys and taken over the property, still the mortgage debt is continuing to rise until the property is eventually sold, perhaps many months or even years later. In Spain the opposite is the case – the slate is wiped completely clean and the former owner/borrower can consign the whole affair to history. He can “move on” as our Government likes to say!

Although this is a procedure where it is not absolutely required that you instruct a lawyer to act for you, my advice is that you certainly should NOT deal with a dacion en pago by merely sorting it out with your Bank direct.

In this procedure as with all financial matters, it is well worth having professional advice. There are rules to be adhered to, and there is the possibility of negotiation. Who will pay for the valuation fees, the Registry costs. Perhaps if the property is well out of negative equity you can negotiate that money is payable back to you at the time of an eventual sale. You need proper advice- especially at what can be a very stressful and indeed emotional time.

However you cannot leave it until matters have gone too far. First – the Property must not be in negative equity prior to the negotiations beginning and Second – the Bank must not have already started legal proceedings against you for repossession of the property.

These two rules taken together underline the importance of acting in time. If you can see now that you are heading for trouble because your Spanish mortgage is simply too expensive, do take legal advice NOW. Sad as it is to cut your losses and to acknowledge to yourself that the Spanish dream is over, early recognition of the reality of the situation can result in being able to hand back the house, hand back the debt, hand back the worry and the sleepless nights and walk away free. The alternative might be to cling on to an increasingly worthless property which you never visit and which is eventually repossessed anyway: leaving you still responsible for an ever increasing debt you cannot afford, a debt which the foreign Bank can in due course attach to your assets in UK or anywhere in the world.

For Spanish property owners in financial difficulty the dacion en pago might just turn out to be a lifeline. And lifelines should be seized whilst there is still time.

What Exactly Does A Notary Do Anyway?

Thursday, June 18th, 2009

 

What Exactly Does A Notary Do Anyway?

 

I have summarised the nature of my work in one sentence on my website – “The function of a Notary Public is to substantiate evidence of human activities”

Fine – but what does that mean in the real world and what exactly do I do all day? For this blog I thought it might provide a helpful answer to that question if I simply prepare a list of the scope and nature of the work I have done in the last few weeks. In every case, the person attending my office has been required to produce an original passport and at least one other proof of residence address (Bank statement, Council tax bill or utility bill). In addition where the client is a Limited Company, PLC or LLP I have commissioned a search of Companies House, to ascertain that the Company exists and who are its directors and to see its Memorandum and Articles of Association. Where appropriate I have obtained Foreign Office Apostille or Consular legalisation (see my main site for more explanation of that)

 

So, I have recently:-

·         Witnessed a Deed of Conveyance, for a house purchase in Jamaica. Although an Apostille can be obtained for Jamaican documents, none is usually required

·         Witnessed the execution of a Deed of Power of Attorney by a Company Director in relation to the transfer of shares in a German Company.  Also, obtained Apostille

·         Provided certified evidence of the existence of a UK Company for the purpose of evidence required by a German Court. Apostille

·         Witnessed the execution of a personal Power of Attorney in favour of a foreign lawyer for a house purchase in Malta. Apostille

·         Witnessed the execution of a personal Power of Attorney in favour of his brother so that my client could deal with his affairs in Hong Kong. Again, Apostille required

·         Act as supervising Notary to the execution by my clients of their Wills dealing only with their Estates in Spain. Apostille

·         Certified for use in the Canary Islands that a UK Grant of Probate is genuine, so that the Spanish Estate of the Deceased could be administered. Apostille required

·         Twice in the past week, I have acted for Doctors seeking to obtain work permits and visas for Australia, and prepared certified copies of their professional qualifications and degrees. Australia does not (yet) require any Apostille.

·         For a client moving to India, obtained certification from his children’s school as to their academic progress so that they can find appropriate school placing in India. And see my earlier blog about the ongoing saga as to whether my certificates for India should have Apostilles (yes!) or Indian High Commission Certification (no!)

·         Took evidence and prepared Affidavits from a couple wishing to marry in Sri Lanka stating that each is single and adult and free to marry. For Sri Lanka the usual requirement is for an Apostille plus Consular Authentication but in this case the travel agents concerned said no legalisation was needed. I advised my clients to check this very carefully

·         Witnessed a Power of Attorney appointing a lawyer in India for use in Indian Court proceedings where there is a land ownership dispute. The four children of an Indian citizen now all live in England and their father has died they. They now require to protect their land rights. Apostille

·         Witness execution of a mortgage Deed for use in Florida. In Florida, a Deed which is executed in England is required to have been signed not only in the presence of a Notary Public but also in the presence of two additional adult witnesses. Although no Apostille is usually required for US Deeds, in fact the United States is a party to the Convention of the Hague. For that reason occasionally Floridian lawyers will request the Apostille. Often this is required for New York and California also.

·         Witnessed the execution of house sale papers for Barbados by the Executor of the deceased house owner there. No Apostille is required for Barbados when the deeds are executed in UK

·         Witnessed the signature of a letter of authority by a Company sales executive to confirm for the authorities in Saudi Arabia that a person there is its genuine agent. For Saudi Arabia, legalisation with Foreign Office then Saudi Consulate via the Arab British Chamber of Commerce

·         Countersigned for USA a medical student’s application for permission to sit medical examinations there. No further authentication was required.

·         For Slovakia, obtained from the UK Registry of Births Deaths and Marriages a Birth Certificate for a child born here of Slovakian parents. Obtain the Apostille upon it, so that the certificate would be accepted in Slovakia and the child could obtain a Slovakian passport.

·         For Saudi Arabia and also United Arab Emirates, I witnessed a Power of Attorney Deed and a copy of a Board Meeting resolution produced to me by a Company director of a UK Company and dealt with all legalisation (Apostille, UAE Consulate, Saudi Consulate via Arab British Chamber) in order to establish the decisions of the Company as to its representation in those jurisdictions.

·         Confirmed for the Spanish Tax authorities the status of a major UK PLC company in relation to its VAT registration and obtain Apostille

There is I think no limit to the scope and nature of the actual jobs I may be called upon to do but I hope the list above gives a flavour of the very interesting and varied problems – and solutions – that I deal with day to day.

As ever, please do email me if you would like me to respond to any thoughts or queries you have, arising from this blog