I Bought a House with Squatters: Steps to Follow and How to Solve It
Buying a home is one of the most important decisions in life. However, when entering the competitive real estate market, you may encounter unexpected situations—such as buying a house with squatters. “I bought a house with squatters” is, unfortunately, a phrase becoming increasingly common in Spain. These kinds of cases have sparked great interest and, above all, concern, as many people don’t know what to do when faced with this situation.
In this article, we’ll thoroughly examine what to do if you bought a house with squatters, the legal implications of illegal occupation, how to avoid falling into this type of situation, and what options you have to resolve it if you're already involved in such a purchase.
What Are Squatters and How Do They Affect the Real Estate Market?
Squatters are individuals who occupy a property without the owner’s consent. In Spain, illegal occupation is a growing problem that affects both private property owners and public institutions. The situation becomes more complex when properties are sold with squatters inside, as this factor can significantly reduce the value of the property and cause long-term legal complications.
There are mainly two scenarios in which you might find yourself saying: I bought a house with squatters.
• Bank-Owned Properties: Many properties sold by banks after an eviction process may still be occupied by previous tenants. In these cases, the bank may not have fully regained possession of the property before putting it on the market, so it’s possible to end up in the situation of buying a house with squatters that the bank failed to evict beforehand.
• Properties with Illegal Occupation: These are homes illegally occupied by individuals without any type of contract, and the owners have been unable to evict them due to lack of knowledge, resources, or understanding of the legal procedures.
These properties are usually cheaper due to their condition. However, the lower price comes with significant risks, and buying a house with squatters can bring serious problems if not handled properly.
Is It Legal to Sell Me a House with Squatters?
This is one of the most common questions in this situation. If the seller did not inform you about the illegal occupation, it could be considered fraud, and you might be entitled to claim damages. In some cases, you may also have the right to annul the sale, but this will depend on the specific circumstances and current legislation. On the other hand, if the property was not sold with squatters but was later occupied, the situation is more complicated. The seller cannot be held responsible if the occupation occurs after the transaction, and the new owner must deal with the eviction process alone, which can be lengthy and expensive.
What to Do If You Bought a House with Squatters?
If you find yourself in the unfortunate situation of having bought a house with squatters, it’s essential to know how to proceed. There are several paths you can explore to resolve this issue.
Negotiation with Squatters
If you bought a house with squatters, the first option is to try a direct solution and negotiate with them. If they are willing to leave the property, you may reach an eviction agreement. However, this option is not always viable, as some squatters may demand large sums of money or refuse to leave entirely.
Legal Process
If negotiation fails, the next step is to take legal action. For this, you’ll need to hire a lawyer specialized in real estate law, who will guide you through the eviction process. Depending on the case, you may file for an eviction due to unlawful occupation or press charges for trespassing. However, this legal process can take one to two years and be costly.
Hire a Specialized Squatter Removal Company
An increasingly popular option is to hire companies specialized in squatter removal. These companies have the knowledge and experience needed to solve the problem faster and more effectively than traditional legal processes.
Is Buying a House with Squatters Profitable?
Although buying properties with squatters might sound like a bad investment, some buyers see it as a business opportunity. Purchasing an illegally occupied property may allow investors to buy it well below market value. After removing the squatters, they can sell or rent it at a much higher price, generating significant returns.
However, keep in mind that this type of investment carries risks. Evicting the occupants can be a long and costly process, so not all buyers are willing to take on the challenge. Moreover, not all properties sold with squatters can be easily vacated—some squatters actively resist eviction, making the process even more complicated.
Tips to Avoid Buying a House with Squatters
To avoid finding yourself saying “I bought a house with squatters,” it’s essential to take certain precautions when purchasing a property:
• Research the Seller: Make sure the seller is legitimate and established in the real estate market. Ask for references and check for any history of illegal occupation on the property.
• Verify the Legal Status of the Property: Whenever possible, request a simple note from the Land Registry to confirm there are no legal issues like illegal occupation.
• Conduct a Full Inspection: If possible, inspect the property thoroughly before buying. Talk to neighbors and ask if there have been any issues with squatters in the area.
• Legal Advice: Always seek advice from a lawyer specialized in real estate law before making any purchase—especially if you're considering properties that may involve illegal occupation.
Conclusion
Buying a house is one of the most significant investments in life—but also one of the riskiest. If you bought a house with squatters, it’s vital to know how to act and what your options are to resolve the issue. Whether you choose to negotiate with the squatters, go the legal route, or hire a specialized company, the most important thing is to act quickly and get proper advice.
If you’re looking for a safe and trustworthy place to invest in properties in Barcelona, we recommend Hoffmann Real Estate. This real estate agency has a proven track record of helping clients find the perfect property, avoiding complications, and ensuring security in every transaction.
For more information, visit Hoffmann Real Estate and discover the best real estate opportunities in Barcelona.
