Buying an apartment with occupants: pros and cons.

Although occupation is one of the issues and concerns in the real estate sector, some people find certain benefits in it. Contrary to what one might think, there are many people who choose to buy property with occupants, and the number is growing each time. The reason people resort to this housing option lies in the fact that it conceals several advantages that can be very appealing. In this article, we will explain the pros and cons of buying a house with occupants.

What is considered occupied housing?

Occupation or seizure is the act of taking possession of someone else's real estate without the owner's consent. In Spain, occupation is considered a crime, punishable by imprisonment from six months to two years and fines ranging from three to six months. Additionally, the occupier may be sentenced to eviction from the property and to compensate the owner for damages.

Who owns the houses with the occupiers that are up for sale?

Often, the owners of apartments themselves decide to sell them at a price below market value to avoid the lengthy, difficult, and costly process of evicting occupants. In other cases, the apartments belong to the real estate portfolios of some banks that have become owners due to mortgage defaults.

Pros and cons of buying a house with squatters.

Advantages of buying occupied housing:

• Price: Apartments from banks and private individuals selling with occupants are sold at prices below market value, sometimes 50-60% less. Therefore, those who are willing to face the drawbacks of this scheme can find real treasures.
• Investment opportunity: Considering the price discount, if you manage to reclaim the property and it is in good condition, or invest in its renovation, you can achieve an attractive return when selling or renting it out.
• Negotiations: Sometimes it is possible to reach an agreement with the occupiers by offering them compensation for voluntarily vacating the house.

Disadvantages of buying occupied housing:

• The inability to enjoy the home: Usually, the new owner will have to go through the eviction process to take possession of the property.
• Destruction and damage: Occupiers are often violent and cause destruction and damage in the apartment, so it will need to be repaired.
• Difficulties with financing: Financial institutions may be reluctant to provide loans or mortgages for the purchase of occupied residential properties due to the associated risks.

How to acquire property with occupiers?

Before making a purchase, it is essential to thoroughly examine the property, check for any encumbrances, and understand the circumstances of its occupation.

What kind of houses do the occupiers prefer?

The occupiers prefer vacant homes and second houses. They often choose properties from banks or predators for their residence. Usually, they favor sparsely populated urban areas or suburbs. However, tenant debtors, those who enter a house under a lease agreement and then stop paying rent to live for free in the apartment, have no preferences; all options are suitable for them.

How to evict an occupier from a property

If you buy a house with occupants, you will have to take on the challenge of starting legal proceedings to regain your property rights. The Civil Procedure Law (LEC) stipulates that you need to file an eviction lawsuit, and for this, you will need the assistance of a specialized lawyer to properly navigate the process.