Banker's drafts not given to non-residents

[funhunter]

Hi, A Belgian friend of mine who is a non-resident here in Spain is currently trying to buy a house. Now on the point of purchase she has been told by her bank here in Tenerife that they do not issue banker's drafts to non-residents. She was told that this was a relatively new law. Has anyone else heard of this and what is secure way to transfer funds at the time of a sale? Her bank suggested a normal transfer but obviously that is not logical as the handing over of funds should be done at the notary's when the deeds are signed. Any advice on this matter would be most welcome. Thanks

[CIM]

Haven´t heard of this law and have done loads of sales recently with bankers drafts for non-residents.
I would try another bank. I have also completed a few sales with transfers - specifically when both buyers had funds denominated in Sterling. Used a Sterling account here and funds were transferred to sellers UK account after notary. The transfers were set up prior to arriving at notary and the orders were shown to the seller. This was done through a lawyers account and written into the deed that the lawyer was holding X amount and would transfer X amount after notary etc.... So it can be done but some sellers may object to it.

[funhunter]

Thanks very much indeed for your quick reply with so much useful information. Interesting that you have dealt in similar sales without the bank mentioning this new ruling. I'll pass all this information on to her and let's see how she can get through these obstacles.

Once again thanks a lot for your help

Much appreciated :wave:

[CIM]

Does she have an agent or a lawyer / gestor dealing with the sale or is she doing it herself?

[funhunter]

She's was hoping to do it herself but in view of this problem she may well need a lawyer.

[boredinscotland]

I was charged 500 Euro from Solbank for 2 bankers drafts when I bought, If I knew that at time would have done a transfer

[atlantico]

I've bought 3 properties and each time a bank representative accompanied me to Notary with all the relevant cheques pre-filled out - and a hefty charge, of course, about €500

[funhunter]

Yes, these charges are extortionate, another banking scam. They know that by the time you ask for the draft you're desperate not to have any hitches in the purchasing process so they ask the price they want. Totally rediculous as there's no real work or risk to the bank.

[delderek]

Haven´t heard of this law and have done loads of sales recently with bankers drafts for non-residents.
I would try another bank. I have also completed a few sales with transfers - specifically when both buyers had funds denominated in Sterling. Used a Sterling account here and funds were transferred to sellers UK account after notary. The transfers were set up prior to arriving at notary and the orders were shown to the seller. This was done through a lawyers account and written into the deed that the lawyer was holding X amount and would transfer X amount after notary etc.... So it can be done but some sellers may object to it.

Or if a Sterling transaction, simply a UK sterling bankers draft handed over at the notary.

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Yes, these charges are extortionate, another banking scam. They know that by the time you ask for the draft you're desperate not to have any hitches in the purchasing process so they ask the price they want. Totally rediculous as there's no real work or risk to the bank.

They also don't tell you you can have a personal cheque Endorsed by the bank (as good as a draft) with no fees at all.

[funhunter]

Thanks Delderek, A personal cheque endorsed by the bank free of charge sounds like a wonderful solution, there must be a catch somewhere....??

[CIM]

You can get bankers drafts for free - I do this for my clients now after having ongoing problems with various banks.
Secure bankers draft at no cost.

[doreen]

You can get bankers drafts for free - I do this for my clients now after having ongoing problems with various banks.
Secure bankers draft at no cost.


Is anything really for free when it comes to banks ... maybe the mortgage interest rate is a tad higher ? :)

[CIM]

Nothing to do with mortgages. I have negotiated this for all of our clients. Saves up to 500€ a time and also have remote account opening facilities which many banks no longer provide. Just smooths things along being able to save money and speed up the transfers etc (which are fees free now :) )

[funhunter]

My friend came back to me yesterday saying that she changed banks to La Caixa who told her that there was no problem to make out a draft. The bank that told her that it wasn't permitted in Spain to non-residents was Triodos Bank. Can you tell me CIM which bank does these transactions free? We're talking big savings here.

Once again many thanks for such useful data there are so many scams out there preying on the innocent non-resident investor.

[CIM]

Its a deal we have negotiated with a specific manager - not something that´s generally available I´m afraid.

[funhunter]

OK, I shall give her your phone number as she is interested in consulting you.