Sale of apartment in Calle Catedrático Ángel Casado, 20, Alicante / Alacant

Make your offer! Make your offer! READ CAREFULLY! What exactly constitutes a property occupied by squatters? Before diving into details, it is essential to clarify the definition of an occupied property. According to the dictionary, squatting is an anti-system movement that advocates for the occupation of uninhabited private properties. Squatters, as defined, are individuals who inhabit a vacant home or premises without the owner's consent. Therefore, a squatted home is one where individuals reside without the permission of the owner—whether an individual or a legal entity—meaning they have settled in illegally.

Who owns properties occupied by squatters? Many of these properties have become part of the real estate portfolios of various financial institutions, which have taken possession of them due to owners being unable to meet their mortgage payments. In such cases, these homes are deemed as occupied since many of the former owners have been evicted but never fully vacated the properties. Some property owners choose to sell their occupied homes to bypass the lengthy legal proceedings that accompany such situations. In other instances, it is the property owners who have faced squatting issues that decide to sell, thus avoiding the prolonged process of dealing with these complex circumstances, even though they may have to accept a price below market value.

Weighing the pros and cons of purchasing a property with squatters… As previously mentioned, the primary advantage of buying an occupied property is the price, which is generally significantly lower than market value. Properties owned by banks and those belonging to private owners impacted by squatting tend to be sold at reduced prices, with banks prioritizing economic stability and private owners often preferring a quick sale over owning a property under such adverse conditions. However, the foremost disadvantage of purchasing an occupied property is that the new owner cannot access it—neither to live in nor to rent out—until the squatters are evicted. This process can take considerable time and may involve tedious legal action, often requiring the new owner to initiate eviction proceedings.

Furthermore, there is a possibility that the property may have suffered damage that has not been repaired, meaning the new owner will need to address these issues as soon as they gain access. Related to this is the challenge of appraising the property while it is still occupied. The new owner will face barriers to evaluating the property's condition or potential damage. Online appraisal services can be utilized, but the actual state of the property cannot be accurately assessed while it is occupied. Nonetheless, it is worth noting that some purchase agreements for such properties include clauses that address potential damages.

How to buy a property occupied by squatters? It is advisable to seek legal counsel to avoid any unpleasant surprises and to ensure that your legal team informs you accurately about the benefits and drawbacks of engaging in such transactions.