Transfer of money from sale of Spanish Property - by cheque?

stuartpage

Hello MSExperts,
I have a buyer for a spanish apartment that I've inherited and want to ensure I can get the best exchange rate for the amount once it converts from euros to uk pounds. The completion is due end March (Brexit deadline).

I have a Santander account and had considered having the money electronically transferred by the buyer, however I understand that the buyer will need to bear the costs for this if we do this - something they may not be keen to do. Also if it is done this way, I would need to accept the Santander rate on the day , which may not be as advantageous as it might be.

Since I will be going over there to finalise the sale, I was considering bringing the cheque back across with me, monitor euro rates and then take the cheque into my Santander when I am more in control of getting the best rate.

If not, what would you suggest is my best route to getting the best UK pound amount?

I have already taken into account ensuring taxes and other fees will be covered and settled in local euro currency before transferring the remainder back to the UK.

Many thanks Stuart

eddddy

stuartpage wrote: »

I have a Santander account and had considered having the money electronically transferred by the buyer, however I understand that the buyer will need to bear the costs for this if we do this - something they may not be keen to do.

If the buyer transfers the money, their bank is likely to want a fee - but that can easily be deducted from the amount sent. (e.g. They just send 50 euros less, to cover a 50 euros fee.)

Your bank might also charge you a fee, and make more fees on changing the euros to pounds.


BUT... is that really an option? There are likely to be protocols about not handing over the keys until the money is received etc.

So the buyer might have to transfer the money to a notario's account, so the keys can be released, and then the money transferred to you.

stuartpage wrote: »

Since I will be going over there to finalise the sale, I was considering bringing the cheque back across with me, monitor euro rates and then take the cheque into my Santander when I am more in control of getting the best rate.

Again, presumably you won't accept a cheque from the buyer - they might 'stop' it before you've even reached the plane (or have insufficient funds in their account to pay the cheque).


FWIW, there are FX transfer companies who offer better rates than the high street banks, but unless you have a bank account in Spain - I doubt you'll be able to use an FX transfer co.

stuartpage

Thanks Eddddy - yes, I was looking to get a cheque from the notario, not the buyer - perhaps I just need to agree the best time for that to be transferred direct into my Santander acct by the notario.

G_M

Are you considering accepting payment from the buyer by cheque? That will doubtless mean the buyer giving you the cheque, what? 10 days before the sale completes so that the cheque can clear irrevocably into your (Spanish? UK? account).


Alo meaning you have little flexibility about timing the cashing of the cheque. You'll need to do so asap.


Or fo you mean the buyer pays into your Spanish account and you write yourself a cheque to move the money to the UK?


Finally, I'm unfamiliar with Spanish property transaction processes, but hopefully you are not!

AnotherJoe

I think your plan is flawed.
If you know when the best Euro rates will occur, why arent you a multi millionaire already?
I suggest you use an Fx service to get a better rate at whatever time you transfer it, rather than transfer it to Santander via bank transfer or cheque. Once its in the Fx service then transfer it to Santander.

stuartpage

Thanks - and for clarification from my original post I'm considering how to transfer the money from the notary and not direct from the buyer.

AdrianC

Get the money into your Spanish account first.

Then think about whether to transfer it immediately or wait until any immediate instability has stabilised. Of course it's going to be a gamble... Any non-trivial FX always is.

(FWIW, my money's on the A50 deadline being extended, so the UK remains an EU member into April, and probably for at least a month or two. The May euro elections will focus minds as to what to do then.)

brianposter

AdrianC wrote: »

Get the money into your Spanish account first.

In the modern world, you need to be careful about this as even transferring money out of your bank account may be chargeable.

I would certainly inquire of the odd currency transfer agent (Moneycorp etc.) as to whether it is possible to get money paid direct into one of their accounts.

As MC do appear to have a Spanish office I suspect this may be the best way to go.

supa34

Pay using transfer wise
Get the best rates and transfer to account.

VFR

As others have said ............
Money into your Spanish account via the Notario / Solicitor (never a cheque)
Use Currency Direct or similar.




Done the same as you a year ago using the above with no fees from the bank & little cost from CD, exchange rate was good (not the best) but fees were low.

brianposter

VFR wrote: »

As others have said ............
Money into your Spanish account via the Notario / Solicitor (never a cheque)
Use Currency Direct or similar.




Done the same as you a year ago using the above with no fees from the bank & little cost from CD, exchange rate was good (not the best) but fees were low.

Isnt standard practice to use a bank cheque which the purchaser pays for ? A cheque may be more flexible than anything else and is often cheaper.
In recent years I have found a cheque to be the most satisfactory method of payment in Spain.