Often these tenants are foreigners living in Spain with little knowledge of their legal rights or the legal system and property laws in Spain.
Louise Cant from Hudson International Properties said: "New clients enquiring about long-term rental properties are asking for details of the owner’s financial status and also proof that their mortgage has been paid. For Hudson International it is standard proceedure to ensure before listing a property that the owner is not facing repossession, however, private owners are still offering their properties even when repossession is imminent."
Tenants do however have rights and Under article 13.1 of the Urban rental law which translates roughly as: "If during the first five years of the duration of the contract, the right of the landlord to the property is removed due to mortgage or court sentence, the tenant has the right to continue the rental contract up to five years."
The tenant must however provide a valid rental contract.
To safeguard against any problems it is advisable to use a reputable letting agent or property finder who can also provide legal advice for existing tenants in the above situation.
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