Buying overseas property – 3 month checklist

When you’re fully committed to buying a property overseas, the process can move quickly. On average, in most countries it takes around three months from having your offer accepted to getting the keys. So what will you be doing in those final three months when buying a property? This is your buying overseas property final checklist.

Your first step, if you didn’t do so when first planning your purchase, is opening your free currency account with Smart Currency Exchange. When you have done this, and been assigned your own dedicated account manager, we can work out an accurate budget with you. Then you’ll be confident in speaking to an estate agent. Your estate agent will also have more confidence in you – knowing you are a serious buyer. Okay, next steps…

This guide is designed for buyers who already know where they want to buy and are now focused on viewing properties, making an offer and completing within the next three months.

Step one – viewing properties

Let’s assume you have shortlisted properties on your trusted property portals via a ‘virtual viewing trip’ and made your introduction to the estate agent. Viewing trips can be done any way you like, but a workable format might be:

Taking three to four days. Any less than this and you’ll barely get to know the area. If you stay over a week you may start to get overwhelmed with choice.
Be guided by your estate agent and the distance between properties, but a maximum of five per day seems sensible.
Leave time at the end of your trip for revisiting favourite properties.
Professionals tend to take weekends off too, so best to go midweek, and avoid national holidays (some countries have a lot!).
Stay in the local area. An Airbnb or local hotel will normally be best as you get the chance to feel within the community, rather than a vast hotel.
You may want to rely on the estate agent to ferry you round, as you’ll learn a lot just from sitting in their car chatting. On the hand, you’ll be less independent and only see what they want you to see.

Viewing the surrounding neighbourhood, access routes and local amenities can be just as important as the property itself.

Sorting your paperwork

For a viewing trip you will generally just need your passport. However, some countries have different procedures. When buying in France you may be asked to sign a bon de visite. This simply agrees that you won’t subsequently approach the vendor directly.

Other agents may request that you show proof of available funds. This is to avoid them wasting time on buyers who are in no real position to buy. It’s worth noting that an agent may be committing to driving you around for the better part of a week.

While there you can get some paperwork out of the way too. For example, buying a property in Spain you will need an NIE – a tax number – before you can progress very far with your purchase, so why not do this between viewing? Your estate agent or lawyer (always worth contacting them before heading off to view properties) will be able to advise on this.

With European countries you can often fly there in the morning and come back in the evening, so don’t be deterred from popping back to take a second or third look. That’s less easy if buying a property in the USA or buying in Australia, so plan to stay longer.

Step two – making an offer and agree terms

When you find the right property, the next step is to make a formal offer through the estate agent.

It can be hard to know if you are paying the right price when operating in a new market. But there are certain principles:

Look for any official data on the market. That will tell you if you’re in a buyers’ or sellers’ market.
Check out similar properties in the area via local property portals.
If you have engaged a lawyer and/or surveyor, ask their opinion.

Your offer should also reflect any work that may be required. In many countries, the agreed price is only one part of the negotiation. Completion timelines, included fixtures and conditions attached to the offer can also be discussed.

At this stage, it is important to understand what deposit will be required and when it must be paid. In a fast-moving purchase, deposits are often due within days rather than weeks. If you have pre-funded your Smart Currency account this will be easier.

Beware – currency risk!

Once you have agreed to buy at a price in the local currency, you are now exposed to what we call ‘currency risk’. So if buying a property in Italy, if you agree to pay €300,000 and the current exchange rate is £1 to €1.15, you will expect to pay about £261,000. But if by the time you complete the exchange rate is now £1 to €1.12, you will need to find £268,000 to complete – £7,000 more. Of course, it could move in your favour and you are £7,000 better off. But unless you are the sort of person willing to go into a casino and put £14,000 on red, you may not be happy with such a gamble!

To avoid that risk and know exactly what you will pay on completion, speak to us about a forward contract.

Step three – instruct a local lawyer and carry out checks

Before committing to the purchase, you should instruct an independent lawyer who specialises in property transactions in that country. If they speak your language too, so much the better, especially when buying in a very different jurisdiction, such as Dubai.

Your lawyer will check ownership, planning permissions, debts attached to the property and whether it can legally be sold. They will also explain the contract terms and highlight any risks before you sign.

Depending on the age and location of the property, a survey or inspection may also be advisable. Even if not legally required, this can prevent costly surprises later.

Step four – sign the reservation or preliminary contract

Once legal checks are complete, you will usually sign an initial contract and pay a deposit to secure the property.

This step legally commits both buyer and seller to the transaction and sets a completion date. Deposits at this stage are often non-refundable, so it is important that all checks are completed beforehand.

Because exchange rates can move significantly in short periods, many buyers choose to plan how they will transfer funds before signing, rather than reacting under time pressure.

Step four – prepare for completion and final payment

In the weeks leading up to completion, your lawyer will coordinate final paperwork and confirm the exact amount due (although if relying on a spot contract you will not know until the moment you actually pay). A small movement in the exchange rate can add or remove thousands from the cost of an overseas property, especially when transferring large sums. By planning currency transfers in advance, buyers can reduce uncertainty and ensure funds arrive on time for completion.

This is also the time to plan removals and organise the connection of utilities. You can pay for these with a regular payment plan (RPP) from Smart Currency, even using a forward contract so you know what the monthly payments will be.

If you are applying for a visa, this will be the time to ensure this is on track. However, beware the authorities holding onto your passport while they do that. If necessary, you can give your lawyer power of attorney to complete the purchase without you being physically present.