Q. We have paid a deposit to an international property developer to reserve a villa in Spain. Our intention is to fly out in May on an inspection tour laid on by the developer. However, they have asked us to sign a preliminary contract and have sent this to us now which is ringing alarm bells. Is this procedure correct? I was under the impression that our deposit should be sufficient goodwill?

A. I would strongly advise not handing over either deposits or reservation fees without first inspecting the property/plans and/or taking proper legal advice from an independent English-speaking lawyer to advise you that the transaction is a sound one. At present, the developer has €2,000 of your money and you have absolutely nothing in writing except a tenuous and non-legally binding verbal agreement. In my view, it is a recipe for disaster. I suggest that you find such a suitable lawyer quickly, have them check the credentials and previous building history of the developer and ask the developer to put his lawyers in touch with yours so that a proper, binding contract which protects your interests can be drawn up. Until then, do not sign anything, nor release any further monies.

Q. Having recently become benefactors of a family inheritance, we would like to buy a property abroad which we can visit as well as rent out during the summer months. We quite like Morocco. Can you tell us a little about the typical prices and sales taxes we might have to pay?

A. Morocco has a lot to offer tourists and investors alike – and, as a hotspot, is becoming a major attraction for those wishing to invest in holiday rental property due to its excellent climate and relative close proximity to mainland Europe. The topography of Morocco also lends itself perfectly to beach resorts which give excellent rental potential, with a number of high-end developments having been constructed in recent years.

The process for purchasing property in Morocco is fairly straightforward. The buyer, once an offer has been accepted, is usually required to pay a deposit of around 30% to secure the property and freeze the price. For property costing £100,000, expect to pay around £2,500 in transfer tax, roughly £1,000 in lawyer’s fees and a further £2,500-£3,000 for notary’s fees which include land registry and other certificates. My best advice is to do lots of research, visit your target area several times before buying – as well as talk to UK investors who have already bought property out there to find out the pitfalls. One of the key benefits of owning Moroccan property is that there is no inheritance tax.

Q. My partner and I are looking to buy a cheap property in Spain with a view to living there permanently and commuting to England via one of the many budget airlines. I’m sure you’re aware that we are spoilt for choice with Spanish property due to the similar national downturn in buyer interest but we are still attracted by competitive ‘off-plan’ deals for newbuilds. Can you advise.

A. A lot of new property in the Eurozone is sold ‘off-plan.’ Put simply, off-plan means when a builder or developer produces plans for a development in advance of construction and starts selling units to buyers based purely on those plans. Usually, the buyer will pay an initial deposit of around 5-10% with stage payments until the property is complete whereupon a final payment is due.

A word of caution, however, given today’s financial turmoil which is affecting most other Eurozone countries similarly to the UK. Many developers, even once financially sound and profitable concerns are in deep financial trouble and/or have gone bust. Sadly, many continue to give the illusion of still trading, taking deposits off unwary non-national buyers and disappearing into the night with their money. If you can handle the risk of buying property off-plan, always use a fully qualified English speaking lawyer (not one recommended by the developer or agent) who is willing to place your deposit into a bonded account with a solid bank guarantee which, should the developer go bust, means that your money will be safe.

If you’d like some more information, take a look at our guide to buying property off-plan.