Nine steps to follow if you are buying a home. (Part 2)

In my previous article we did mentioned that the first point to have clear in your mind before beginning the process of purchasing a property in Spain is the type of house that you really need, obviously, also where you were likely to find the biggest offer of houses for sale, how to prepare your budget, how to determine your financial capacity in order to obtain a loan and…. the financial effort required to pay the mortgage.

 

This week we will continue with other guidelines which although at first site may sound basic information but you will be surprise as to the number of people who overlook this elementary procedures and get themselves in deep waters without any need.

 

6. Information about the property to be purchased.

It is imperative that at least you should obtain the following:

The name or business name, address and, where appropriate, the data of the company selling the property

At least you should be provided with:

- General plans of the house, location plan, as well as description and layout of the electricity, water, gas and heating installations and guarantees thereof, and of the fire safety measures of the property.

- Description of the dwelling with indication of its net area, general description of the building in which it is located (in case of an apartment), indication of the common areas and the ancillary services.

- List of finishes: Reference to the materials used in the construction of the house, including thermal and acoustic insulation, and of the building and common areas and accessory services.

- Instructions on the use and conservation of the facilities and on the evacuation of the property in case of emergency.

- Data identifying the inscription of the property in the Property Registry or expression of not being registered in the same.

- Copy of the building license, the urban permit and the first occupation license, if any.

- Statutes and rules of operation of the community of owners, if any, as well as information on service and supply contracts of the community.

- A copy of the Energy Performance Certificate.

- Total price of house and ancillary services and method of payment.

- Insurance or guarantee that guarantees the amounts paid on account. Discount of the amount paid on account of the total amount of the sale.

 

 

7. Costs and taxes.

In case of newly built housing, the purchase is subject to the payment of VAT, currently at the rate of 10%, and to the payment of the IAJD - Tax on Documented Legal Acts, with regards to the granting of the Public Deed of Sale.

In the Community of Valencia, as regards the IAJD, a gradual rate is established according to the real value of the dwelling that includes the annexes and parking spaces that are sold together with the house, even if they constitute independent registers, being the maximum rate of 0.75% (this could vary with the time) on the value of the house.

In addition, if the purchase is made with a mortgage, the IAJD will also have to pay and the law obliges to have it quantified, which is the cost of the mortgage liability. However, in the event that you surrogate to the existing mortgage on the dwelling, it will not be necessary to pay this IAJD, which has already been paid by the developer, but, in the future, mortgage cancellation fees will be required to be paid by you.

Finally, in relation to notary and registry expenses for the granting of the deed and registration of the purchase and, if applicable, the mortgage loan  in the Property Registry, the buyer is responsible for the costs of first and subsequent copies of the deeds, the registration in the Property Registry, the IVA (VAT) and Legal Documents Acts tax.

While the seller should pay the tax on the over value of the property and the cost of original deeds.

 

You should know that the buyer is entitled to the election of notary where the deed of sale will be granted, provided that said notary has territorial jurisdiction in relation to the place of location of the house or the domicile of the parties. 

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