HOW TO BUY A HOME

HOW TO BUY A HOME             Choosing a house is probably the most important decision you will make, from both the economic and personal standpoint. It is therefore essential that all aspects of the property and the conditions of purchase are known to you before the completion, to eliminate any possible unpleasant surprises. Here is the information you will have to obtain: 1. Registered situation of the property. Through the Land Registry, professionals or specialized firms, they verify the location, characteristics, titular, duties, liabilities and entitlements of the property that you wish to buy.
2. Urban rules. These are the rules that regulate the ordination of a determined territory. With a certificate issued by the Town Hall where the property is located, you find out the urban situation of the property and if it is affected by any town planning.
3. Verification of taxes, rates and community charges. To verify if there are any outstanding taxes and local rates on the property that you wish to buy, you shall have to go to the Tax Office of the Town Hall of where the property is located. There, we shall be informed of any existing outstanding debts of taxes or rates (Property Tax, Tax on Increment Value of Urban Lands, Garbage collection service, Drains, etc.....). Regarding the community charges, the Secretary of the property shall issue a certificate on this matter, where we shall be able to check if these charges are up to date.
4. Taxes of the purchase. When you fulfill the purchase you will have to bear in mind that the applicable tax shall be different if the house is new or second hand. For new houses, there will be two: value added tax (applicable tax rate 7%) and the tax for legal actions (the applicable tax rate shall be established by the respective autonomous region and failing the specific regulation of the autonomous region the 0,5% shall be applied). For second hand houses: It will be the Property Assignment Tax, that is the applicable tax rate, which the respective autonomous region determines (7% in the Balearic Islands). Failing the specific regulation of the autonomous region, the 6% shall be applied.
5. Contracts and Public Deed. Under Spanish law there is a wide range of possibilities when drawing up a house purchasing contract (buyerís call, pledge to purchase or sale, standard-form contract, etc), and the contract of sale or purchase. The purchase of a house can be carried out by means of a private contract or public deed, having to identify clearly the property to be purchased, and settling the price. You must bear in mind that the private contract has complete validity and legal effectiveness; either the buyer or the seller can apply for the registration of the property at the Land Registry and in this way the purchase becomes public knowledge. Should you have any doubts or need any clarifications, consult a lawyer or Consultantís office, specialized in real-estate transactions where professional experts will be happy to advise you precisely and with full attention to every detail. Tomás Rocamora. Rocamora y Asesores   Avda. Es Cubells, 1, 1ª, 2ª · San José
Tel.: 971 800 500. Fax: 971 800 501