- Before making the purchase of housing
- In relation to the contract and its financing
- In relation to the rights and obligations following the signing of the sale
1.1 Promoters and / or usual sellers of homes are legally required to provide data to buyers through the advertising they do, and this is so, even though it is not expressly mentioned in the contract (advertising requires).
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The name and address of the promoter, address and data entered in the Business Registry. |
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The site plans for housing and the housing itself, with a useful surface expression of the building, services and supplies, common areas, etc. |
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Data from the Land Registry |
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Property damage insurance and hidden defects under the new Building Act (Law 38/1999 of 5 November) |
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Copies of licenses for construction and occupancy of housing. |
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The total sale price and form of payment. |
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If subrogation of mortgage is foreseen, the same data. |
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The way the contract is intended to be documented. |
1.2 In the event that the sale is made by an individual (second-hand housing), the seller must also obtain at least the following documentation.
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Property registration information of the seller or transferor |
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The receipt for having paid the last installment of the Real Estate Tax. |
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The certificate of the secretary of the homeowners association with the approval of the president, attesting to be current on payment of costs of community. |
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A copy of the statutes of the community registered in the Land Registry, and if so, the current regulations. |
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The sale may be a private document, or a public one authorized by a notary, but the buyer has the right to require a public document (the Civil Code says it must be recorded in a public deed). And that,as well, it has to be registered in the Land Registry, as this, gives the purchaser legal security.
The price is the compensation paid to the seller, and as such, it is an essential requirement of the sale. It mustn´t be done fully without having verified previously the documents above.
Often, before signing the contract, a compromise can be established through the payment of a partial amount of money by way of "earnest" or "signal". In these cases, on the assumption of the withdrawal of the contract from the buyer, this one loses that amount. If the seller gives up, he is obliged to return the amount doubled.
We must distinguish three cases : payment of the cash price, the deferred price and the subrogation on pre-existing charges.
When making a partial payment on account of the price in cases of "buying off plan", ie when the building is not yet built, the law requires the promoter to ensure that the purchaser will have that amount repaid in case of breach of contract, including the legal interests, by an insurance and without prejudice to the proper fines (which can reach up to 25% of the amounts to be returned).
Deferred price . If part of the price is postponed despite the absence of burdens, then it is the seller who must take certain precautions. In particular, it is advisable to ensure that part of the price which payment is deferred, either by a subsequent condition on pre-existing charges (so that if the buyer does not pay within the agreed timeframe, the property goes back to the seller), or by mortgage, so that in case of default the property is auctioned to pay the seller.
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After signing the deeds they should immediately be registered in the Land Registry. This registration is voluntary (the Law doesn´t impose it as compulsory), but it is advisable to achieve the proper degree of legal security and guarantees explained above.
Together with our request we must provide a certified copy of the deed of sale in the registry.
Before the registration the Transfer Tax levied on the sale must be paid. To determine the amount of that tax it is necessary to distinguish between the promoter purchase (new house) and the purchase to a particular (owned home).
a) In case of purchase from a promoter, the transmission is subject to Value Added Tax (VAT) payable by the purchaser directly to the seller, who must then deposit it at the Treasury. Currently, the general rate is 7%. If you buy a parking space along with housing, you pay VAT at the same rate. If purchased separately, you will pay the standard rate of VAT to 16%.
Also you will have to pay the Stamp Duty tax at the rate of each autonomous community. The settlement of this tax can be made by personal delivery or by a notary or a manager.
b) If a particular purchase, ie, when it comes to existing homes or resale properties, you must pay the Transfer Tax rate for the Autonomous Community where the property is located. In principle, it corresponds to the value declared in the deed, without prejudice to any checkings of the Treasury. In case of difference between the stated value and actual value, complementary liquidations are sent, and eventually, if the difference exceeds certain percentages, sanctions that may be severe can be imposed.
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