The Simple Note offers very useful information when buying a real estate. It is a document offered by an official institution that is a great source of information.
The Registry of Property is an institution that has as its objective the registration of acts, judicial or administrative decisions and contracts related to property and other rights over real estate, it is also responsible for some judicial decisions affecting people. In short, the Registry of Property is used to register and have access to data on real estate and the rights associated with them.
There are offices of the Property Registry in many municipalities throughout the Spanish geography, we can know where is the registry office nearest to our address by accessing a search office of the Property Registry.
What is a simple note?
It is a document issued by the Property Registry, it could be said that it is the usual information medium of this institution since it offers information about the owner of a property and the rights and obligations associated with it.
Therefore, the Simple Note will be very useful and could almost be said of a forced consultation when acquiring a real estate. The Simple Note is an information document with very relevant information, because thanks to this document we will obtain information about the person who owns the property, about the charges or debts associated with this property (a dwelling, a garage, an estate, etc.) and On the charges or limitations on the use or ownership of the property. Undoubtedly an information that we will always be interested to know before acquiring any good.
What is a Simple Note and what information does it offer?
We have already seen that we will be very useful before acquiring a real estate, as thanks to this information document of the Property Registry we can know who owns this property, as well as know your debts and other information very useful See below.
1. The land registry.
The most relevant information that we obtain is the property registry, this concept is the most important in the Property Registry. The property registers the type of property (house, solar, garage, etc.), below are data about the square meters, orientation, borders, etc.
Information is also given on the uses of this property, urban classification and for the communities of owners we are shown the coefficient of participation. Finally we are offered in farm number and if it is urban, also the cadastral reference.
2. Ownership of immovable property.
This section gives us information about the owner of the farm, in some cases will also give us information on the tax identification and whether the property has been acquired as a private or a profit. We will also be informed of the form of acquisition (inheritance, sale, etc.), as well as the name of the notary and the date of acquisition.
3. Information on farm loads.
The estate may have debts such as mortgages, or limitations such as rents or easements. These charges may or may not be valid, as the Registry only eliminates them if the corresponding documentation is provided.
4. Other information.
This section provides other relevant information about the farm, such as obligations of the owner (taxes, contributions ...), environmental conditions and other additional data.
Once we have purchased the house and signed the deed of purchase before a notary, it is necessary to perform certain procedures, such as payment of taxes, presentation of the document in Public Records, communication of ownership change in the farm, etc.
We detail all the steps that will be processed directly by the notary where you have signed the deed or if you prefer, you can order yourself:
1. Pay the corresponding taxes: To make the payment you have a maximum of 30 business days from the date of the deeds. You must provide a copy of them and the corresponding form.
If you have bought a new building, and it is the first sale made by the developer, you have to pay VAT, which is given to the developer to enter the Tax Agency. The current VAT for the purchase of houses is 10% of the purchase amount.
In the case of a second sale, that is to say, it is not new construction, the Transfer Tax will be applied between 8% and 10% (depending on the Communities) of the purchase price or tax value determined by the Tax Agency For that locality. Once the tax has been paid, the paper copy of the deed will be presented at the Property Registry for registration.
2. Register the purchase in the property registry: The notary can submit the documentation in a telematic or face-to-face manner. Once examined by the Registrar, the buyer will register the home in his name, and will be given a copy of the deed, with proof of having paid the tax, and change of name.
The following documents must be submitted for registration:
Authorized copy of the public deed.
Proof of receipt of self-assessment of the corresponding tax.
Last receipt from IBI.
With all these documents, the registration makes the necessary checks and within a period of three weeks to a month you are advised to collect the change document and the payment to be made.
3. For your part, we advise you:
- Go to the president or administrator to identify yourself as new owner, inform you of the current situation and provide you with an address for any notification.
- Supplies. Do not forget to change to your name the supplies that affect the house (Light, Telephone, Gas). In the case of direct housing of developer, ensure that in the delivery of the keys you also deliver the bulletins for contracting water, electricity and gas.
- Documentation and invoices. Keep all original documents, invoices, proofs and guarantees regarding your purchase, as you may need them if you decide to sell it.
-Check that you receive the scriptures. In the notary will provide you with a copy of the deed, and will provide you with the original and two copies once you pay the expenses. If you took out a mortgage, you should also keep a copy of the corresponding deed.
-Check the ownership in the cadastre. You only have to be aware of receiving the letter of confirmation of the change, in your usual home before 6 months.
Finally, comment that the seller must make available to the buyer a Certificate of Energy Efficiency.
Documents and formalities necessary for the sale of your apartment:
1. National Identity Document, Resident Card in force, or valid passport, of all registrars.
2. Original writing of the property.
3. Receipt of Real Estate Tax (Contribution), for the current year. In case of having lost it will have to provide proof issued by the City Hall as it is not owed. We remind you that according to Law 39/1988 art. 75 of the fiscal ordinance, the payment of I.B.I. Of the current year corresponds to the registered owner on 1 January of the year of sale. Also, keep in mind that the Notary will verify that he is up to date on payment of the last 4 years of the tax.
4. Community of Owners current of payments. If an Administrator exists, he / she must submit a Certificate issued by said Administrator, with the approval of the President, as he / she is aware of ordinary and extraordinary payments. If there is no Administrator, you must submit a letter signed by the President and the Secretary of the community with the seal of the same, as is current of payments, ordinary and extraordinary. In both cases the last paid receipt must also be provided.
5. Last receipt paid for each of the services of the property. It is advisable not to withdraw from any supply of the property (water, electricity, gas ...) to facilitate the buyer change the name of the same and not make you incur unnecessary expenses. Since it will have its own consumption that has not yet been paid since the receipt of the current month has not been turned, it must provide the actual reading of the counters of the day in which the sale is going to proceed.
6. Certificate of current habitability. The certificates issued before 2004 have a validity of 10 years from the date of issue and those issued after 15 years. Without the valid Housing Certificate, the deed of sale can not be granted. Check that your contribution is required in your autonomous community. In principle, in Andalusia, Aragon, Castile and Leon, Galicia, Murcia and Basque Country is not necessary its contribution.
7. Certificate of Energy Efficiency of housing. In the terms established in the Basic Procedure of Royal Decree 235/2013, of April 5, issued by a competent technician, in which the energy characteristics and energy efficiency rating of the dwelling are collected. The notary will also require this Certificate. In addition, you must process it from the moment you decide to put it on sale, since without it you will not be able to advertise the property.
8. Goodwill of the City Hall. We remind you that it will have to be settled at the corresponding City Hall, within 30 business days from the date of writing of the Sales Deed, and must submit a SIMPLE COPY of said Deed, which must be collected at the Notary's office.
9. Keys to housing. The act of handing over keys at the time of the granting of the public deed of purchase, entails the material delivery of the possession of the dwelling.
10. Condition of usual residence of marriage. In the case that the house constitutes the family home and is owned only by a member of the couple, they must come to the signature both, so that whoever does not own it consents in its sale.
11. Technical Inspection of Buildings. The certificate of suitability in case the building has been forced to pass the Technical Inspection of Buildings (ITE).
The technical inspection is obligatory:
A) If determined by the Program of mandatory technical inspections.
All residential buildings must be subjected to technical inspection before 45 years old, taking as a date the one that appears in the cadastre. For multi-family dwelling buildings older than 1950 Age of building / Term to pass ITE inspection
Between 1951 and 1961: Until 31 December 2015
Between 1961 and 1971: Until 31 December 2016
From 1971: The year that turns 45 years old.
B) If determined by local programs or ordinances,
C) If the building or dwellings of the building have to receive public aid programs
The obligation to submit housing buildings to technical inspection corresponds to the property.
12. Guarantees. In the case that the dwelling is less than 10 years old, it must provide the decennial insurance for hidden defects and structural defects, which was given by the developer on the day of its acquisition.
13. With reference to possible loads on the property being transmitted:
A) MORTGAGE: If the mortgage is not amortized, it must provide the Pending Capital Certificate, plus interest and commissions to proceed with its cancellation on the 3 days following the day established for the signature, which reflects the loan number and The farm (address and property register). If the mortgage is fully amortized, you must provide the Zero Balance Certificate that reflects the loan number and the property (address and registration), to proceed with the cancellation of the registration. In both cases, a provision of funds must be made to guarantee the cancellation of the mortgage by means of an appropriate payment letter.
B) CONDITION RESOLUTION: Contribution of all bills of exchange of the deferred payment that are recorded in the deed (amount, maturity, class, series and number), to proceed with its cancellation. In the case of having lost any, you must ask the creditor for the letter of payment of the debt, if it had not yet been prescribed.
C) USUFRUCTO: In case the usufructuary had died, present Death Certificate of the same, to proceed with the cancellation of the usufruct. Otherwise (in life) the beneficial owner must be duly identified on the day of signature.
Buying a home is one of the most important investments. Knowing the expenses and taxes that must be paid is one of the most relevant issues. A sum that, on average and depending on each community, is between 8 and 13% of the price of housing and that it is necessary to have it saved.
The VAT and the Tax of Patrimonial Transmissions (ITP) are the most outstanding payments. VAT is paid on the purchase of a new home (first transmission) and ITP is paid when buying a second-hand or second-hand home. It may happen that no one has lived in a house, but a transmission has already been made to a financial institution, for example, and for which the purchase is already considered a second transmission.
How much is it? With respect to VAT, there are two types that tax the home: 10% if it is free and 4% if it is of special regime official protection. This VAT is also applied to garage spaces that are purchased together with the dwelling up to a maximum of two.
Another of the Taxes of the new housing is the Documentary Legal Acts (AJD), also transferred to the autonomous communities, which varies from others, but ranges from 0.5% to 1.5%. This tax levies the legal documents necessary to convey the property and is a percentage of the value of the property in the deed. This indicates that a new home pays VAT (10% or 4%) and AJD (0.5% - 1.5%). It should also be remembered that the AJD tax is applied at the time of setting up a mortgage.
As for the ITP for used housing, its management is ceded to the autonomous communities and its percentage varies between 6 and 10%, but there are exceptions. In Madrid it is 6%, but in Galicia, depending on the economic situation of the buyer, it can be 4, 7 or 10%. The percentage is applied on the book value of the property. Canarias is governed by the IGIC which is inferior. And the large families have a lower ITP, which is necessary to check in each Autonomous Community.
But apart from these taxes there are other expenses that must be taken into account:
- Public deed in the Notary's Office. The notary's costs are set by regulations and their amount depends on the amount of the property, although it can be increased by aspects of the notarial operation: number of copies, extension of writing, etc. In official housing and subrogations, a reduction in tariffs is applied. As an example, in a housing of 200,000 euros can be around 550 euros.
- Registration in the Property Registry. They are the fees generated by inscribing the purchase-sale in the Property Registry. They are also set by regulations and their amount depends on the price of the property. If we based on the previous price, would be around 400 euros, always guidance.
- Management. In charge of bringing together all the paperwork and payments so that the buyer only has to go to the firm. It is especially important when the transaction takes mortgage loan. Their prices vary according to the paperwork they must do, they can be around 200 -250 euros in the sale, plus the part of the mortgage that depends on the amount ordered.
But these are just the expenses and taxes of the purchase. If you are asking for a mortgage you have to add some more, associated with the contracting of a mortgage loan:
- Valuation: paid to the authorized appraisal company that was in charge of calculating the value of the house. Lately advertised first-line appraisals from 250 euros, but depends on the surface of the house.
- Property registration. In addition to inscribing the sale, you must add the mortgage deed.
- Notary: the notary is the one who gives public faith of the deeds of purchase and sale and mortgage loan.
- The constitution of a mortgage loan is taxed by the Tax of Documented Legal Acts (AJD), a tax that depends on the Autonomous Community and which is between 0.5 and 1.5% of the value of the mortgage guarantee.
- Processing costs by the Agency: administrative procedures (registration, payment of taxes, etc.).
- Opening fee: Charged at the time of granting the loan in respect of the costs of analyzing the feasibility of the operation that the financial institution faces.
- Damage insurance: The financial institution will request, by legal requirement, the applicant to sign a damage insurance that covers the value of the property assessed.
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