Home Purchase Guide
The decision of purchasing a home is one of the best and most important decisions that you can make in your life. After all, a house is the most important investment in the life of the majority of people for it is extremely important to be well informed of all the steps that one has to follow. Hermes & Mathew Barcelona Real Estate would like to assess you all along the whole process.
The first and most important aspect to consider before a home purchase is to decide an approximate budget.
The quantity destined for the home purchase should not overcome 40% of the net monthly income.
Moreover, one has to take into account the initial expenses when purchasing a home as it could increase up to 10% and 12% of the price.
Decisions to take into account in the time of starting with the search:
- First of all, decide the area in which you wish to purchase your home.
- How to start searching?
There are a great number of possibilities: through specialized press, Real Estate Portals, doing an examination of the area, or going to a Real Estate Agent. A good option is going to a Real Estate Agent due to an ample property portfolio of the area and we assess you in everything that is concerned with the purchase as well as the knowledge of the area among others.
The Real Estate Agent can help you save your time with many trips and useless paperwork. If you are able to express your needs with clarity and the type of home you are looking for, the intervention of a professional in the field can help you save a lot of time.
3. The characteristics that the home you are looking for should meet.
Once you found your future home, there are a number of questions to consider prior to the purchase of it:
- Useful surface of the home such as the number of bedrooms and bathrooms, storage spaces, and exterior windows.
- The facing of the home, important to enjoy the natural sunlight!
- The quality of the construction of the materials used for the building of the property.
At this moment, a series of verifications should be made in order to insure a successful operation.
- Going to the urban city planning to verify that the area where the property is located will not be affected by future urban plans.
- Property registration. The property registration is a public and official file where all of the acts are registered and other rights to the Real Estate. In the register we can identify the current owner and if the building is encumbered with mortgage or with another right, such as records of garnishment, subsequent conditions, etc.
- We will have to verify that the home we wish to purchase is up to date with the community payments and if there is an approved apportionment. If there is an apportionment in a short term for this, we will have to go to the building’s administrator or to the president of the community so he/she is able to issues a certificate and reports it on the day of the signature’s notarial deed.
- Verify that the home is up to date with the property tax payments, (IBI).
The law establishes which expenses correspondent to the buying and selling of the property are in charge of the buyer, while the seller must face the payment of the surplus value.
If we buy a newly built property, being the owner a Real Estate promoter, the law obliges him/ her to abandon the municipal surplus value and the expenses of the declaration of the newly built property and horizontal division. He/she also must be in charge of paying the cancellation of the mortgage that exists within the property as long as we do not extend the mortgage that is already built.
The expenses that run the buying-selling are.
The expenses of the notary are those produced by the consent of the notarial deed of the buying and selling. The costs of the notary are fixed by normative and its amount depends on the price of the property.
These are the fees generated to enroll the buying and selling in the property registration. These are also fixed by the normative and its correspondent amount will depend on the price of the property.
In this section, the taxes to be paid will depend on whether we are dealing with a newly built property or if it is second hand.
If the property dealt with is newly built, the future buyer will have to pay the VAT (10% currently). If the property that is being bought is second hand, the VAT will not have to be paid. However, the ITP (the property transfer tax), which varies according to the autonomous community and goes from the 6%-10%. There are also reduced types for some cases (VOP, large families, youth, etc.)
There is another tax that we should pay which is the same whether we purchase a newly built property or a second hand one. This tax id ADJ (the Stamp Duty) and its price will also depend on the autonomous community. It oscillates between 0,5% – 1,5%.
Lastly, and only in the case of the second hand properties, as long as a mortgage is required, the expenses of administrative work should be paid. The administrator carries out all the necessary procedures until the enrollment of the registered deed of sale in the property registration.
If the property you wish to buy is second hand, before purchasing it you will have to revise the following paperwork:
- Title of the property of the transferor.
- Last annual bill of the IBI (property tax or urban contribution)
- Certificate of the owner community that verifies that the seller is up to date with the payment of the community expenses.
- Simple Note of the property registration.
- Last bills of the utility services >(water, electricity, etc.)
- ITE, Technical Inspection of buildings, regulates the conservation of properties.
- Original copy of the certificate of occupancy.
- Original copy of the Energetic Certificate.
If the property you wish to buy is a newly built home, before purchasing it you will have to revise the following paperwork:
- Name or Company name or the promoter, address and enrollment details in the trade register.
- The blueprint of the property’s location and housing.
- Description of the property: Useful surface, utilities and supplies, common areas, security measure, etc.
- Technical specifications and certificate of energetic efficiency.
- Details of enrollment of the property in the property registration.
- Contract with its general conditions as well as special (price, payment form, delivery time, etc.)
- Certificate of occupancy or the definitive zoning classification (VOP).