All procedures step by step.
1. Initial checks
Once the decision is made in regard to housing to be acquired, the first step before giving a signal, or signing a contract, is to verify the legal status and material condition of the house chosen.
Legal situation. Land Registry.
To verify legal status must contact the Land Registry and request a certified registry note (photocopy of the registry which contains the farm) in which to check whether the seller actually owns the dwelling and if it is free of charge, such as embargoes or mortgages.
The registry note carries a minimum cost. While it has a drawback: being a photocopy of the registry, does not include updates on the status of the estate and therefore there may be recent notes, pending registration, which has not yet listed. In order to ascertain the actual situation of the farm, you can ask the Registry a Certificate of Ownership and charges, in which the registrar certifies the date of the farm situation, including possible seats awaiting registration. This certificate carries a higher cost. Each ponetasas officialdom.
The charges contained in the Land Registry may be exclusively registry, ie, that being canceled economically, you have not registered this fact. (Mortgage fully paid or other official documents proving it). In this case it is the seller who is obliged to handle cancellations mentioned, prior to the sale.
Urban situation. First Occupation License.
To verify the legality of urban housing should request a copy of the First Occupation License good seller, either at City Hall where the property is located. In many cases you do not have the document, but the fact of having discharged all supplies, taxes, etc., makes it not imperative.
Economic situation. Property Tax and community fees from owners.
In order to verify that the home is aware of the financial obligations incumbent upon it, it is imperative to ask the seller the last receipt of Property Tax (IBI) and the last receipt of payment of the fee community owners.
This check is very important because, once the sales transaction, debts that may exist both for unpaid property tax and community ownership, will be borne by the new owner. If the debts are significant you can agree with the seller that they are subtracted from the purchase price.
Article 9 of the current Condominium Act provides that whoever acquires a flat or responds with own property acquired amounts due to the homeowners by previous owners for the maintenance of overhead premises. But its ceiling is set at the amount due in the year of purchase and the immediately preceding.
Also, the rules governing the Property Tax (IBI) provides that in cases of change of ownership, the property is affected to tax.
2. Information to be provided by the seller
The seller of a property must give the prospective purchaser, in order that it can carry out the checks described above, the following documents:
Photocopy of deed, or, failing that, registry housing data. If the vendor does not provide this information, simply with the direction of the housing you can go to the Land Registry.
Photocopy of receipt of payment of the last installment of the Property Tax (IBI), which must bear the rateable value of the property, essential in order to numerous taxes and paperwork needed for various data.
Certificate issued by the homeowners of being current on payments.
The overall level of housing, which subsequently need to deliver the bank or which, if any, prompted the mortgage. Often simply descriptive sketch of the distribution.
The statutes of the homeowners.
3. The contract
After making the necessary and in order to ensure operation as proper credit is processed checks, it is customary to sign the vendor contracts of the following:
Usually, the signal is a deposit which is then subtracted from the total purchase price and the buyer delivery to ensure the reservation of housing for a certain period.
It should be set to the same contract what the consequences will be in the event of default occurs, the seller either by withdrawal or resignation of the buyer.
Stock option contract
In this case the prospective buyer pays a price in the form of purchase option, ie that acquires the right to buy the house at a certain time. Therefore, the outstanding amount does not necessarily have to be part of the final purchase price if the operation is carried out.
Private purchase contract
In this case what is agreed is the outright sale of housing. This contract is perfectly valid and effective to transmit home ownership if accompanied by the delivery of it, by forcing contractors and their heirs under the terms agreed so that both sides must fulfill what they have signed. The private contract is not valid against third parties, so it is advisable to raise public deed before a notary (they may require any party) and register the change of ownership in the Land Registry, to prevent fraud by second sales.
Drafting of the contract
The wording of the contract must be agreed with the seller, but are essential in any case the following clauses:
Identification of the seller and the buyer, the recognition of their legal capacity to contract and character with which they operate.
Property identification, registration data, description and location and charges that are levied.
State financial obligations housing (Property Tax and Fees Community of Owners).
Object of the contract (signal, option, purchase).
The purchase price and payment, as well as guarantees for the portion of deferred payment price.
If there is mortgage loan conditions in the case of subrogation in it by the purchaser. If the home is acquired free of charges and shall be stated in the contract.
Apportionment of costs associated with the sales transaction. If nothing is said, it will apply the provisions of law. Typically, the buyer to bear all expenses except the Tax Increase in Value of Urban Land, known as surplus value, which is paid by the seller.
Upon delivery of the keys (usually it is agreed at the time of execution of the deed).
Deadline for grant deed. (It is advisable that not too short, in order to allow time to apply for the loan and solve other issues).
Effects of termination of the contract, or the breach of the obligations of the parties.
Date and signature of the contractors.
4. The Deed
While our legal system does not require the granting of the deed to the validity, effectiveness and legality of contracts, yes that is necessary if you want to register the acquisition of the property in the Land Registry, must act for the title property is valid against third parties.
The Deed or elevation to that of the private purchase contract is drawn up by the notary, who will be chosen by the purchaser when it is this which will meet your fees. In writing shall include the following, many of which were already collected and agreed in the contract between the parties:
Identification and capacity of the contractors.
Physical description of the property, title acquisition and registration in the Land Registry title on behalf of the seller.
Burdens on housing. The notary is obliged to make a final check by fax from the registration status of the property, unless waived by the buyer (which is not convenient), declaring himself satisfied with the information received from the seller and invoking urgency.
Status of payments of community fees. It is included in writing a copy of the certificate issued by the community.
Proof of payment of taxes on Real Estate (IBI). The notary included as part of the deed of sale a photocopy of the last receipt of IBI satisfied by the seller.
The purchase price and payment.
Subject to the laws and tax obligations arising from the sale.
Distribution of operating expenses between buyer and seller.
Settlement notary, specifically mentioning the basis for the application of tariffs, number of applied tariff and the fees that apply.
The notary is required to read in full, or to read to the participants, writing at the time of signing. Sometimes notaries limited to briefly review the contents of the script, so it is very convenient to apply the full read (or read it yourself) in order to ensure its content, asking for all clarifications, clarifications and explanations necessary the notary. The notary drafts and authorizes not only the contract but also technical advisor and impartially to both sides, warning them of the applicable laws, services already included in their fees.
The falsity of the circumstances contained in the deed a criminal offense, which is an important guarantee for all.
5. Settlement Transfer Tax
Once signed the deed and before its registration in the Land Registry is required to liquidate the corresponding Administration in taxes on the transaction, which in the case of the transfer of second-hand housing is the transfer tax, details of which are collected at the end of this guide.
6. - The registration
Once signed the Deed appropriate registration in the Land Registry, although prerequisite payment of the respective taxes, particularly taxes on the transmission itself.
Although registration in the Land Registry is a voluntary process, it is convenient to do so, not only because it is essential for any new transfer of the property, but also to safeguard the buyer of sales fraud latter by the former owner.
Filing for registration in the Land Registry the first copy of the deed of sale to be properly registered is required.
Registration will be conducted by an administrative manager in the event of a home loan processed together, in order that the loan is paid at the time of its execution.
7. Changing the ownership of housing in the Domesday
Once all the above steps must be updated at the Center for Cadastral Management ownership of the property by completing the appropriate form for it.
Expenses associated with the sales transaction. Taxes and notary and registration expenses.
The operation of buying a home entails a number of taxes and processing fees (writing, registration) which significantly increase the price of housing.
Importantly, the transaction costs are independent of the cost of the mortgage loan usually requested for the purchase of housing, though the liquidated all together there is some confusion about the amounts and percentages involved. They are two different operations that can be carried out independently.
Then the expenses relating to the sale, as well as the contracting party liable for payment under applicable law are detailed. In this regard it should be noted that any agreement is valid for the distribution of costs between the parties involved, although in the event that there is no express agreement, will apply the provisions of the Act.
8. Expenses paid by the buyer
Notary, for the execution of the deed of sale and copies of it. The Civil Code provides that the notary fees are distributed among the contractors so that the seller bears the cost of the matrix of the (original) deed and the buyer is obliged to pay the cost of the first and subsequent copies. In practice all notary fees are assumed by the buyer.
- The notary fees associated with the transaction are calculated on the value of the house deed, on which a tariff is applied.
- Registration costs, corresponding to the registration in the Land Registry of the deed of sale, which also calculated by applying a tariff on the deed of the house value.
- Both registrars notaries are obliged to provide comprehensive information on the assessments they carry out, which should be detailed in the deed.
In this regard, the resolution of the General Directorate of Registries and Notaries of 14 July 1998 states that notaries and registrars have the following obligations:
- Engage the public tariff settlement document, mentioning the applied numbers and fees applicable to each act.
- Deliver the relevant stakeholders fee note, duly signed and with express reference resource that fits against it and the deadline for its challenge.
- Having available a complete copy of the tariff, with its implementing rules, and a table showing the related rights.
- Transfer Tax. It is a state tax, the management, performance and control of the tax rate is transferred to the Autonomous Communities and gravel, among other acts, the second and subsequent transmissions homes.
9. Expenses payable by the seller
Notary fees corresponding to the (original) matrix of the deed of sale. Usually, although the Civil Code states that this expenditure is paid by the seller, your payment is agreed by the buyer. The cost is calculated by applying a tariff on the price of housing deed.
Tax Increase in Value of Urban Land. (Antigua goodwill). It is a tax whose payment is for the seller unless otherwise agreed by the parties.
The increase in value is calculated taking into account the assessed value and the number of years elapsed since the previous transmission. This increase the tax rate, which is a percentage set by each municipality according to maximum and minimum set by law applies.
It is important to note that in case of default the Municipal Administration can only take action against the seller, although it has been agreed the payment by the purchaser, all without prejudice to the seller subsequently requires compensation for the amounts satisfied buyer.
It is a self-realizable tax. Self-assessment must be presented at City Hall within 30 days of the signing of the deed of sale.
Cancellation fees from previous loads: Corresponds to the seller meet all payments under loads that had the home prior to purchase, both economic and registry unless it is agreed between seller and buyer that certain loads the assume the buyer, as in the case that the purchaser is subrogated levied on the estate mortgage.