Little Real Estate

Having your own home is like a dream come true, but there are many complexities and legal issues associated with it. You will need to ensure complete all legal formalities before and after buying the house. These legal proceedings can save you from stress and much bigger problems. Some of the most important tips to keep in mind when buying a property are:

1. Advertising: This is the first step to be taken before you buy your desired home. You must advertise in local newspapers stating their intentions to purchase a home with specific characteristics.

2. Documents Verification: The verification of the documents is one of the critical issues in the purchase of your home. You should check all documents related to the legal aspect of the property. We suggest this process of verification through a law firm. If you are buying a house that is in the name of the current owner, then you should check the validity of his power.

3. Adequate documentation: It is your most important preparation of all legal documents are required. This documentation may include leases, registration documents, transfers of shares, property for sale, certificates of conformity assessment and certification of non settlement of all utility bills such as electricity, gas, water and sewer.

4. Mode of Payment: The best and safest way to make all payments on your new home is through the bank. In this way you will have proof of payment.

Usually, the promoter will always require the consumer to take three types of expenses:

a) tax rate: For public deed of the conditions subsequent are taxable ITP / AJD Stamp Notary mode: the amount of the tax typically 1% of the amount deferred and guaranteed (principal and interest) with condition subsequent, unless the Autonomous Community has not established any particular type, so the applicable would be 0, 5%.

Example: If you postpone € 50,000 € 2,000 of principal and interest. The amount to be paid under this heading in Madrid in 2009 is: € 5,200 (1% * € 52,000)

Little Real Estate has found that, although the promoter Treasury under obligation to pay the tax (taxpayer), it is ultimately the buyer who pays for it by covenant. Situation on the other side is not so strange to be enhanced also with the postponement

b) type of attorney: The deeds are documenting conditions subsequent documents and therefore amount accrued fees

Example: If you postpone € 50,000 € 2,000 of principal and interest. THE amount to be paid for this concept map for a dwelling would be protected from 230 € (VAT exempt)

c) type registration: Registration of a condition subsequent registration fees accrued Read the rest of this entry →

It ensures the promoter for the event that the purchaser is unable to meet part of the house price, which payment is postponed after the granting of the deed.

Is called the second mortgage because it formalizes the loan after writing mortgage credit institution financing the purchase of houses, is registered in the Land Registry even after the mortgage credit institution. It differs from the condition subsequent that, before a buyer’s default, the implementation of the second mortgage is the auction of the property while in no condition subsequent auction, but that the property becomes the property of the promoter.

Of the proceeds from the auction, first paid to the credit institution and, if left over is paid to the promoter.

Little Real Estate aware that this formula is employed on a short-term by some developers as a solution to its housing stock. From Little Real Estate doubt that such measures are sustained over time to a downward valuation of housing

The implementation is a certified notice (notarial act) by the seller (creditor) to the buyer (debtor), which manifests the will to terminate the contract, which means the return of property to the seller and perceived return to the buyer except for damages arising out of your breach. Lawyers always recommended, before notifying the resolution, require payment the seller giving a run for it and requesting explanations for the delay.

Also applies to accumulate the payment order and the resolution in a single notification whenever a term given to the buyer to catch up (SSTS 1st of February 24, 1990 and March 31, 1992, see a judiciary)

A default notice is not mandatory and can be directly notify the resolution (SSTS March 9, 1990 and December 10, 2001). If the buyer fails to pave the decision in writing will have to go to court, is not sufficient to re-enroll in the registry the property to the seller the notice of adjudication and the event of default made unilaterally by the seller.

After notification of the resolution is only the courts may require termination of the contract and can not claim pending receipt of payment

Although there are binding consultations on taxation recognizing the possibility to cancel a private document the conditions subsequent to guarantee payment of deferred price of a property (the most recent dated 28/06/2010), the Directorate General of Registries and Notaries -hereinafter DGRN-distinguishes these cases are two possibilities:

1st That in which is agreed, the deed itself with conditions precedent, the possibility to cancel for revocation of the right guaranteed under Article 82 paragraph two and five of the Mortgage Law. An example of this case is the pact that recognizes the status expired after a certain period if not stated on the record any action leading to the resolution of the sale (see, in this regard, the resolution of March 13, 1999 the DGRN)

This possibility could arise private document request to cancel ratified by both parties before the Registrar or legitimate instance notarized signatures of both parties (Art. 239 of the Mortgage Regulations). This system would avoid the accrual of cancellation Transfer Tax (Stamp Duty offer variable-rate quota of Attorney Document) Read the rest of this entry →