Legal paperwork for buying a home: a step-by-step guide ✅🏡✍️✅🏡✍️
Buying a house is an exciting process, but it can also be overwhelming due to the various legal formalities involved. In this article, we'll show you a step-by-step guide to all the legal aspects you need to consider when purchasing a property. Follow these steps to ensure a successful and hassle-free purchase.
1. Choose a lawyer or notary specializing in real estate
The first step in the legal process of buying and selling a house is to hire a lawyer or notary specialized in real estate. This professional will advise you throughout the process, review the documentation, negotiate with the seller and ensure that the sale is carried out in accordance with the law.
2. Review the legal status of the property
Before signing any document, it is essential to verify that the property is in order from the legal point of view. To do this, ask the seller for a simple informative note from the Land Registry. This document contains information on the ownership, surface, limits, charges and encumbrances of the property. It is also advisable to consult the Cadastre to confirm the physical description and location of the property.
3. Sign an earnest money or reservation contract
Once you have reviewed the legal situation of the property and decide to go ahead with the purchase, it is common to sign a deposit or reservation contract. In this document, both parties agree on the conditions of the purchase and sale and a deadline is established to formalize the transaction before a notary. The buyer must pay a deposit, which generally ranges between 5% and 10% of the total price of the house.
4. Apply for financing
If you need financing for the purchase of the house, it is time to apply for a mortgage loan. It is important to compare different banks and evaluate the conditions of each one before making a decision. Some factors to consider when choosing a mortgage are the interest rate, the commissions, the terms and the financing percentage.
5. Review the purchase contract 📜✍️
A crucial step in the purchase process is the review of the purchase contract. It is advisable to have your lawyer or notary review this document to make sure that all legal aspects are covered and that no clause harms your interests. The contract should include details such as:
- Identification of the parties.
- Description of the property.
- Price and form of payment.
- Date of delivery and possession of the property.
- Responsibilities of the parties for defects or hidden defects.
- Costs of the public deed and its distribution.
- Penalties for breach of contract.
6. Signing of the public deed before a notary and payment of the price
The last step in the legal process of buying a house is the signing of the public deed before a notary. This document confirms the transfer of ownership from the seller to the buyer. During the signing, the keys are handed over and the total payment of the agreed price is made, discounting the deposit paid when signing the earnest money contract.
7. Registration in the Land Registry and payment of taxes
Once the public deed has been signed, it is necessary to register the sale and purchase at the Land Registry, which guarantees your rights as the new owner. In addition, you must pay the taxes associated with the transaction, such as the Transfer Tax (in the case of second-hand homes) or the VAT and Stamp Duty (for new homes).
By following these steps and having proper legal advice, you can ensure a successful and smooth home purchase. Remember that each country and jurisdiction may have its own rules, so it is always a good idea to research the specific details before starting the buying process.
📌 Frequently Asked Questions about Legal Procedures for Buying a House
1. Is it mandatory to hire a lawyer or notary for the sale and purchase of a property?
Although it is not mandatory, it is highly recommended to have a lawyer or a real estate notary specialized in property transactions. This professional is responsible for reviewing and ensuring that all legal procedures are followed, which can help prevent future problems and misunderstandings.
2. What is the difference between the informative property report and the public deed?
The informative property report is a summary of the registered information about a property, including details such as ownership, surface area, and possible liens. On the other hand, the public deed is a legal document signed before a notary that formalizes the sale and confirms the transfer of property from the seller to the buyer.
3. What taxes need to be paid when buying a house?
The taxes to be paid in the sale and purchase of a property vary depending on the country and the type of property. In general, the Transfer Tax must be paid for second-hand properties, while for new properties, VAT (Value Added Tax) and Stamp Duty are applicable. It is important to gather specific information about the taxes in your jurisdiction.
4. What is a deposit contract (contrato de arras) and what is its purpose?
A deposit contract (contrato de arras) is a preliminary agreement before the sale and purchase transaction, in which both parties establish the conditions of the operation and set a deadline to finalize it. The buyer pays a sum of money, known as a deposit, which can be forfeited or refunded twice over if either party breaches the contract.
5. What can I do if I discover hidden defects in the property after the purchase?
If you discover hidden defects in the property that were not disclosed by the seller after the purchase, you can claim compensation or request the resolution of the contract. It is important to seek the support of a lawyer specialized in this matter and review the clauses of the sales contract related to this situation.
6. How long does the process of buying a house take?
The time required to complete the process of buying a house can vary depending on various factors, such as obtaining financing and the speed of negotiation and document signing. In general, this process can take from a few weeks to several months.
