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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.