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Disclaimer
Information accuracy.
Terms & Conditions.
The
information available on our web pages is supplied by the
actual owners, or their agents. As such, we are obliged to
make the following disclaimers:-
The accuracy of the information on web site www.valenciaproperty.co.uk
is the sole responsibility of the seller, or the agent, for
the property advertised.
www.valenciaproperty.co.uk does not assume any responsibility
for the accuracy of this information. The staff of www.valenciaproperty.co.uk
have not tested any apparatus, equipment, fixtures and fittings
or services and cannot verify that they are in working order
or are fit for the purpose. A buyer is advised to obtain verification
from their lawyer or surveyor. Any reference to the tenure
of a property is based on information supplied by the seller,
or their agent. We strongly advise any interested parties
to verify the information for themselves with the owner, or
their agent, before proceeding with any viewing or purchase.
www.valenciaproperty.co.uk
does not offer any guarantee, confirmation or warranty, of
the description or standard of the properties offered for
sale on our web sites, or on any printed pages.
The
staff and directors of www.valenciaproperty.co.uk, sellers
and agents do not accept any liability for any typographical
errors in the information supplied.
Any information displayed on the web pages is subject to change
without notice.
Purchase costs.
Apart from the actual cost of a property,
you need to allow approximately 10% of the purchase price
to cover for the fees and costs of acquiring the property.
This 10% will cover the solicitor's fees, translator's fees,
land registry cost, notary's charges, stamp duty and VAT.
Proffesional advice.
It is important to seek professional advice,
and to employ a solicitor (Abogado). Most lawyers will tell
you in advance what their fees will be. The standard lawyer's
fee for the purchase of a property is 1% of the purchase price
plus VAT. A small price to pay for peace of mind (using a
lawyer in your home country could double or treble the bill).
The Spanish legal system is very different from other European
countries and, to avoid misunderstandings, disappointments
and possible fraud, it is essential to seek expert professional
advice from the very beginning.
PROCESS OF BUYING A PROPERTY
The contract.
Once you've decided on a property, a contract
will have to be drafted and you need to make provisions for
the deposit. The standard deposit is 10% of the purchase price.
The deposit is payable upon signing the contract (Contrato
de Compraventa), which will include a completion date and
the transaction conditions which usually contains an assurance
by the sellers that the property is sold free of charges,
tenants and mortgages.
Once both parties have signed this contract
and the deposit has been paid, you have secured the property.
This is a binding contract for both sides with penalties for
breaking it or for failing to honour the terms of the contract.
After you have signed and paid your initial
10% deposit on the property, it is imperative to review the
important legal details. Check the receipt for the paid IBI,
the Impuestos sobre Bienes Inmuebles, the annual real estate
tax. This receipt gives the all-important Valor Catastral
the official assessed value of the property, on which your
property owner's income taxes will be based. Check with the
local town hall that the receipts have been paid. Any outstanding
balance may be requested of the vendor (this will done by
the lawyer).
Do not buy Spanish property until you have
obtained a current Nota Simple (an extract from the title)
from the Registro de la Propiedad.
PAYMENT AND SIGNING OF DEEDS
The next stage is to complete the purchase
at the Notary's office, usually, within a month or so, you
will be ready to make the final checks before signing the
"Escritura Publica de Compraventa" (title deed)
in the presence of a Spanish Notario (Notary) who certifies
that the contract is officially made, the notary does not
certify that all statements are true, only that the parties
have sworn to them.There you will be required to pay the balance
of the purchase money, taxes and Notary's fees.
NOTARY CHARGES
These are collected by the Notary for preparing
the deed and presiding over it's signing. His fee is fixed
by law, is on a set scale according to the property value,
and whether the property is mortgaged or not, is not normally
more then 1% of the purchase price including VAT.
Please note all professional fees including
the notary's and land registry's charges are subject to 16%
VAT.
PROPERTY REGISTRATION
All property in Spain should be registered
in the Registro de la Propiedad (the land registry), where
you can obtain the full details of the owner, the exact size
of the property and full details of any mortgages, debts or
judgements against the property will normally be registered.
Only the persons or company named on the Escritura Publica,
the title deed, have the right to sell the property, unless
a notarised power of attorney has been given to the third
party.
When the title deed is signed, you will automatically
become the new owner. The final step is to have the 'Escritura
Pública' registered in the Property Registry Office
as soon as possible to prevent a mortgage or other charge
being registered against the property, while it is still listed
in the name of the seller.
PROPERTY REGISTRATION FEES
Property Registration fees is charged by the
property registration office to inscribe the new deed into
your name. These are based on the official registered value
of the property. The length and complexity of the deed and
other factors are also considered. The fee does not exceed
1% of the registered value.
It is not advisable to try and do this yourself
unless you are experienced and speak Spanish fluently.
TAXES
Property Transfer tax or IVA (V.A.T.)
Which of these two taxes is levied will depend
on the type of property you are purchasing. The property transfer
tax is levied on resale properties and is charged at 7% of
the new escritura value (purchase price).
If you purchase a newly built property from
a developer you will pay a different tax called I.V.A. (V.A.T.)
is charged at 7% of the selling price plus 0.5% stamp duty.
Plus Valia (local municipal tax)
This tax is based on an officially assessed
increase in the value of the land since the last time the
property was sold. This can be quite small if purchasing an
apartment, but expensive on a villa with a large plot, which
has not changed hands for years. Find out the exact amount
from the town hall. Do not confuse this tax with the seller's
capital gains tax on his profit on the sale.
In practice "who pays what" is negotiated
with the final selling price and this must be stipulated,
as well as listing the contents/fittings to be included in
the sale, when the owner accepts your final offer (in writing).
BUYER PAYS:
In accordance with Spanish law, the buyer
is responsible for:
Transfer Tax or
(I.V.A. + stamp duty when buying from a developer)
Property Registration fees
Notary charges
THE SELLER IS RESPONSIBLE FOR:
His own capital gains tax on any increase
in escritura value
Plus valia tax
Notary fees
Selling agent fees
OUTSTANDING DEBT
If there are any debts, outstanding mortgages,
unpaid Community fees etc, then you should make sure that
these are paid directly to the debtors first, and the seller
gets the balance of his money once all other interests in
the property have been settled from the purchasers money.
The conveyancer will help you ensure that all of the various
bank certified cheques required for the different parties
are drawn up by the buyers bankers - ready to hand over at
the notary office on the day of completion.
INSURANCE
This becomes your responsibility upon possession
of the property. Normally, Spanish insurance companies offer
a split policy, whereby the property and its contents are
assessed separately. Please note that in the case of some
property owner's associations, community fees may include
cover on the building.
TERMS AND DESCRIPTIONS
Abogado--- solicitor
Actos Juridicos Documentados (AJD)----Stamp
duty
Community Administrator----Check for any outstanding
fees that need to be taken into account
Contrato de Compraventa----Contract of sale,
this is signed when the 10% deposit is paid, check 'completion
time', Escritura value, Furniture inclusion and other conditions
of the sale
Copy of Escritura----This will be certified
copy of the title deed
Cuotas de comunidad----Community service charges
Escritura Publica de Compraventa----The title
deed. This will show who the true owner/s are and define exactly
what is being purchased
Escritura value----Purchase price of the property
and content value
Hacienda----(Tax Office) Checks there are
no outstanding taxes and that previous wealth tax submissions
were made
Impuesto Sobre Transmisiones Patrimoniales
(ITP)----Property Transfer Tax
I.V.A.----VAT
Legal Definition of the property----Exactly
what is being sold - (bit embarrassing to buy a villa, and
then find the deeds don´t include the land it stands
on)
Liabilities and debts----The extent of any
borrowings or liabilities, if any, guaranteed by the property
and any outstanding debts on the property.
Nota Simple----An extract from the title,
which confirms current ownership and shows any mortgages or
embargoes on the property. Available from the land registry
Notario----The public impartial witness (Notary)
Plus Valia----Capital Gains tax on land
Registro de la Propiedad----The land registry
Town Hall----Checks that the annual Municipal
rates have been paid up to date.
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