Legal tip 151. A guide for succesful house-buying. Part II (is TIME TO BUY)
Wednesday, September 23, 2009 @ 11:29 AM
We keep doing a review to the buying process because ... well, it seems the real estate sector, especially for the bargains chapter is having some life these days.
We celebrated my mother in law's birthday yesterday, (83 y/o) and it was for me a great joy to see that a niece (early 30s) has just purchased her first-home house and other three of his nephews (in their late 20s, early 30s) were effectively looking and finding good opportunities for a first home property to buy: one of them is having a baby in February. They were talking of very good prices: it was time for them ! I can imagine many people of their age and conditions doing the same these days in Spain.
Next September the 25th the Minister of Housing will be opening the LOW COST property exhibition in Madrid: both companies´ and individual sellers can attend.
It would be also interesting just for the sake of taking a look and testing the waters. The organisation of the event shows some accomodation suggestions, quite well priced in its website.
So… just as a reminder of the main documents to be checked when buying a house are:
1. - Horizontal division deed and statutes of the Community of owners.
2. - Land registry updated information (all loans and encumbrances will be shown there)
3. - Draft of the house
4. - Quality specifications
5. - Work License and first occupation license
6. - Last paid receipt of IBI (property taxes)
7. - Last paid receipt of the Community of owners
8. - Receipt of tax on the increase in Value of Urban Estates.
The deposit contract, ( see related article here) is for the reservation of the property out of the market and is generally an advanced payment which is then subtracted from the price to pay. It is a compromise, but not definitive. If the operation is discontinued, the deposit amount will work as a penalty. It is always more advisable to sign a deposit contract than an option to buy contract, as the deposit works better if the business is broken as a penalty.
And…. well… what can we say which is not already known regarding the 57/68 law guarantee if quantities are delivered in advance....
( to be continued...)
Maria
www.costaluzlawyers.es
See Costaluz related services here
Catalan Pyrenees by Rauxa i Seni at Flickr.com