You may at some point in the near future decide to buy or sell a property. If you find yourself in this situation, it is important to know the costs and taxes that are applicable for both the buying party and the seller. It is also best to know the different procedures for resale homes and new build homes.
The different costs and taxes that are levied on the purchase and sale of homes include:
Notary fees when buying a home.
Title deed costs.
The Property Transfer Tax (ITP).
The certified legal documents.
Indeed, not all these expenses are applicable. For example, VAT would only be payable if you are purchasing a new home. The ITP is designed for resale homes.
Notary fees when buying a home and title deed registration costs
The above process is necessary in all cases. Once the contracts for buying the property have been agreed and signed by both parties, they can proceed to the next level. The notary will be present at this time, but this does not mean that his work will only consist of attesting to what has happened.
Up to the time that both parties meet to sign the agreement there is a long process of work that requires great thoroughness due to the complex and delicate procedure.
By law, notaries charge a fixed fee that has been established in 1989. Since then, this amount has not been revised. The tariff is the charge for which the notary's service and preventive legal security are paid.
This means that all notaries in Spain charge the same amount for the service of writing the deeds of a house. This method ensures that everyone has at their disposal these legal services, regardless of the income they earn. In the case of an officially protected property, a reduction of the tariff is envisaged, as is the case with documents concerning public administration.
The fees charged by the notary are a small percentage of the total amount of the bill for the service, and these documented legal acts are between 1000 and 3000 €. The bulk of the amount goes to the payment of registrars, taxes and other expenses when buying a house. The notary will be responsible for paying them on behalf of their contractor.
It is the obligation of the notary to send his client a detailed invoice of all the incurred expenses and fees. In case of doubt in one or several points of the invoice you can always go to the notary office and they will review the invoice with you free of charge.
In a nutshell, the work of the notary saves time and money for the interested party who is selling the property. A summary of the main reasons for appointing a lawyer is:
- The lawyer acts as a mediator between both parties.
- They obtain highly relevant information for the contractors, besides guaranteeing their veracity.
- For each case, the lawyer specifically performs the transfer, modification and writing of the deed.
- He works as an arbitrator, helping the consensus between the interests of the individuals that demand their services. Thanks to the efficient performance of the lawyer, subsequent legal disputes are avoided.
- In solidarity with the Notarial Corporation, they are in charge of keeping the property's documents for at least 100 years without any additional cost.
- The lawyer is responsible for providing the contract in good faith and assures he will prepare it for execution. This translates into peace of mind for the notary's customers.