We consider that before buying a property it is advisable to be well informed about the process and the expenses that derive.
And answering your question of How to buy a home?
Steps to follow.
1. Choose the property you want to buy. We can not start a sales process without selecting the property that interests us, for that in the case of MIRKO Properties & Investments one of our agents will select from our portfolio of properties, those that meet your requirements, in addition to visiting them whenever you want.
2. Once the property is chosen, and realistically the negotiation phase begins, our agent will have told you the price of the house, and if you are not satisfied, we will negotiate being the intermediary between the owner and you.
3. Once the negotiation has elapsed and the price of the sale has been agreed between the Seller and you, a Private Contract will be made between them, (this contract is not mandatory, but it is always advisable because the amounts are fixed) where you must Leave a reservation as a signal. This contract is called the deposit contract (because a signal is received) although some colleagues in the sector call it a reservation contract.
4. As a general rule, the reservation will be a minimum of € 5,000 that can be increased up to 10% of the purchase price. The delivery of this signal (ARRAS) to the owner leads to the blockade of the home (it is removed from the market) and thus prevents any other buyer from buying the property or that the purchase price may vary. The private agreement (Arras Contract) contains in writing the terms of the Purchase Agreement: the agreed price, the reservation signal that has been delivered, the remaining balance, the date for signing the Public Deed and other important details. Normally the period is 6 to 8 weeks to sign the Deed, being able to be extended by means of an annex always that the two parts agree.
5. This document is a current contract between the seller and you, where both agree to carry out the Purchase. In case you do not comply with the terms of the contract, you will lose the reservation deposit; in the case of being the seller who did not fulfill the terms of the contract, he will be forced to double the reservation.
6. A Simple Note (which identifies the owner with the property, confirms that the property is free of charges, mortgages and tenants) will be attached to the Contract. In the meantime, it will be ensured that all the seller's documentation is in order and that the property is sold free of charges, mortgages, tenants and any other payment is up to date (IBI, community, garbage, water and electricity).
The next step will be at the local Notary where the seller and you will sign the Deed of Sale. Do not be afraid, our agent will accompany you during all the relevant procedures in order to facilitate the purchase process. At this time all documentation has been verified and the Notary will only ensure that the information is in accordance with Spanish law. The seller and you sign the deed mutually. At this moment the rest of the agreed price of the property is delivered and the seller must deliver the keys of the property, delivering the title of owner.
Expenses and taxes.
No matter where in the world a property is acquired, there are always expenses derived from the sale.
In Spain, as a general rule, the total expenses do not exceed 13% of the purchase price of the property.
Legal expenses; It is normally 1% of the price of the sale, plus 10% VAT.
Notary fees; fixed by law, depending on the declared value of the property, vary from € 300.- to € 900.-
Registration expenses; approximately 45% of Notary expenses.
Capital gain; is the Tax to be paid to the municipality based on the official evaluation of the Cadastre Value of the property each time a change of ownership is transmitted (that is, each time the property is sold). The amount may vary depending on the age of the previous Deed and can be confirmed at the Town Hall.
All Taxes and expenses indicated above with the exception of the Capital gain, are at the Buyer's expense.
Calculate a total of 13% of the purchase price.
We hope that all this information is useful when buying a home, the process is not simple and therefore we recommend using an intermediary. As a general rule, a person outside the sector makes a maximum of 2 real estate transactions throughout their lives. On the other hand, we, the professionals, do several of them a year, so we must keep ourselves informed all the time. Know that if you have any questions about the purchase process you can contact us by mail or by phone.