How to buy property: Steps to follow to buy a home
At Chris Arnold real estate, we bring you a series of tips on how to buy property. It is important to take into account all the factors, both positive and negative, that will intervene in the purchase process from the first procedures until the signature before a notary.
It is important to know in depth the rights of the buyer, the types of contract that are offered at their choice when buy property in Newcastle and all the taxes and legal procedures that are subject to the value of the property.
In addition, understanding what the deposit contract is, as well as its importance in the purchase process, can save us a lot of unforeseen events that can delay the transaction.
Home buyer rights
First of all, it is necessary to highlight an idea, absolutely relevant, in all purchases. The main idea is that everything is pactable, always within the law, and that therefore in this article we will highlight or advise on the mandatory, the ideal, the desirable, and so on.
Let us be very clear that certain deviations may or may not be accepted regarding the rights and duties of the contracting parties, depending on the interest, cost, etc.
We proceed to indicate the basic points, in this case, of the buyer’s rights:
1. Total information on the real situation of the house, both for legal and real purposes. This is as simple as requesting the registry note. You will give us the following information:
- Description and exact location of the property. Current owners and situation of the property in terms of possession (pending inheritance, etc.) Current urban situation and origin (for example VPO).
- Real measurements, or at least those that appear in writing.
- Age of the property, with which we can know whether or not it requires a technical inspection of buildings.
- Charges of any type, from mortgages to judicial seizures, or any type of obligation of easements given, or urban planning charges noted and / or pending.
2. The buyer must demand to know how much the annual receipt of the Real Estate Tax (IBI) amounts.
3. You must also be informed of the community fees to pay, as well as the pending spills, if any. For this purpose, it is necessary to request the last two minutes of the community to know the community work already done and pending payment, or those approved at the meeting and still to be carried out.
4. You must demand to see the certificate of occupancy and the energy certificate, or at least the process if requested.
5. It is advisable to know the outstanding balance of the mortgage, if any, and the conditions of the same to study the possibility of subrogation.
6. It is advisable, in all cases, without exception, to make an inquiry to the City Council of the city or town where the property is located. It is relatively frequent that there are actions approved in municipal session and they are not reflected in the Registry Note.
It does not mean that they should be negative. You may have approved a road that favors communication and therefore improves the price of the property. In the same way, certain actions could have been approved that end up cutting rights (sometimes appropriable) that reduce the price or interest for the purchase.
Here the inexorable law number 1 of the economy has the predominant role: Supply and Demand.
The owner of the property estimates a price, which is usually somewhat above the real price, and the buyer must find out about the real market price and make his offer accordingly. However, the first part of this writing essentially reads here. The final price that is agreed will always depend on subjective factors, such as:
- Hurry to buy property or sell.
- Particular interest in that property for any circumstance.
- Strategic situation for the buyer.
- State of conservation that adapts to the taste of the buyer.
- Financial / fiscal issues that deviate from the forecast.
And a long etcetera that will close the operation at the convenience of both parties.
Apart from the market price, which according to the parties will be different, it is best to take advantage of an appraisal through the college of appraisers or the Apis association. It is a very cheap cost and the result is realistic, at least to a large extent.
The buyer must seek a neutral, real and commercial offer before deciding to buy property. They should not be ordered through a bank because they always suffer from the same problem. The appraisal is always with restrictive criteria because the mortgage depends on it. Probably, in most cases, the bank is bound by “its appraisal”.
It is important to take into account the possible expenses derived from the sale of a first and second-hand property when launching into the acquisition of a home.
Housing deposit contract
The deposit contract, or penitential deposit usually, is the equivalent of a down payment, where all the conditions to be fulfilled before the writing, and essentially the date of the same, are set.
It is important to know that the deposit contract is not a contract of sale nor can it be equated to it. In addition, it is always subject to art. 1454 of the Civil Code that clearly specifies that it can be undone in certain cases.
Types of home purchase contract
Sales contracts can be public or private. The private ones are between the parties, without the intervention of the public notary; the publics are what we call writing:
Private sale contracts:
They are made between the parties, contemplating all the details of the operation. They have the big problem that they cannot register, unless they are raised to the public. In that case, it has the value of a deed and therefore must be registered, to record the new owner and for protection against third parties.
Public contracts of sale:
It is what we understand by public deed. It is always before a notary public (notary).
We must state that if the operation is with a mortgage granted, the sale in writing and the subsequent registration in the property registry will be required. No bank can grant a mortgage on a private sale.
It is important to note that in any type of contract, private and public, we can include the agreed clauses, however complicated they may be, as long as they are not against the law. Prices, terms, review clauses, forms of payment, etc., are common, especially in large operations.
Might as well interested on reading about: How to Waterproof a Bathroom!