Many people need months or even years to make a decision when buying a new building flat for sale. This due to the fact of a wide variety offered nowadays in the real-estate market and also is because it is intimidating as a first time buyer to navigate through the paperwork needed to purchase the property. That’s why, we want to help you overcome those obstacles so you can acquire your new building flat with all the confidence and knowing every moment the steps to take.
Buying process for new building flat for sale
One of the great moments in life is the purchase of a new house. You feel joy, happiness, excitement, desire to have your own home … But it is also true that, just as it is a reason for joy; It also tends to be a big headache. This usually has a close relation with the process that entails and the multiple necessary procedures. We are going to divide the process in 4 steps:
1. Define your budget. For sure, before you start to buy any of the apartments/homes for sale in your area of interest, one of the most important phases is the definition of the budget you want to allocate to make the acquisition of the house and the maximum amount that you can allocate to the purchase. Also, you will have to define in this point, the payment method of the house. The most common methods are:
– Cash payment. One off payment of the full amount of the price of the property. Normally it is done at the moment of the delivery of deeds and by bank check.
– Mortgage. Modality of payment that allows you to have the necessary amount to buy a flat for sale. In return, the buyer acquires a commitment to the bank by which he must respond with interest and even with the goods themselves. There are many types of mortgages and you can choose the one that best suits your needs.
There are other methods such as mortgage subrogation but in cases of new development homes, it is not a very common practice.
2. Once you have your mind clear about the previous point, it is time to sign and establish a buyer-seller relationship through a private contract. This is what is called a deposit contract and it is a document of the same value as the deeds of the home because it contains the rights of both the seller and the buyer. At the time of this signature, the payment of 10% of the price of the apartment for sale has to be made.
3. Deed signatures. Another key moment in the process of buying a new home. Thus, you will meet with the seller before notary to declare the will to acquire the house and all the conditions of the purchase. This document will include all the information about the house, its status, method of payment, charges or applicable taxes.
4. Taxes and expenses. At this point in the process, you must be clear about the expenses and taxes that you must pay for your new home. Normally, this type of property is subject to the following conditions:
– Value Added Tax (VAT). The houses of first transmission are subject to a VAT of 10% that you will have to pay as a buyer.
– Tax on the Increase in the Value of Urban Land (Plusvalía). This municipal tax usually corresponds to the seller, but in some cases an agreement is reached and half is paid.
Expenses. In this section, the most frequent expenses in the purchase of a new home are usually notary expenses, those derived from the inscription in the Land Registry and the expenses derived from the mortgage contracting.