When buying a home, you must take into account the expenses generated by the process and the procedures that you must carry out to meet all the requirements. According to BBVA, these are the records and expenses that are normally incurred:
Records for property purchase
Registration of sale and mortgage
If you acquire a mortgage loan, you must jointly make a sale contract. This must be raised to a public deed and registered in the public instruments registry office.
The mortgage must be open, with no limit on the amount.
In order for the property to be accepted as collateral, it must be free of encumbrances, domain limitations, and completely healthy.
Transfer deed record
If the purchase is made through a housing leasing contract, you must make a transfer in favour of the bank. You must register this deed in the public instruments registry office and sign the lease.
Expenses that you must take into account
If you are going to buy a home through the modalities of mortgage credit and/or housing leasing, you must remember that this implies a series of expenses that you must take into account:
– Appraisal of the property.
– Study of titles and elaboration of the minute.
– Notarial charges.
– Benefit rights.
Here we expand the information about each of them:
It is required to determine the commercial value of the property and the fair price that must be paid for it, based on technically established factors. The bank’s commercial advisor will inform you of the amount to be paid for this service. Keep in mind that to carry out this activity, you must pay the corresponding fees in advance.
Study of titles and minutes:
They correspond to the fees paid to the external lawyers assigned by the bank in order to carry out the corresponding study and know the favorability of the property, to determine whether or not it is an admissible guarantee for the bank. If the concept is favourable, the minutes of sale and mortgage and/or transfer minutes are prepared for sending to the notary.
For this purpose, you must provide at least the following documents:
– Promise of sale.
– Certificate of tradition and freedom of the property, with an issue date of no more than 30 days.
– Copy of the property’s traditional deeds of the last 10 years.
Notary, charity and registration expenses:
By the day the deed is signed, you must have made a provision for these expenses. The financial institution’s advisor will do a simulation and report the approximate value for each of the parties.
These rates are established by the Superintendence of Notaries and Registry.
Both the buyer and the seller will assume the notarial expenses in equal parts.
The seller must pay 1 percent for Withholding at Source on the value of the act.
These values are cancelled at the notary at the time of signing the deed.
This is a departmental tax for writing.
In this case, the buyer must pay a percentage of the sale value of the property. In some cities, there are additional taxes that will be assumed as agreed by the parties.
Corresponds to the registration of the act before the Office of the Registry of Public Instruments.
The registration of the deed corresponding to 1.67% of the sale value is cancelled, this must be paid by the buyer of the property.
In summary, for the sale of the property, the buyer in total must pay 1.94% of the value acquired, and the seller must pay a total of 1.27% of the value for which he sold the said property.