Hi there,
In today’s post I tell you about the process of buying our vacation home after more than 2 years of searching.
Here is the first part of this story:
Here is a summary of what you should check before booking a property:
- Property registration. All houses must be in the property registry; otherwise, they are illegal and acquiring a house like this can bring you problems in the future.
- Ask the owner for all the documentation about the property and if possible, have it verified by a lawyer.
- Look for the property in the land registry.
- Call the Town Hall to see if the property has any debts.
- Ask the owner for the last 6 IBI receipts.
- Talk to the notary to see if everything is ok or if you need any more documents.
After signing the earnest money contract on March 15, we called the notary office where the owners had done the deed, and they did not have availability for April 11.
Therefore, we had to look for another notary’s office in the area and it was difficult as they did not answer the phone or said the notary would call back and never did.
Here I was reminded again of the bad manners of the Spaniards as they answered the phone and did not even say good morning.
Although we had already agreed that the payment would be made by ordinary bank transfer, Sergio, the owner who still lived in the house, told us that the notary had told him that it was better to pay by bank check because it would force the bank to send someone to do the cancellation of the mortgage at the moment.
We told him that it was impossible to have a bank check for April 11th because the only EVO BANCO office is in Madrid, and it was a great waste of time and money. Besides, we were going to have to move the date of the deed.
So, it was clear that the purchase would be made by ordinary bank transfer.
From the signing of the earnest money contract to the deed, everything went surprisingly smoothly. Unlike the purchase of our house in Porto – which was a real hell thanks to the incompetence and obscurity of the real estate agents – this time everything was between private individuals. And when both parties have good will, things flow.
The big day: April 11
We showed up at the notary’s office at 10 am. We wanted to sign early and then go to the supermarket and take the basics to the house, as we were going to spend the weekend there to start cleaning and organizing.
The process was simple. The assistant prepared the deed, the notary came for a few minutes to review and read everything, and showed us the documentation: energy certificate, land registry, records of the house, the ruin and the land. There was also the mortgage, which the sellers undertook to pay off.
In theory, we were supposed to withhold 1,500 euros from the sellers to ensure that they would cancel the mortgage. But in the end Sergio – one of the sellers – took care of everything. It was the best thing for us, because we weren’t going to be in Ourense during the week and it was one less step.
After signing, we thought it was time to pay at that moment. Nobody explained anything and after asking, they explained that we had to pay when we picked up the original. On April 22, they called us to say that the deed was ready and that we had to pay 1,113 euros. The most expensive deed we have ever paid in our life.
A practical note
After signing the deed, you have one month to pay the purchase tax. In Galicia it is 6%, which is not bad if we compare it with communities like Valencia, where it is 10%.
The post-signing formalities
The week after the signing we contacted the electricity company and the town hall of Cenlle to change the name of the water and electricity. We also contracted internet, which would be installed on April 25. All that remained was to take out the house insurance, which is compulsory – at least basic third-party coverage – and which we would do a little later.
Paying the ITP (property transfer tax) was a real odyssey. We had bought a house, a ruin and 3 plots of land (one of which had an oven that was considered urban); and besides, we were 2 owners without any legal link.
It was explained to us that we had to divide everything in half and make a model for the house and the ruin, and another model for the land. In total, 4 models and 4 different payments. A disaster.
The first day Diego spent more than 3 hours on the phone and still could not finish everything. The second day he also spent several hours on the phone to complete the forms with the help of the tax officials.
Initial expenses:
- House: 107,000 euros
- Deed: 1,113 euros
- Tax: 6,420 euros
- Home insurance: 187 euros
What comes now: clean, fix, transform. And of course, enjoy.
