What Documentation Is Necessary To Buy A House?
Coping with the purchase of a home can be a long and tedious process. There are many steps to follow and it is important to have the advice of a real estate professional and go to the best real estate franchises that include Tajarat properties so as not to make mistakes that could generate, in addition to a clear waste of time, of money.
Buying a house is one of the most important purchases we make in our lives, and if it is the first time there will be many doubts about it. Let’s see what the keys are and what documentation is necessary to buy a house.
The documents needed to buy a house
If you are thinking of buying a home you will have to bear in mind that there is a series of documentation necessary for the purchase to be a success. Depending on the type of property, the documentation you will need may vary:
- If the home is owned by a private individual
- The property registration number of the property and the property registry. In this way we make sure to verify who the real owners of the property are.
- Check if you have a mortgage charge. Or some other type of charge or embargo to avoid surprises once the purchase-sale contract is signed.
- Check the community fees. With the certificate of being up to date with the fees issued by the Administrator or, failing that, by the president of the Community of Owners.
- Check the Real Estate Tax (IBI). It is also necessary to verify that the seller is up to date with the IBI or the garbage rate, in the event that this tax exists in the area where the house is located.
- The energy certificate of the house. Without this document, the notary will not accept the signing of the deed of sale.
- If the property belongs to a developer, you will have to request the following documentation, depending on whether the building is finished or under construction:
- If the house is in a project or under construction, the seller must prove or provide the following:
- The availability of the land, technical project and building license.
The deed of declaration of new construction in construction and constitution of the horizontal property regime, as well as registration certification in which the participation quotas in the common elements and the statutes of the community of owners or draft statutes of the community board are recorded of owners.
Forecast of the completion and delivery deadlines of the homes once they are finished.
If we also make advance payments of the price of the house.
The perception by promoters or managers of amounts in advance on account of the price, in the sale of homes carried out before starting construction or during it, will be guaranteed by means of an insurance or guarantee that compensates the breach of the contract, in the terms established by the Law on Building Planning, which will be applied to the promotion of all kinds of housing, including those that are carried out under the regime of a community of owners or a cooperative society.
The guarantee constituted will be extended to the amounts delivered in cash or through any exchange effect, and its collection will be domiciled in the special account provided for in the aforementioned Law.
The purchase and sale contracts will state the obligation to return the amounts paid on account plus the legal interest until the effective moment of their return, for cases of non-compliance with the period of start or completion of construction works or in the case of not having obtained the occupancy license.
If applicable, the certificate of occupancy or definitive qualification, in the event that the buyer opts for the contractual resolution, without prejudice to the other legal agreements that they have agreed upon. Without being able to impose on the consumer, by way of compensation or penalty, amounts higher than those imposed on the promoter.
In the case of newly-built public housing, the documentation necessary to buy a house is included in the authorization of the administration to receive amounts on account, which will require the prior obtaining of the provisional qualification certificate and the accreditation by means of registration certification of the ownership and freedom of charges of the site, except those constituted as a guarantee for the return of qualified loans granted for the construction of the houses.
The amounts paid for the reservation of a home must also be guaranteed.
If the house we are going to buy is finished
In the purchases and sales of finished homes of a new construction or from the integral rehabilitation of the building , they must also provide in addition to the previously indicated documents, except for the advance payments during the construction period and, in addition, the following:
The guarantees for material damage are derived from construction defects and defects established in the building planning legislation.
Where appropriate, the amount of the mortgage loan corresponding to the home, its conditions and the requirements for subrogation to the buyer.
The buyer may or may not be subrogated in the promoter loan, the cancellation costs being on his account when the buyer opts for not subrogation in said loan.
The above requirements indicated in sections a) and b) must be accredited in the public deed of sale.
The Building Book, which will collect the documentation of the work carried out, as established in the building planning legislation.
The occupancy license, and in the case of newly built or rehabilitated public housing, in the first transmission, the final qualification certificate.
Something also important, when we buy a home off-plan, is to also have the following information or documentation:
- Work license. And the certification of the technician on the adequacy of the building to the license granted and to the project approved by the City Council.
- Registration in the Property Registry. You will also need the registration in the Property Registry of the building.
- Certificate from the Mercantile Registry. In this way, you can prove the existence of the company and its registration data to be more secure and calm.
- Blueprints. Both the general location and the home itself.
- Description of the property. With all possible and detailed information: useful area, general description of the building, common areas, accessory services, …
- Quality memories. Here, each and every one of the materials to be used in the construction of the property is specified in detail.
- Other documents. You will also have to have the total sale price plus VAT where everything that is included is specified (garage, storage room, …) and that the quantities delivered are guaranteed.
This is the documentation necessary to buy a house and the factors to take into account, depending on whether it is a private individual or a developer. But there is also legal documentation within the process of buying and selling a property that you will have to know and process in order to acquire your new house.
As well as the drafting of the purchase-sale contract that will be drafted with clear clauses as well as those that include All the information that we have indicated, and if it is also Public Protection, must contain the specific mandatory insertion clauses according to the regime or State Plan to which it is covered.
What are the different purchase and sale contracts?
Below we explain the different purchase-sale contracts and the necessary documentation to carry out the procedures.
Earnest money contract
It is a private document that is signed between buyer and seller on the sale of a property. In this way, the parties confirm their commitment to comply with what is agreed in the contract and are a guarantee for both the seller and the buyer. They can be confirmatory, penal, and penitential.
Confirmatory charges. There is an advance of the total price that the parties agree on in the sale contract.
Criminal charges. Unlike the confirmatory or penitential deposit, the criminal deposit is not an advance of the purchase price nor does it grant the parties the power to withdraw from the main contract.
Penitential charges. This type of deposit indicates the price that the buyer or seller must pay if they withdraw from the contract before consummating it. In other words, any of the parties can lawfully withdraw from the fulfillment of the contract as long as the agreed amount is paid.
If you need financing for the sale of your new home, there are a series of documents that you will have to have ready to carry out all the procedures. Depending on the bank, one or the other documents will be requested, but in general, these are mainly the documents necessary to apply for a mortgage:
DNI, NIF (Tax Identification Number) or NIE (Foreign Identification Number) in the case of being a foreigner.
The deposit signal contract in the event that it has already been signed.
The CIRBE. Also known as CIR, it is the Risk Information Center, in charge of providing the bank with information regarding the buyer requesting the mortgage to assess the level of risk based on a series of criteria established by the Bank of the country.
- Income tax return for the last year.
- Deeds of each real property that is owned.
- Lease contract if applicable, as well as the latest rent receipts.
- Justification of additional income if you have them.
- Receipts of the loans that we have contracted if any.
- And the latest bank statements.
Documentation if you are an employee:
- Work contract.
- The payroll for the last three months.
- Documentation required if you are self-employed:
- Annual VAT return.
- Quarterly VAT payments for the current year.
- Latest Social Security payment receipts.
- Purchase contract
Now you know all the documentation and papers necessary to buy a house. If you need professional help or any questions about any property or blue world city Islamabad, write in the comments of this post and we will respond without obligation.