I have put my house up for sale and I have a potential buyer interested, but what do I have to do? What expenses do I have to assume as the selling party?
Here we explain 5 simple steps to be able to sell the property without any problems.
1- Sign a purchase contract or earnest money contract, where all the clauses and terms of the sale are agreed, from the price of the property, how the notary and estate agent’s fees are to be paid, the inventory, the date of signing, etc. The payment of a deposit is normally established, in accordance with article 1454 of our civil code, which protects both parties. If you have any doubts about your contract, consult your lawyer so that you are protected against any situation before taking the next step.
2- Documentation of the property.
Although we are the ones selling the property, we must provide certain documentation to the buyer. These documents are:
a. -Energy certificate, since 2014 it is mandatory to deliver it, in force, to the buyer. It is a document whose price is around 100-120 euros plus administrative fees.
b. The corresponding certificate of the community must also be handed over, as proof that nothing is owed to the property administrator, and the cost of which can be around 25-30 euros,
c. Registration data, that is to say, the details of the property we are selling, so that the buyer can obtain all the details of the property.
d. It is also usual to hand over the last IBI paid, as well as the utility bills. It is not compulsory, but it does make it easier for the buyer to check the property, as well as subsequent changes of ownership.
3- Possible cancellation of mortgage/undeclared works – In case of having a mortgage, it must be cancelled economically with the bank, unless the buyer is interested in a subrogation. The same applies to undeclared works, e.g. a swimming pool. It is usual to include it in the new deed of sale, although by law we are not obliged to do so.
4- Taxes – as a non-resident seller, it is important to bear in mind that apart from paying the estate agent’s commission, if there is one involved, two taxes must be paid: one the municipal capital gains tax to the corresponding Town Hall and two the 3% non-resident income tax to the Tax Office.
5- Handing over the keys and cheque. On signing the sale and purchase before a notary, the keys to the property will be handed over to the buyer and the seller will receive a nominative bank cheque for the amount of the sale and purchase.
In any case we always recommend, before signing any type of contract, to talk to your lawyer, who will be able to check the documentation, advise you and, above all, find the most beneficial way to avoid paying unnecessary taxes or even claiming a refund. Don’t forget, Imont Legal Services is here to help you.