6. COMPLETE AT THE NOTARY.
On the assigned day, buyer and seller (or their authorised representatives) will attend the office of the notary to sign the "Escitura de Compraventa" (the title deed), which should state that the property is sold free of charges, mortgages and tenants. The notary does not check the terms, but solely certifies that the parties have agreed them. At this point the balance of the payment is made and possession passes to the buyer. Your lawyer will arrange payment of taxes and fees, and register your title deed at the property registry. This should be done promptly. Don't forget to have the property insured.
7. THE COSTS.
There are three fees to be paid: Lawyers fee, Notary fees and property registry fees. Also there are two taxes, transfer tax (ITP) and "Plus Valia" LAWYER FEES: usually about 1% of the purchase price plus 16% IVA. NOTARY FEES: fixed by law and normally in the range of 300 Euros - 900 Euros. REGISTRY FEES: approximately 40% of the notary fees. TRANSFER TAX: 7% of the purchase price, but when buying new from a developer this is replaced by 7% IVA plus 0.5% stamp duty. PLUS VALIA: This is a local municipal tax and is based on the officially assessed increase in the value of the land since the last time the property changed hands.
8. WHO PAYS WHAT?
It is normal practice for the buyer to pay the above fees and taxes with the possible exception of the "Plus Valia", but everything is negotiable and should be stipulated in the contracts. The vendor will pay his own capital gains tax and the estate agents fees.
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