If you are considering buying an apartment or a house, you will have informed yourself about the different steps you must follow. One of the most important is to deed the property, an administrative procedure, mandatory to apply for a mortgage and necessary to register the property in the Property Registry.
The ownership of a home is not unalterable. With the passage of time, circumstances may arise that force us to modify it, such as inheritances, donations, divorces, if we want to include or eliminate a holder of the same or when the property is partially or totally sold.
Here we tell you everything you need to know about how to change the deeds of a house: where to go, what to do and how much it costs.
What is the use of changing the name of a house deed?
The deed or public deeds of the house indicate who is the owner / s of a home. This document is official and must be ratified by a notary in order to be presented at the Land Registry.
Registering a house in the Property Registry is not always essential. In fact, it is possible to buy a house or inherit it without changing the deeds and thus save the associated expenses.
However, this procedure is mandatory if you ask for a mortgage with Sky Marketing. In addition, both in the case of sale and inheritance, changing the name of the deed and registering it is highly recommended, especially since it represents a legal guarantee.
From a legal point of view, the title deed guarantees that you are the owner of the house, as well as the rights you have over it. On the other hand, the deed presented by the seller confirms that the home is really his, which protects you against possible scams.
In the same way, by changing the name of the house deed and acquiring its ownership, you will be protecting your property from possible creditors (if the previous owner had debts prior to the purchase), and you will know if the house has any pending charges or payments.
Finally, the deed of a house speeds up the process of transferring the property. If in the future you want to sell the home and it is not notarized in your name, it will be difficult to prove your ownership and you could have problems completing the transaction.
What information must appear in the public deed of the house?
- Faithfulness, or what is the same, the express manifestation of both parties (seller and buyer) to transfer the property.
- Burdens on the home (taxes, mortgages, etc.)
- Proof of payment of the IBI and fees of the Community of Owners.
- Legal provisions derived from the sale.
- Distribution of operation expenses.
- Liquidation of notarial expenses .
- Verification of the means of payment.
- Cadastral reference number and change of ownership.
In addition, during the signing of this document, the seller must provide or inform the buyer about:
- Whether or not the home is free of occupants and leases (if not, the situation should be indicated to the buyer).
- Possible hidden defects of the property.
- Pending payments related to municipal capital gains or income tax returns.
- Energy efficiency certificate (CEE) and current habitability certificate.
How much does it cost to change the deed of a house?
To calculate how much it costs to change the deed of a house, we must add several expenses, including the Notary and Registry, in addition to taxes such as the municipal capital gain (the Municipal Tax on the Increase in the Value of the Land, which must be paid by the seller of the property) or personal income tax.
Some owners, before the sale, also sign a private pre- contract or deposit contract to give security and continuity to the operation.
Notary and Property Registry Expenses
Notary fees for changing the name of a house deed are between € 600 and € 900), and depend on both the type of real estate (house, flat, chalet, etc.), as well as whether or not it is registered, as well. as of the value of it in the scriptures.
Notary fees for this transaction are the same throughout Spain and are set out in Royal Decree 1426/89, with a maximum discount of 10%. Your payment must be divided between the different owners of the property (if any), and may vary depending on the amount and type of copies of the deed that we request (authorized copies or simple copies).
Taxes (VAT, Property Transaction Tax and Donation Tax)
When calculating how much it costs to change the deed of a house, you must also add, to the expenses of the Notary and Registry, some taxes that will depend on the type of transaction, as we explain below:
If you want to register a new apartment or house, you must pay VAT (10%, except in VPO homes, which is 4%).
Second hand housing
If you are going to buy a second-hand apartment or house, you will have to pay the Property Transaction Tax (ITP), which ranges between 4% and 10% depending on the Autonomous Community.
To change the name of a second-hand property, you must also cover the income tax percentage of the difference between the purchase and sale value.
Donations and inheritances
If you have received a donation or inherited an apartment, you must pay the Inheritance and Donations Tax (ISD) and the Documented Legal Acts (AJD). The ISD is calculated on the value of the property as a whole and varies according to the Autonomous Community. Normally, it is 8% of the value of the house, although if the price of the house is high, it can increase.
In the case of donations, the amount of changing the name of the house deed may vary depending on the degree of kinship: it is not the same as a property passed from parents and children or to a spouse, which is added to a sentimental partner or a person without family ties.
How to change the deeds of a house
Changes in the name of ownership of a property are always made in the Property Registry, which is where the home must be registered.
Changing the deeds of a house will not be the same if you are the sole owner of the house or if there are more people involved in the operation. In the first case, you will have full right to make the change of ownership; in the second, you must speak with the rest of the owners so that they authorize it.
In the case of donations, you must go to the Notary to obtain the new deeds with the donation transmission. In inheritances, it is necessary to make a letter of acceptance of inheritance at the Notary’s Office and go with this document first to the Tajarat properties and then to the Property Registry.
Renaming a house deed is a process that can be complicated. That is why it is convenient to have a professional advisor to advise you on the best way to do it.
In our blog you will find more information about how much it costs to change a name apartment that may be useful to you.