Home deeds (Escrituras Notariales): what they are and their importance
When buying a home there are numerous procedures that we must carry out, but one of the most important is the deed of the house. A document that is signed between buyer and seller before a notary.
The deed of the house reflects that what was agreed in the purchase contract between both parties is valid. In this way, you can prove that your property belongs to you.
Making the deeds is not mandatory, but it is an essential requirement to register in the Property Registry, and if you are going to pay for the house with a mortgage loan.
Provisions prior to notarizing a home
Before deeding a home we must carry out some procedures.
- Request a Simple Note (Nota Simple) at the Land Registry.
- It is advisable to sign a (contrato de arras) deposit contract.
- Sign the sales contract. (contrato de compraventa).
What information do the home deeds include?
- The seller and the buyer: the notary will attest to the capacity of both, to sell and to buy, and will make sure that whoever claims to be the owner, indeed, is.
- The house: it will be described, with its surface and boundaries, what part corresponds to it in the community expenses of the building, whether or not it is registered in the registry and if it is, its registry data, the cadastral reference and incorporation of the certification cadastral, if it is up to date with community expenses or if an amount is owed incorporating the certificate of the administrator in this regard, the same with the IBI, if there is any charge on it that must be paid beforehand, such as a mortgage from the seller or a However, the seller’s title, the energy efficiency of the house by providing the corresponding certificate that must be delivered to the buyer, etc.
- The price: how much is purchased and, above all, the seller’s declaration that the price has been paid at that time, unless it is postponed and in this case the terms, as well as the way in which the payment has been made , transfer, check, cash.
What happens if there is a mortgage in the operation?
If as a buyer you request a mortgage to acquire the home, the deed becomes mandatory.
The operation is carried out at the same time as the sale, and the mortgage is included in the public deed in the section on housing charges. The financial institution sends the conditions of the mortgage loan to the notary, who will review the clauses and confirm that there are none that can be considered abusive.
When after years the buyer cancels the loan, he must go to the notary again to sign the deed of cancellation of that mortgage. This will be presented in the Property Registry, where it will be recorded that the mortgage charges no longer weigh on that house.
In short, the deed will give you guarantees that you would not otherwise obtain.
As you have seen, registering the property is an advantage when buying a home. However, when buying a home, it’s not the only thing we need to look out for
if you really want to find the home of your dreams and not have headaches, it is best that you hire an expert in real estate purchases who will do all the steps for you.