Frequently Asked Questions about buying and selling a house

Questions related to the sale of a home

The sale price of a property depends mainly on the market, that is, on what the potential buyer is willing to pay. If you want to know the best price for which you can sell your house, get in touch with us. To make the best appraisal of your home, we will look for properties similar to yours in your area, not only properties currently for sale but also based on data from closed operations in recent months. All these data together with the assessment of the characteristics of your home and the state of conservation, will allow us to determine the best sale price.

The sale time of a property varies depending on different factors, the more expensive and exclusive a home is, the number of potential buyers is reduced, which results in a longer sale time. It is also essential that the sale price is appropriate, according to the market, otherwise the sale may take excessively long time or even become practically unfeasible. Usually our average sale time for a property is between 3 and 5 months.

It depends on each Autonomous Community, in the case of Madrid it would be necessary to have the following documents:

  • Copy of the Purchase Deed (Property Title), simple note from the Property Registry.
  • A power of attorney if the house belongs to a Company or to another natural person.
  • Identity Document (ID Card) of the holders or proxies.
  • Last receipt of the Real Estate Tax (IBI) and other municipal rates such as the garbage rate.
  • Certificate of mortgage debt pending with the corresponding bank or, failing that, debt certificate 0 issued by the entity that mortgaged the house for the corresponding charge cancellation in the Property Registry.
  • Energy efficiency certificate.
  • Certificate of being up-to-date with the payment of community expenses issued by the Administrator in the month of the date set for the purchase-sale (in case of belonging to a neighborhood community).

We also recommend providing the latest bills for electricity, water, etc., for the change of ownership. It is also recommended if the home belongs to a community of owners, provide a certificate of approved and pending spills, as well as the statutes and regulations of the community.

Yes, the energy certificate is mandatory in Spain from June 1, 2013 to sell a house. The obligation to show the energy certificate is regulated in Spain by Royal Decree 235/2013. Selling or renting without having an energy certificate is an infringement and is sanctioned with fines ranging between 300 and 6,000 euros. Law 8/2013, of June 26, establishes the sanctions for non-compliance with the energy certification regulations. In case you do not have an energy certificate, we will be happy to help you process it, it usually takes less than 3 days to obtain it from the moment it is requested.

Natural or legal persons who want to sell a property in the Community of Madrid must pay the following taxes:

  • Personal Income Tax (IRPF) as a capital gain or loss that must be reflected in the income statement for the year in which it was sold. The general criterion for treating the increase in assets has some exceptions. When the sale is of the habitual residence, this capital increase may be exempt in the event that the amount received is used for the purchase of another habitual residence within a period of two years. To do this, you must include it in the income statement and take advantage of the exemption for reinvestment. It is also exempt when the seller is over 65 years old.
  • Corporation Tax when it is a legal person.
  • Income Tax for Non-Resident Individuals (IRPFNR) as capital gains or losses in the event that their tax residence is abroad.

Unless previously decided otherwise by the parties, the cost of the public deed is usually assumed by the seller, and the cost of the first copy and other post-sale expenses, by the buyer. The registration costs in the Property Registry are borne by the buyer.

If the sale is signed on or after January 2, the payment of the IBI and other municipal taxes associated with the property are the responsibility of the seller because he is the owner of the house at the beginning of the year.

The buyer must receive the house free of charges, so if you have an active mortgage, you must pay the associated mortgage cancellation and notary fees. It could also happen that the mortgage is amortized, but not registered, in this case you must carry out this process before closing the sale.

You will not have to worry about anything, our team will be in charge of showing the house to potential interested parties, we know their profile and we know what they are interested in and what should be highlighted. Previously we will contact you to agree on what time is best for you.

As soon as we receive an offer, we will contact you immediately and inform you of all the details.

An deposit contract is a private document between the buying party and the selling party, in which a firm purchase commitment is generated. Different aspects will be reflected in it, among the most important; The property and its condition are identified, the final price is established, the form of payment, the scheduled date for the purchase-sale signature with a public notary, how the costs of the operation are distributed and an amount of money is delivered to the buyer as a guarantee (the earnest money), usually 10% of the value of the property.

Although there are different types of earnest money contracts, generally in case of default the penalties are similar:

  • If the buyer breaches his commitment to acquire the property, he will lose the amount contributed as a deposit or signal.
  • If it is the seller who fails to fulfill his commitment to sell on the scheduled dates, he will return the amount of the deposit to the buyer in duplicate.

The date for the delivery of the keys is usually the day of the sale with the public notary, this is stipulated in the deposit contract. However, if you need a few additional days to move, you can try to agree with the buyer, but it would be his right to refuse and want to enter his new house as soon as possible. This agreement, if it occurs, is customary to be included both in the deposit contract and in the property deed, through a clause that specifies that the seller will stay a few additional days in the house, setting a maximum term to leave the property.

Our team will always be by your side to advise you in all the steps of the sale. In case you need it, we can recommend a trusted lawyer or notary and accompany you if you wish.

We only charge our fees if we can sell your house, otherwise you would not have to pay us anything. The fees are paid 50% at the time of signing the deposit contract and the other 50% at the time of signing the contract of sale.

Questions related to buying a house

No, the commission is paid only by the seller. There is only one case in which we charge a commission to the buyer and it is when we are acting for you as a real estate personal shopper, in case you wish to receive this service we will sign a contract and take care of finding the ideal house for you, based on the requirements that you have transmitted to us.

In case the house you are looking for is not among the properties that we offer exclusively or in a shared way with other agencies, we can help you find your ideal house, based on the wishes and characteristics that you transmit to us.

Our work will begin with the search and visit of the properties to present you only the ones that really fit your requirements. We will also check that the property is in perfect condition and free of charges, we will negotiate the price of the property on your behalf, we will accompany you to the signing of the deed and we will even advise you on the procedures after the purchase.

The visit sheet is a document that records the visit of a person to a property on a certain day at an hour. Its function is to serve as a control to know who is visiting the property and to recognize the intervention of Ketier in the real estate transaction. Signing the visit sheet does not commit you to anything and if you buy the property you will not have to pay us any commission for it.

When buying a home you should consider a series of additional expenses related to taxes, these vary in the case that the property is new or second-hand:

  • New construction, you will have to pay the amount of VAT, which is currently 10% on the price of the house, you will pay it at the time of signing the purchase contract with the developer and it will be this who is in charge of liquidating it with the management. You will also have to pay the Tax on Documented Legal Acts (IAJD), which currently in Madrid is 0.75% of the value of the property.
  • Second hand, in this case the most important tax is the Tax on Patrimonial Transmissions (ITP). In the Community of Madrid the amount is 6% of the notarized value, although there may be discounts for large families (as long as it is a habitual residence) that reduce this tax to 4% in our community. Likewise, the Tax on Documented Legal Acts (IAJD) must be paid within 30 days after the signing of the deeds.

There are other expenses that you should take into account when buying a home such as the notary’s office and the registration in the Property Registry, in the case of signing a mortgage there will also be other associated costs.

We are not dedicated to this, but like any other service related to the sale of homes, we can recommend banks that offer good financing conditions.

Although it is not mandatory in Spain, it is the most recommended, since it offers legal protection, automatically allows the change of ownership in the cadastre and is essential to apply for a mortgage. It also has other benefits such as being able to obtain a copy of the deed of your home in case of loss. The cost will depend on the value of the property.

The usual thing is to agree with the seller on the intervening notary. In the absence of an agreement, the party who is obliged to pay the majority of the notary’s fees is the one who has the right to choose and this is usually the home buyer.

The keys are usually handed over at the time of the public deed, unless an agreement has been previously reached with the seller, in case the seller needs a few additional days to make the move. In that case, it is usual for this agreement to be included in the deposit contract and in the property deed.

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