Buying a home is a major milestone, and to navigate this process with confidence, it is crucial to understand the documentation involved. From inception to review of the earnest money contract, every step counts. In this guide, we break down the 10 key categories you should be aware of to ensure an informed and successful home purchase.
Property Plans
Property plans are a valuable tool for prospective homeowners. They contain detailed information about the layout and facilities of the property, being essential if renovations or repairs are planned. Examining these plans provides a clear insight into the structure of the property and helps visualize potential improvements or changes in the space.
Habitability Certificate
This document certifies that the property meets minimum conditions of habitability. Mandatory in certain autonomous communities such as Catalonia, Valencia, Navarre, Cantabria, Murcia, Balearic Islands, Extremadura, and La Rioja, obtaining or renewing the certificate of habitability requires the intervention of a qualified technician. Ensuring that the property complies with these standards is essential for a secure and comfortable purchase.
Energy Efficiency Certificate
The Energy Efficiency Certificate is a mandatory requirement for the sale of a property in Spain. This document indicates the level of energy efficiency of the property, providing information on its consumption and emissions. Ensuring to obtain this certificate not only complies with regulations but also gives buyers valuable insights into the energy performance of the home.
Last Payment Receipt of Property Tax (IBI):
The Property Tax (IBI) is a tax obligation associated with the property. Requesting the last payment receipt of the IBI from the seller allows you to verify that they are up-to-date with tax payments. In the case of acquiring the property during the fiscal year, both parties can agree on the proportion corresponding to the months the buyer will be the owner.
ITE Certificate
The Technical Inspection of Buildings (ITE) must be carried out in buildings with an age exceeding 50 years, according to the Building Regulation Law (LOE) in Spain. In some regions, such as Madrid, the required age may be reduced to 30 years, and in Catalonia to 45 years. Although not mandatory for sale, its presentation may be requested by the buyer. This certificate verifies that the building has undergone the corresponding technical inspection.
Verification of Charges
The verification of charges is a crucial step when buying a property. It involves checking for previous mortgages, pending registry charges, foreclosures, or other encumbrances that may affect the property. This process is carried out by requesting a simple note from the Property Registry, offering a comprehensive view of the financial and legal status of the property.
Last Paid Utility Bills:
Reviewing the last paid utility bills, such as electricity, water, and gas, is a crucial practice in the process of buying a home. This ensures that the current owner is solvent and avoids financial surprises related to essential services. This step provides a clear insight into the financial situation of the property in terms of essential utilities.
Community Statutes and Levies
Reviewing the statutes of the community of property owners and the approved levies provides a deep understanding of the rules and obligations governing coexistence in the building. Additionally, knowing the latest levies, their amount, and payment methods are essential for assessing the economic impact they may have on the buyer. This step contributes to an informed decision-making process.
Certificate of Being Up-to-Date with Community Expenses
Before acquiring a property in Spain, it is essential to ensure that the seller is current with community expenses. This document, requested from the community president or administrator, certifies that the current owner has no outstanding debts with the community. Having this certificate is fundamental to ensuring a smooth transition and maintaining harmonious coexistence within the community.
Earnest money contract
The earnest money contract plays a crucial role in the real estate transaction. This document details the terms and conditions agreed upon between the buyer and the seller, establishing the intention to purchase. Thoroughly reviewing this contract is essential, as it sets the foundation for the final transaction. Details such as the property description, payment conditions, and penalties for non-compliance should be clear and understandable to both parties.