How exciting it is to buy a home! But be careful, it can come with a series of extra charges. And, if they say it's good to be grateful, it doesn't hurt to give thanks for the Nota Simple Registral, because thanks to this document we can know the legal situation of a property.
Mortgages give you surprises: unexpected charges, foreclosures and vice versa.
If there's one thing we like in life, it's surprises. But are we sure of that? Like everything, there are always exceptions; and when we're going to buy a house: "No surprises, thanks."
To do this, we must take into account concepts such as the simple note, which allows us to see the history of overloads that a home may have. The simple note or embargoes, can become those last-minute guests that appear at our party to spoil one of the most important moments of our lives.
Checking it out is always the best solution.
Let's start at the beginning: the simple registration note.
Have you ever been through that point where everything seems wonderful until the single note appears? Yes, it seems simple, but the truth is that it can become something extremely complex.
The simple note is an informative document issued by the Property Registry that allows us to know who the owner is, the description and characteristics of the property and, most importantly, mortgages and other charges that affect the home.
From the simple note to the registration certification.
As we have seen, the character of the simple note is informative. That is why
In the registration certification, there is a step; a big one, but a step.
The simple note is sufficient to carry out most real estate transactions. On the other hand, the registry certification has legal and probative value, and is used in legal and administrative processes.
Now, the question is which one do you need?
In practice, in a purchase or mortgage application, a simple note is usually sufficient.
Other charges that may affect your home.
If they say that adversity never comes alone, it's for a reason. So, since we've reviewed the simple note and the registration certification, now it's the turn of other situations in which a red flag never hurts.
Embargoes
Seizures can arise from debts with the Administration, legal proceedings or non-payments. Even if it is a minimum payment of a bill, a property can enter the seizure process.
At this point you must be clear that, if a home is seized due to tax debts, it cannot be sold until the debts are cancelled.
Easements
It's time to talk about the limitations on use that a home or land may have and that we are rarely aware of.
Can you imagine having your afternoon coffee and someone knocking on your door saying they need to use a part of your house? For example, a step, pipes or views.
This can happen with easements, as they may require you to allow access to neighbors.
Wow, you can already take it into account or, suddenly, when you least expect it, you have to be a great host.
Fiscal conditions
These are legal limitations related to taxes. The most common are:
- Property tax (IBI) : it is the tax paid by the owner of a home.
- Property Transfer Tax (ITP) : paid when buying a second-hand home.
What does this mean? If there are outstanding tax debts, the homeowner may be responsible for paying them until they are canceled.
Wow, as a buyer they can fall on you. Of course, this happens when it is not managed correctly.
What to do if your home has loads?
Detecting a load does not mean that the operation is impossible, that it is not comfortable, we know that; but the truth is that, with some specific steps, you will be able to manage it correctly.
Existing mortgage:
If the house has a mortgage in the seller's name:
- Subrogation: If the bank allows it and accepts the conditions, the buyer can assume the existing mortgage.
- Cancellation: The seller settles the debt before or during the sale, so that the property is free of debt.
Other encumbrances or conditions:
This includes any other debt recorded on the property.
- Investigate where the debt comes from.
- Evaluate whether it can be canceled before the sale or included in the price negotiation
- It is important to have legal advice so that you don't end up paying for something that doesn't belong to you.
Practical example: buying a home with encumbrances
To understand this type of exercise, there's nothing like putting it into practice. That's why we ask you to sit down and imagine that you want to buy a flat for €200,000 and, suddenly, you request the simple registration note.
The document itself tells you that you have an existing mortgage of €50,000 in the seller's name, with a tax lien of €2,000 and with an easement that gives your neighbors the right to use part of your garden.
What does lying look like? Well, it's something that happens every day. In this case, we recommend:
Existing mortgage:
- Subrogation: If the bank allows it, you could take on the €50,000 mortgage under the same conditions.
- Cancellation: The seller pays the €50,000 before the sale and the home is free of this charge.
Embargo:
The €2,000 debt must be settled before the sale, otherwise the property could not be legally transferred.
Servitude:
It does not prevent the purchase, but you must take into account that the neighbor has the right of way, which limits the use of the garden.
As a result of all this:
- Price to negotiate: €200,000 – €50,000 if you assume the mortgage or it is discounted if it is canceled earlier.
- Additional expenses: resolve the seizure (€2,000) or ensure that the seller pays it.
- Use limitations: current easement that does not affect the price but does affect the enjoyment of the property.
When you take out a mortgage, it is super important that you have the Nota Simple to have all the possible information about the mortgage.
So, you can say this about “Home, sweet home”.
