Buying a home is so exciting! But be careful, it can come with a number of extra costs. And, if they say it's good to be grateful, then we should be thankful for the Nota Simple Registral (Property Registry Extract), because thanks to this document we can find out the legal status of a property.

Mortgages can bring surprises: unexpected charges, foreclosures, and vice versa.

If there's one thing we love in life, it's surprises. But are we sure about that? Like everything, there are always exceptions; and when it comes to buying a house: "No surprises, thank you."

To do this, we must consider concepts such as the property registry extract, which allows us to see the history of any encumbrances a property may have. The property registry extract, or any liens or encumbrances, can become those last-minute guests who show up at our party to spoil one of the most important moments of our lives.

Checking it is always the best solution.

Let's start from the beginning: the simple registry note.

Have you ever been to that point where everything seems wonderful until the single note comes along? Yes, it seems simple, but the truth is, it can become extremely complex.

The nota simple is an informative document issued by the Property Registry that allows us to know who the owner is, a description and characteristics of the property and, most importantly, mortgages and other charges affecting the property.

From the simple note to the registry certificate.

As we have seen, the purpose of the simple note is informative. Hence

There is one step towards registration certification; a big step, but a step nonetheless.

A simple land registry extract is sufficient for most real estate transactions. However, a land registry certificate has legal and evidentiary value and is used in legal and administrative proceedings.

Now, the question is, which one do you need?

In practice, in a sale or mortgage application, the simple note is usually sufficient.

Other charges that may affect your home.

They say adversity never comes alone, and there's a reason for it. So, now that we've reviewed the property registry extract and certificate, it's time to look at other situations where raising a red flag is always a good idea.

Embargoes

Seizures can result from debts to the government, legal proceedings, or non-payment. Even a small payment on a bill can lead to a property being seized.

At this point you need to be clear that, if a property is seized due to tax debts, it cannot be sold until the debts are paid off.

Easements

It is time to talk about the limitations on the use that a house or land may have, and which, on rare occasions, we are aware of.

Imagine you're having your afternoon coffee and someone knocks on your door saying they need to use part of your house? For example, a passageway, pipes, or a view.

This can happen with a right of way, as it can force you to allow access to neighbors.

Come on, you can keep that in mind, or suddenly, when you least expect it, you might have to be a great host.

Tax implications

These are legal limitations related to taxes. The most common are:

• Property tax (IBI) : This 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? It means that if there are outstanding tax debts, the property owner may be responsible for paying them until they are settled.

So, as the buyer, these costs can fall on you. However, this only happens when things aren't handled correctly.

What to do if your property has encumbrances?

Detecting a load doesn't mean the operation is impossible or inconvenient; we know that. But the truth is, with a few specific steps, you'll 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 liens:

This includes any other debt recorded against 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 as not to end up paying for something that is not your responsibility.

Practical example: buying a home with encumbrances

To understand these types of exercises, there's nothing like putting them into practice. So, we ask you to sit down and imagine you want to buy a €200,000 apartment and, suddenly, you request the property registry extract.

The document itself tells you that it has an existing mortgage of €50,000 in the seller's name, with a lien for unpaid taxes of €2,000 and with a right of way that gives your neighbors the right to use part of your garden.

It seems unbelievable, doesn't it? Well, it happens every day. In this case, we recommend:

Existing mortgage:

• Subrogation: If the bank allows it, you could take over the €50,000 mortgage under the same conditions.

• Cancellation: The seller pays the €50,000 before the sale and the property is free of this encumbrance.

• Lien: The €2,000 debt must be settled before the sale, otherwise the property cannot be legally transferred.

• Easement: It does not prevent the purchase, but you must take into account that the neighbor has a right of way, which limits the use of the garden.

As a result of all this:

• Price to be negotiated: €200,000 - €50,000 if you take over the mortgage or it is discounted if it is cancelled early.

• Additional expenses: resolve the lien (€2,000) or ensure that the seller pays it.

• Usage limitations: existing easement that does not affect the price but does affect the enjoyment of the property.

When you take out a mortgage, it's super important to have the Nota Simple (property registry extract) to have all the possible information about the mortgage.

That way, you can say "Home sweet home".