Notary functions and expenses in a sale and purchase
Table of Contents (9)
- Who pays the Notary in a sale?
- Notarial fees for the purchase and sale of housing
- What does a Notary do in a sale and purchase?
- Step 1: Obtain the necessary documentation and verification
- Step 2: Minutes and signatures
- Other expenses in property sales
- Registration fees for purchase and sale
- Expenses for purchase and sale taxes
- Management expenses for tax settlement, purchase and verification of registration
When going to sign a property sale at a notary's office for a house or any other property, the Notary will have to carry out a series of procedures to ensure that the property being purchased meets all legal requirements. Today we will talk about the functions of the Notary in property sales and the related sale expenses.
Who pays the Notary in a sale?
As a starting point, it is important to know that the choice of Notary in a sale deed is a right of the buyer, since it is essential for the buyer that the property is free of encumbrances, has all the correct documentation, and to avoid problems after paying the purchase price.
Since the buyer chooses the Notary, the sale expenses at notaries in Catalonia must be paid by the buyer. In the rest of Spain, it is also very common for it to be agreed that the buyer is responsible for paying all the deed expenses.
Notarial fees for the purchase and sale of housing
The price of the sales contract is set by law in the notarial tariff of Spain, so the deed must have the same amount in all notaries. However, the price depends on many criteria such as the sale price itself, how many documents need to be incorporated into the deed, or how many copies need to be printed and sent. Therefore, the estimate for this document must be personalised for each specific case.
You can follow this link to learn more about notarial expenses related to the figure of the Notary.
At JLA Notarios we can sign sales of properties located anywhere in Spain, provided that the sales signing takes place at our notary office on Avenida Diagonal in Barcelona.
Therefore, if this is your case and you want to sign a sales deed in Barcelona, you can write to us at bcn@jlanotarios.com and we will provide you with a personalised estimate for your specific case.
What does a Notary do in a sale and purchase?
It is important that the buyer exercises their right to choose a Notary before signing the deed because the notary will perform important functions.
Step 1: Obtain the necessary documentation and verification
The functions that notaries perform in a sale are varied and include, among others:
- Review of the Public Insolvency Register to verify that the sellers are not in bankruptcy proceedings.
- Obtaining registry information to ensure that the property has no legal encumbrances.
- Verification of cadastral information and reference values of the properties to avoid tax issues.
- Checking that the property being purchased is up to date with payment of the IBI (property tax) and the homeowners' association fees.
- Verification that there is an energy efficiency certificate.
- In the case of a home sale, it is also checked that there is a habitation certificate.
All these steps serve to guarantee that the property is indeed available to be transferred from one owner to another and to confirm that the seller is truly the owner of the property.
Step 2: Minutes and signatures
The functions that notaries perform in a sale are varied and include, among others:
- Execution of the deposit contract: Within the role of the Notary in the sale is the drafting, assistance or review of this agreement. The deposit contract can be signed before a notary.
- The Notary gathers all the necessary information and documentation for the sale (ID of the buyer and seller, sale price, payment method, energy certificate, etc.). They compile all the information about the property owner and any possible encumbrances. Additionally, they may request other information, such as certificates proving that the owner is up to date with the community fees or the accreditation of the property's cadastral reference.
- Subsequently, the drafting of the sale deed takes place, which is sent to all parties for review.
- Advice on the pre-mortgage signing certificate: The mortgage pre-contract will be reviewed to confirm that everything is in order. The client has 10 days to visit the Notary if they need to resolve any doubts. These processes help to advise and inform both the seller and the buyer so that they understand and agree with all the clauses of the contract and the property deed. It is important to ensure that both fully understand these documents.
- Signing of the sale contract and the mortgage loan before the Notary: The Notary reads the deed and the mortgage loan to verify that both parties agree. Afterwards, the contracts are signed, the agreed payment amount is made, and the keys are handed over.
For more information about mortgage costs, you can read this article:
- Delivery of the deed: After completing the registration process of the purchase in the Land Registry, the Notary is the one who hands over the notarial documentation to the buyer.
In addition to these functions before signing the sales contract, the notary performs several tasks, such as communication with the Land Registry or the correct alteration of the cadastral ownership.
Other expenses in property sales
In addition to the Notary fees in a sale, other expenses must be taken into account such as:
Registration fees for purchase and sale
Properties must be registered in the Property Registry and the buyer must bear the registration costs of the sale. These costs are also set by law and depend on variables such as the sale price or the number of buyers.
Expenses for purchase and sale taxes
When purchasing a property, you have to pay the ITP (Property Transfer Tax). It is a tax with different rates in each Autonomous Community. In Catalonia, the general rate is 10% of the purchase price. There are some tax benefits that reduce the percentage, such as, for example, when buying a main residence if you are 32 years old or younger and do not declare more than 30,000 euros annually on your IRPF.
In this other article, you can find out the general ITP percentage that must be paid in each Autonomous Community, as well as the taxes generally applied in the purchase of a house or other property:
Management expenses for tax settlement, purchase and verification of registration
For the payment of taxes in the sale, it is usual to hire a professional. If the sale is accompanied by a mortgage, the management will be designated by the bank. If the sale is without a mortgage, the buyer can choose the management office or notary that will process the taxes. Some notaries offer the tax settlement service in the sale and others do not. At JLA Notarios we do settle the taxes in sales because we understand that it is important to provide a comprehensive service in its management.
At JLA Notarios – Notary in Barcelona we specialise in the processing of sales and one of the questions we most frequently encounter when preparing property purchases is about what the functions and Notary fees in a property sale are for a house or other property.
We hope this post has been interesting and adds value. If you need a deed to buy or sell a house, the entire team at JLA Notarios is at your disposal. You can contact us by phone, by email writing to bcn@jlanotarios.com or through our contact form. We will be delighted to welcome you to our Notary on Avenida Diagonal in Barcelona.
