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Home Charges: How to Know if The Property You Want to Buy Has Debts

Home Charges How to Know if The Property You Want to Buy Has Debts - Home Charges: How to Know if The Property You Want to Buy Has Debts

The charges of a home can be a significant burden for the buyer unaware of its existence. Therefore, knowing the possible charges and finding out if there are any is essential before buying a house. It takes little time and can save you some trouble.

What are the charges of a home?

Basically, the charges of a property are the debts that fall on it. The best known is the mortgage, but it is not the only one. Sometimes, other very different ones are unknown, but they can be of enormous relevance because the purchaser is subsidiarily responsible for them.

If their existence is known, it will be necessary to negotiate with the seller before closing the purchase process. The big problem arises when it is unknown that the home has loads.

What are the most common property charges?

The most common, those that occur most frequently are the following:

Mortgage loans: it is the most common charge. However, it causes the minimum inconvenience because, usually, the seller cancels or the buyer subrogates the mortgage.
Judicial foreclosure to face outstanding debts.
Tax payments related to the home and not paid by the seller.
Rights of easement or usufruct. The latter implies that you cannot enjoy the home even if you own it.
Rental contracts in force.
Unsatisfied tax burdens, mainly the Real Estate Tax or municipal capital gains.
Neighbourhood charges, non-payment of mandatory community expenses.
Debts on housing supplies (water, electricity, etc.).

How do you know if the home has charges?

Follow these steps to know if a property has charges:

Request a simple note or a certificate of encumbrances from the corresponding Property Registry: these documents contain the details of the home and its owner, as well as the encumbrances regarding mortgage loans, foreclosures, leases, usufruct or taxes.
• Request to the community administrator or its president for a document certifying that the property is up to date with payments or, if applicable, how much the debt amounts to.
• Ask the owner for proof of payment of the IBI or, failing that, go to the City Council to verify that there are no debts.
• Concerning the supplies, the recommendation is to consult directly with the companies.

If there is any charge, it is essential to negotiate with the seller who will assume it and under what conditions. Of course, all this must be in the contract and the deed. Another option would be to accept the debts in exchange for a reduction in the sales price.

Nevertheless, the best would be to ensure the home is free of burdens. That way, we will avoid potential unforeseen events.

If you are to buy a home, go to to find an immense real estate offer. Remember, in any case, to do a little research before purchasing the property.

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