Moving into a new home or second residence is exciting. The efforts spent looking for a house and negotiating to take out a mortgage are behind us. But it doesn't end there. Besides, we must handle other procedures to avoid fiscal, legal or administrative problems.
Procedures after buying a home
The procedures after buying a home are very diverse, so it is essential to know them.
Legal and administrative procedures
These procedures follow an order:
• Notarizing the deed: The deed is necessary for many subsequent procedures. When there is a mortgage, two deeds are received: the one for the home and the one for the loan.
•Paying taxes: within 30 days of signing the deed. There are two circumstances:
◦ If we buy a second-hand home, we must pay the Property Transfer Tax (ITP). It varies between 4% and 10% of the property value, depending on the region.
◦ If we buy a brand-new home, we must pay the VAT, which is 10% except for protected housing.
• Registration in the Property Registry: This protects the property's ownership, preventing third parties from acquiring rights without consent. We need a copy of the deed, proof of payment of the ITP and the municipal capital gains tax for the registration. The cost depends on the home's value.
Registration in basic supplies
It usually can be done by phone or online.
• If the home is second-hand, we'll ask for the update of the title holder of the essential supplies (electricity, water, gas, telephone). To do this, we must provide identification of the previous and new owner, a deed or contract of sale and details of the property and the installation.
• If the home is brand new, we'll request registration and pay the corresponding fees.
Legal registration certificate
These are essential procedures after purchasing a home. To register, you must go to the Town Hall with your identity documents plus those that prove the use of the property. Registration allows you to enjoy all the public services of the municipality.
After this, it is mandatory to update your address on any official document, ID, passport, etc.
Taking out home insurance
If you have signed a mortgage, banks usually require you to have home insurance. But even if it is not mandatory, it is interesting to have it since it covers unforeseen events that may arise. It is fundamental to review coverage and insured capital. In many cases, the difference in prices is in these issues.
Additional advice
Beyond the procedures mentioned above after buying a home, there are some other recommendations to assess:
• Inspect the home thoroughly. If it is newly built, there is a ten-year insurance policy that covers defects and hidden flaws. In the case of a second-hand home, the former owner must respond within six months.
• Update the community of owners: payment of fees, registration for the use of common facilities, etc. To do this, you will have to contact the administrator.
• Change the lock as a security measure.
• Change the direct debit of bills and receipts.
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