Notary fees in Spain when buying a home
Notary fees in Spain for the purchase of a property are obligatory, as the title deed of the property itself must be registered. At Asesoría Orihuela Costa we manage all the procedures derived from the notary’s office in cases of purchase and sale of private homes.
The registration of a property in a sale and purchase
The notary has a crucial role in the purchase and sale of a house in Spain, ensuring the legality, authenticity and legal security of the process. The following are their main functions in this process:
- Verification: Before signing, the notary verifies that all documentation is in order. This includes checking the seller’s ownership, that the property is free of encumbrances and encumbrances, and that there are no legal impediments to the sale.
- Information and advice: The notary advises and informs both parties, buyer and seller, of their rights and obligations, ensuring that both parties understand the content of the contract and its consequences.
- Drafting and signing of the deed: The notary draws up the public deed of sale, which reflects the agreement between the parties. Once drafted, both parties, together with the notary, sign the deed.
- Registration: After signing, the public deed must be registered in the Land Registry. Although it is not the notary who carries out the registration, he delivers a copy of the deed so that the buyer or his manager can carry out the procedure.
- Payment of taxes: The notary also ensures that the tax obligations arising from the transaction, such as Transfer Tax, are fulfilled.
The notary guarantees the legal security, transparency and correct completion of the sale and purchase, protecting the interests of both parties.
The notary's fee for the sale of a property
The cost of notary services for the purchase of a house in Spain does not have a fixed price, as it is determined on the basis of a series of factors and is governed by a notary value established by the government. This price has a tiered structure, which means that the percentage applied decreases as the value of the transaction increases.
The main factors that influence the cost are:
- Value of the property: The higher the value of the property, the higher the notarial cost, although the percentage applied decreases as the figure increases.
- Complexity of the process: If the transaction requires additional or special actions, the cost may increase.
- Number of copies: Additional copies of the deed may incur extra charges.
Who pays the notary's fees in a sale between private individuals?
In Spain, the costs of buying and selling a house are usually distributed between buyer and seller, and custom or common practice determines who pays what. However, it is essential to review what is agreed in the purchase contract, as the parties may agree on a different distribution.
According to traditional practice in our area (Orihuela Costa , Torrevieja, Pilar de la Horadada, Alicante) the seller usually pays:
- The municipal capital gains tax (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana).
- The costs of cancellation of the mortgage, if any.
The buyer is generally responsible for:
- Notary fees related to the deed of sale.
- The costs of registration in the Land Registry.
- The Transfer Tax in Alicante (10% in the case of second-hand properties) or the VAT and the Documented Legal Act (1,5 %for new properties).
- The appraisal, in the event that it is necessary for the granting of a mortgage.
- Notary, registry and tax expenses derived from the mortgage, if a new mortgage is constituted.
Important, the law says that the seller will pay the first copy of the deed and the buyer the following copies. So if the contract says “notary fees according to law” the seller will have an additional cost.
Who pays the notary fees in Spain when signing a mortgage?
Since the entry into force of the Law regulating real estate credit contracts in June 2019 in Spain, the notary fees associated with the formalisation of a mortgage are borne by the bank and not by the customer. This legislation came to clarify and redistribute mortgage expenses, giving more protection to the consumer and establishing that the bank must bear most of the costs associated with the process.
The mortgage deed is a public notarial document that reflects the mortgage loan contract between the customer and the bank. This document is essential, as it specifies all the conditions of the loan, such as the amount borrowed, the repayment term, the interest rate, the instalments to be paid and the possible penalties for non-payment or early cancellation. In addition, the mortgage is established as a real guarantee, which means that, in the event of non-payment, the bank can initiate proceedings to repossess the property and recover the debt.
At Asesoría Orihuela Costa we work with you to evaluate the notarial contract whether you are buying a property from a private individual, or if you are going to sign a mortgage contract. Our experts in Real Estate Law will advise you, so that you can make the best decision.
