Important points to remember when buying a secondary property from a company or bank in Spain?

When buying a secondary property, you should be aware of several aspects that will help you avoid taking high risks.

CONTENT:

• The procedure for buying secondary real estate
• Purchasing secondary housing from a company
• Purchasing secondary housing from a bank
• Advantages and disadvantages of buying a second home
• Spain-Real.Estate will help you choose a property in Spain

THE PROCEDURE FOR BUYING SECONDARY REAL ESTATE

Many people dream of buying a house which can cost much money. Buyers need to understand several important points when purchasing secondary housing.

What are the steps to purchase a secondary property?

• Prioritize.
• Get a proper assessment. The valuation determines the commercial value of the property with a technical and impartial conclusion.
• Study and analyze prices. You should pay attention to location and prices for similar properties.
• Check the age of construction and maintenance. The secondary real estate must be in good condition, not be in a risk zone, and should guarantee the accommodation of the new owner during the loan term.
• Check the legal aspects. Before buying a home, you should ensure that there are no outstanding mortgages for the property, problems with a land-use license, open arrest cases, whether it is bequeathed or has arrears, and that the bills for services are up to date.

Documents for buying secondary housing

• Identity documents from both sides.
• Marriage certificate of the seller and the buyer.
• The housing ownership or an act is registered in the public property register.

PURCHASING SECONDARY HOUSING FROM A COMPANY

Key points when buying a second home from a company:

• Make sure that the seller is a representative of the company.

The most important thing is to know who the seller is. When companies own housing, the law assigns the representation to an administrator, but authorized persons may also have representative powers.

It is better to request a charter, an appointed administrator, or a trusted person from the company. Thus, it will be possible to check whether the company has a valid office representation.

In addition, there is the option to contact the commercial register to ensure that the manager continues to hold the position.

• Check if there is an agreement between the partners to sell the apartment.

When a company sells a house considered a significant asset, all partners must agree on this issue. The confirmation is registered by various company partners who have the rights and authority to sell housing.

• Deposit agreement.

The company wants to sell something - either it doesn't need it, or it didn't succeed. In the second case, there may be problems.

The best way is to issue a sales contract with a notary. Another way is to sign a private contract and leave a receipt for the deposit amount at the notary office where the act is scheduled to be signed.

• Taxes payable.

Firstly, the buyer's rate to pay for a house is 10% if the home is new. If the property is a commercial premise or a new office, the VAT rate is 21%.

Second-hand housing will be exempt from VAT, and you will need to pay a property transfer tax (TPO).

If the buyer is an entrepreneur and has the right to a full or partial VAT deduction, they can waive this tax. If the buyer has to pay VAT, they are responsible for its payment to the Treasury.

PURCHASING SECONDARY HOUSING FROM A BANK

Secondary housing remains the most purchased type of real estate. This explains the growth in second home purchases, which has reached the highest levels yet in the last decade. There are 2 ways to purchase real estate, either directly (or through an advertising portal) by contacting the house owner to talk about selling or contacting a real estate agency. It is not always a private person behind a house’s sale advertised by an agency - it can also be banks or funds. What should the buyer take note of if they want to purchase such a property?

First, you should know that "the housing of banks, which sell them to funds and Sareb [the fund's management company obtained as a result of the bank's restructuring], are always managed by marketers,” explains Ricardo Gulias, a financial expert at Spain's leading mortgage consultant, iAhorro.

Precautions

It is necessary to check the following documents:

• a document issued by the land cadastre that details the owner of the property and possible encumbrances or restrictions on its use;
• copy of the cadastre;
• status of owners;
• energy certificate;
• residence certificate (in autonomous communities);
• ITE (technical inspection of buildings).

Ricardo Gulias points out that buying and selling an apartment owned by a bank or fund is usually "slower" than normal operations and "quite inflexible".

Guarantees

As in the case of a sales contract between individuals, "civil rules will apply to the buyer," says Ileana Izverniseanu, spokeswoman for the Organization of Consumers and Users (OCU). This means there is a possibility for compensation if hidden defects are found within 6 months. The Law on Construction Management (LOE) provides guarantees, the terms of which begin from the date of the certificate of completing the house and not from the signing of the sales contract. Thus, for used housing, the LOE law guarantees 10 years for structural failures, 3 years for defects in housing, and 1 year for finishing damages.

Through accession agreements, a bank or fund may sell dozens or hundreds of houses to other buyers. In this case, the buyer will retain the same rights.

ADVANTAGES AND DISADVANTAGES OF BUYING A SECOND HOME

The advantages of buying a second home include the following points:

1. Price. Like most assets, used houses have a differential value compared to new ones. In addition, you can buy a property with many rooms, an excellent location, and better characteristics than when investing in a new house. Keep in mind that the price per square meter is lower than the price of a new home.
2. Economy. When buying a second-hand house with a lower price, there may be capital left to allow you to modify and upgrade the property as you wish.
3. Quick possession of the rights and disposal. You can immediately dispose of the property, bringing financial assistance in renting.
4. Urbanized area. There are houses in a developed urban area with access roads, public transport, utilities, shopping centers, etc. These well-developed areas will lead to the property's capitalization and contribute to a profitable sale in the future.

Disadvantages of investing in used real estate:

1. Repair. Used housing needs repair in some spaces. It would help if you determined how much money you might need to spend on this.
2. Year of construction. You can find houses built a long time ago and have become dilapidated over time. It is necessary to analyze this issue well before investing money.
3. Study all the formalities. Before buying a home, you need to take the time to check for utility and tax debts, mortgages, or legal obstacles.
4. Beware of scammers. Many people take advantage of the ignorance of buyers when buying a used house. Therefore, contacting an expert will always be a good idea. This will bring additional costs but prevent future problems with the purchases of new real estate.

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