Buying and selling a home between private individuals
Do you need to sell a property and have questions? When buying or selling a home, it’s normal to have many questions about the procedures involved in a private transaction.
You may have questions like these: Can you buy or sell a property without a lawyer? Do you need to hire a real estate agent to sell a property? Do you have to go to a notary to finalize the sale of a home? Keep reading this article to clear up all these uncertainties.
First of all, what is the process of buying and selling a home?
The sale of a home is an agreement between two parties to transfer ownership of a specific property in exchange for a set price under certain conditions.
Once an agreement is reached between the parties, it is already considered a sales contract, as the Civil Code does not establish a specific structure. However, the practical aspects of this process are more complex, so in most cases, certain formalities must be completed.
Is it possible to buy a home without going to a notary?
The answer is yes; it is possible to complete the buying and selling process without the involvement of advisors, notaries, or real estate attorney. However, it is important to take certain precautions regarding the steps to follow.
That said, it is not advisable to buy or sell a home without going through a notary, as this is a risky decision. This is because, without the involvement of a notary, the property is not registered in the Property Registry. As a result, there is no legal owner of the home. In short, it is possible, but it is not ideal.
Step 1: Gather the required documents
Based on the information above, below we list the documents that must be submitted to the notary for the sale of a home:
Documents provided by the seller
- Title deed verifying that you are the owner.
- Identification document.
- Proof of current payments. This is typically requested from the community manager or president.
- Cadastral reference number for the property.
- Electricity Certificate.
Documents provided by the buyer
- Identification document.
- Cash, check, or proof of transfer.
Step 2: Signing the purchase agreement
Once the seller has gathered all the necessary documents and the buyer has the required funds, the next step is to schedule the appointment at the notary’s office. It is important to note that only the parties involved (the buyer and the seller) should attend the signing appointment.
However, if the buyer needs a mortgage, the bank’s representative must also attend the meeting. This is to certify that the bank assumes responsibility for the funds following the registration of the encumbrance on the property.
The third and final step in buying or selling an apartment
After signing the contract for the sale of a home, the deeds are taken to the Property Registry to be recorded. This is how the buyer will be listed as the new owner of the property.
Expenses incurred during the real estate transaction process
You’ve probably wondered who pays the costs involved in these transactions—the answer is both parties. Both the buyer and the seller are responsible for various expenses, such as:
- The seller is responsible for the capital gain; if the property has increased in value, the seller must pay tax on that gain.
- The buyer is responsible for paying the ITPO (10% tax on the purchase price of the property). The estimated deadline for this payment is 30 days. In addition, if the sale is between private individuals, the buyer must cover the notary fees.
As you can see, the process of buying or selling a home is much easier with professional guidance. So, if you have any questions—whether you’re a buyer or a seller—don’t hesitate to contact us.
