Do you want to buy a house this year? You should know that it is expected that housing prices will continue to rise in 2024 due to high demand and a shortage of supply. This also implies an increase in purchase expenses that need to be considered before investing. In this article, we will explain what these expenses are, who pays them in Catalonia, which expenses are mandatory, and which are not. We’ll also provide an example calculation to make everything clear.
Who pays the expenses of buying a home?
The expenses of buying and selling are regulated in Article 531-6 of the Catalan Civil Code, which establishes the following: The costs of delivering the transmitted property are borne by the transferors. The expenses of drafting the deed and issuing the first copy, as well as other expenses after the transmission, are borne by the acquirers, unless a special provision or agreement establishes otherwise. Therefore, the buyer and seller can agree on something else, for example, to split the expenses between the two parties.Expenses of buying a home in Barcelona
Before buying a property in Barcelona, it is necessary to carry out financial planning to know exactly how much the operation will cost. In addition to the price, it is necessary to consider the following expenses:Notary Fees
The Notary participates in the purchase and sale to attest to it and to prepare the public deed of sale, which will later be registered in the Property Registry for publicity against third parties. In Spain, notary fees are regulated by the so-called Notarial Tariff, which applies throughout Spain. Notary fees for a sale, therefore, are the same everywhere, and the calculation takes into account:- The value of the property.
- The number of pages in the deed.
Property Registry Fees
The same happens with the fees of the Property Registrars: their fees are established by a tariff of a national nature. It is necessary to know that registering the property in the Property Registry is not mandatory, but it is recommended so that the buyer is considered the owner for all purposes against third parties. Also, if you are going to apply for a mortgage, the property must be registered in your name. For the registration of the sale in the Property Registry, you will need the following documentation:- Authorized copy of the deed of sale.
- Original of the settlement of the corresponding taxes (property transfer tax and documented legal acts tax or value-added tax).
Example of calculating home purchase expenses
We start with a case of buying a home (without a garage or storage room) with a price of 200,000 euros, a deed of 20 written pages, no subrogation in a mortgage loan. The notary and registry expenses would be as follows (according to the OCU calculator): Notary Fees- Home purchase: 255.39 €
- Matrix pages: 36.06 €
- Authorized copy: 30.05 €
- Simple copy: 6.01 €
- VAT: 68.78 €
- Stamp duty: 1.50 €
- Presentation entry: 6.01 €
- Home purchase: 126.04 €
- Note of fiscal affectation: 3.00 €
- VAT: 28.36 €
Other non-mandatory expenses
There are other expenses that could be waived, such as:- Fees for lawyers and managers. These are derived from the intervention of a lawyer to provide legal advice in the sale or a management office to handle tax settlement and the filing of the public deed in the Property Registry. To enable them to carry out these procedures, a funds provision is usually provided, and when they finish, they issue an invoice and return the difference if the provision made is greater than the amount of the invoice.
- Real estate agency fees. On the other hand, if a real estate agency has been involved in the operation, the party contracting its services will have to bear the cost of the fees, which will be equivalent to a percentage applied to the sale price plus VAT.
- Cheque and OMF transfer costs. It is possible that to pay the expenses of the deed of sale, you will need a bank cheque or make a transfer via the Bank of Spain. Such services have a cost that you should check beforehand to know the exact amount.
Expenses if you buy with a mortgage
In the case that you need financing to buy the property and contract a mortgage loan, you will have to face other expenses such as the following:- Property valuation. The bank must appraise the property to know its value. This operation will be carried out by an authorized appraiser and will have a cost that is usually around 500 euros. The buyer who requests the mortgage, although in some banking entities, they cover this cost, will have to bear this amount.
- Notary fees. Including the mortgage in the deed of sale will increase the costs of the Notary since they will charge an amount based on the value of the mortgage and another amount based on the number of pages in the deed.
