What is the use of changing the name of a house deed?
The deed or public deeds of the house indicate who is the owner / s of a home. This document is official and must be ratified by a notary to be presented at the Property Registry.
Registering a house in the Property Registry is not always essential. It is possible to buy a house or inherit it without changing the deeds and thus save the associated expenses.
However, this procedure is mandatory if you ask for a mortgage. In addition, both in the case of sale and inheritance, the deeds of a home must be changed after death. Doing this is highly recommended, especially since it is a legal guarantee.
From a legal point of view, the title deed guarantees that you are the owner of the house, as well as the rights you have over it. On the other hand, the deed presented by the seller confirms that the property is his, which protects you against possible scams.
In the same way, by changing the name of the house deed and acquiring its ownership, you will be protecting your property from possible creditors (if the previous owner had debts before the purchase), and you will know if the house has any pending charges or payments.
Finally, the deed of a house speeds up the process of transferring the property. If in the future you want to sell the home and it is not notarized in your name, it will be difficult to prove your ownership and you could have problems completing the transaction.
What data must appear in the public deed of the house?
- Faithfulness, or what is the same, is the express manifestation of both parties (seller and buyer) to transfer the property.
- Burdens on the home (taxes, mortgages, etc.)
- Proof of payment of the IBI and fees of the Community of Owners.
- Legal provisions derived from the sale.
- Distribution of operating expenses.
- Liquidation of notarial expenses.
- Verification of the means of payment.
- Cadastral reference number and change of ownership in the property’s Cadastre.
In addition, during the signing of this document, the seller must provide or inform the buyer about:
- Whether or not the home is free of occupants and leases (if not, the situation should be indicated to the buyer).
- Possible hidden defects of the property.
- Pending payments related to municipal capital gains or income tax returns.
- Energy efficiency certificate (CEE) and current habitability certificate.
How much does it cost to change the deed of a house?
To calculate how much it costs to change the deed of a house we must add several expenses, including the Notary and Registry, in addition to taxes such as the municipal capital gain (the Municipal Tax on the Increase in the Value of the Land, which must be paid by the seller of the property) or personal income tax.
Some owners, before the sale, also sign a private pre-contract or deposit contract to give security and continuity to the operation.
Notary and Property Registry Expenses
Notary fees for changing the name of a house deed are between € 600 and € 900, and depend both on the type of real estate (house, flat, chalet, etc.), as well as on whether or not it is registered, as well. as well as the value of it in the scriptures.
Notary fees for this transaction are the same throughout Spain and are set out in Royal Decree 1426/89, with a maximum discount of 10%. Your payment must be divided between the different owners of the property (if any) and may vary depending on the amount and type of copies of the deed that we request (authorized copies or simple copies).
Taxes (VAT, Property Transaction Tax, and Donation Tax)
When calculating how much it costs to change the deed of a house, you must also add, to the expenses of the Notary and Registry, some taxes that will depend on the type of transaction, as we explain below:
If you want to title a new apartment or house, you must pay VAT (10%, except in VPO homes, which is 4%).
If you are going to buy a second-hand apartment or house, you will have to pay the Property Transactions Tax (ITP), which ranges between 4% and 10% depending on the Autonomous Community.
To change the name of the second-hand property, you must also cover the income tax percentage of the difference between the purchase and sale value.
Donations and inheritances
If you have received a donation or inherited a flat, you must pay the Inheritance and Donations Tax (ISD) and the Documented Legal Acts (AJD). The ISD is calculated on the value of the property as a whole and varies according to the Autonomous Community. Normally, it is 8% of the value of the house, although if the price of the house is high, it can increase.
In the case of donations, the amount of changing the name of the house deed may vary depending on the degree of kinship: it is not the same as a property passed from parents and children or to a spouse, which is added in the deed to a sentimental partner or a person without family ties.
How to change the deeds of a house
Changes in the name of ownership of a property are always made in the Property Registry, which is where the home must be registered.
Changing the deeds of a house will not be the same if you are the sole owner of the house or if there are more people involved in the operation. In the first case, you will have full right to make the change of ownership; in the second, you must speak with the rest of the owners so that they authorize it.
In the case of donations, you must go to the Notary Public to obtain the new deeds with the donation transmission. In inheritances, it is necessary to make a letter of acceptance of inheritance at the Notary’s Office and go with this document first to the Municipal Cadastre and then to the Property Registry.
Renaming a house deed is a process that can be complicated. That is why it is convenient to have a professional advisor to advise you on the best way to do it.