Buying or selling a house is not an activity that any citizen frequently faces throughout his life, nor to which he is too accustomed. Typically, you have to find out what the steps to follow in this important and stressful process at the same time.
When the time has come to finally close the sale of a property, there are several procedures that must be carried out. This is when professional companies such as agencies come to play an important role.
But before knowing its role in detail, it should be clear that an agency is a service company that is an expert in procedures for both companies, freelancers or individuals, which must be managed by at least one administrative manager accredited by a professional association. To be a manager, you need a university degree in Law, Business Administration and Management, Business or Economics.
The agency: a key piece
At process of buying and selling a property there are different phases in terms of processing. The journey begins with the reservation or pre-contract of the property, from there we will go to earnest money contract and then it will be time to raise this contract to a public deed, an action in which a notary must intervene, in charge of thus recording the change of owner of the home and the conditions of sale.
With the previous steps resolved, it is the turn of a series of procedures and payment of taxes For those who, with the help of an agency, everything can be easier, both for the seller and the buyer.
On the part of the seller, he has to resolve the payment of two taxes: that of Patrimonial Transmissions (ITP) and that of Municipal Capital Gain, both within 30 days of the sale. As each municipality and region of Spain have different regulations regarding these taxes, the agency will know how to accurately inform and advise on the amounts to be paid in each case. It can also be in charge of the processing of the registration cancellation of previous charges that could appear on the property to be purchased.
As for the buyer, the first and most immediate of the procedures to be carried out after the purchase of the home is their registration in the Property Registry. It is a mandatory procedure for buyers who need to apply for a mortgage and must be done within 60 days of signing the purchase agreement.
A second aspect that the buyer must take into account and on which an agency can advise is related to the change of ownership in the Cadastre. It is a procedure that is done automatically when the contract is made public.
The relationship of the bank and the agency
The registration of the home by the buyer in the Property Registry is a compulsory procedure in case you need apply for a mortgage, something that happens in almost all operations, with more or less large loans.
Therefore, we must dwell a little more on the connection between bank and agency, because the banking entities that grant mortgage loans not only do not admit that the procedures for granting the mortgage are carried out by the buyer in a personal capacity, but also usually put conditions when choosing one agency or another. In fact, each bank works with agencies they trust, due to the relevance that the fulfillment in terms and forms of the aforementioned procedures acquires.
Banks are not in the habit of allowing work with agencies outside their orbit of trust and, if they do, they will verify that they are a duly approved professional, that they have civil liability insurance and that the property’s registration is of this guaranteed mode. The mediation of an agency in the signing of the mortgage thus becomes crucial to facilitate and expedite the entire process.
The fees of an agency
Unlike notaries, whose fees are set by law, those of a professional manager are free. However, there are no major differences between them and the budgets are around 400 euros for real estate sales operations. Of course, the client does not pay that cost directly, but makes a provision of funds with the bank so that the agency not only charges its services but also costs the expenses related to procedures and taxes.
After the years of loans and enjoyment of the home, the agency can return to action when it is time to cancel the mortgage in the Property Registry and thus leave evidence that the home is already free of charges.