Having the title deeds of a plot of land in order is a necessary procedure to prove that the property belongs to a person and that everything is legalised according to the law. If you want to build or renovate a house, one of the obligatory documents that you will have to justify are these permits, so that they authorise the procedures for its construction. One of the questions that worries many homeowners is how much it costs to deed a plot of land. Let's take a look.
Before deciding to buy a plot of land, it is necessary to clarify some basic concepts, as urban land is not the same as rustic land. The former are located within the municipality while the latter are normally outside the urban area. The most relevant differences refer to their use and availability. In the case of urban land, the construction of a house is allowed, and in the case of rustic land, it is not usually buildable and is limited to agricultural or livestock activities. As far as services are concerned, the Town Council provides those within the locality with electricity, water, rubbish collection and similar services. The latter are not obliged to provide these services.
Deeding a plot of land is a step that must be taken sooner or later if you want to buy a plot of land in Spain. This document verifies that the purchase or donation is legal, the actual surface area, location and other encumbrances. When reference is made to the process of "Escrituration", everything that is involved is included, as it is the notary who is in charge of this process and its registration in the Land Registry. Therefore, this price includes the value of the deed, notary fees, taxes and the registration fee. Let's see how much it costs to deed a plot of land in Spain.
Generally, the expenses are between 10% and 12% of the cost of the property, distributed as follows:
In the case of the buyer, this must be included:
For the seller, he must cover the income tax.
In the case of a donation, a different deed will have to be drawn up, in which the name of the person to whom the property is given and the persons who have given it will be reflected. The price will depend on the number of donors and the length of the deed. So it can be very relative. If we want an estimate of how much it costs to deed a plot of land in the case of a donation, the cost is usually between 150 and 600 euros.
The first step in order to deed a property is to visit a notary, who will ask for a certificate of purchase in order to prepare the papers to be signed and process the registration.
Some of the permits they will ask for are:
First of all, it will be checked whether it is in the register of the municipality where the area is located. This information is public, so anyone can access it, as long as they fill in a form and pay the corresponding taxes.
If it is not, it will be necessary to legalise the ownership, for which a series of steps must be followed:
It is not possible to register a plot of land without title deeds. In the event that it has been a donation, the file with its cadastral reference will have to be presented. On the other hand, if it has been inherited and there are no papers to prove that the land belonged to those relatives, you will have to collect all the information possible to prove that you have the right to the plot.
If you decide to do this, there are 3 options:
One of the mistakes that is often made is to deed below the sale value. When we fix a lower amount than the corresponding one, this allows us to save an amount a priori but it has a great disadvantage, and that is that when we want to sell that property, we will have to pay a higher tax for that capital gain. In addition, there is the risk that the tax authorities may impose a fine or sanction. In case of doubt, it is recommended to ask an expert and/or professional, so as not to determine a value that does not resemble reality.
One of the most frequently asked questions is how much can be saved if these documents do not exist. These documents prove that everything has been established in accordance with the law. They contain the following information:
Another of the major complications faced by a property of this type is that the banks will not give permission for a mortgage, if all the regulated documents are not in place, as reflected in article 145 of the Mortgage Law. As you can see, it is necessary to have this real estate title deed, as without it, it is not possible to have ownership of a property or plot of land. Absolute peace of mind that the property belongs to a person and that you have full rights is only possible by means of the title deed. We hope we have been able to help you determine how much it costs to deed a plot of land and the necessary steps to do so.