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At the time of buy a house or apartment in Uruguay, either through a real estate or directly with the owner, it is important to know about the procedure for acquiring a property. Terms like reservation slip, deed and the promise of alienation are not usually part of the day to day of most people, so they can scare more than one. In this Pocket Finance we will see what are some of the procedures to be carried out, what are the associated costs of the process and how it changes taking a mortgage loan.
“Once the parties reach a commercial agreement, with the proper advice of the professionals involved, the terms and conditions of the transaction will be negotiated and agreed upon. real estate”, The clerk Gustavo Di Genio from the Pérez del Castillo study told El País.
And it is at that moment that the reservation slip. The professional explained that it is granted “for the purposes of laying the foundations of the business” such as the object, price, deed term, among other points. It is a “preliminary contract, the text of which will be issued by the acting notary, appointed by the purchasing party.”
When it is granted, it is the style that the one who is going to buy gives the notary “a sum of money as a guarantee deposit for the projected business (it is customary and used that it is 10% of the agreed price)”. On the other hand, whoever is going to sell, generally, “hands over to the intervening professional the documentation of the property (property title, plans, etc.) for their study, who will also become the custodian of the same,” he added.
The next step is the deed. In the reservation ticket, a term is agreed for the “transfer of ownership of the property to be granted before a notary public, after rigorous study of all the documentation related to the property and its antecedents by the latter (called ‘study of titles’ ) ”, He indicated.
The deadline “is usually between 30 and 60 days,” depending on the “complexity of the matter, the location of the property and the interests of the parties,” Di Genio said.
The “first copy of the deed must be registered in the respective public registry (Property Registry, Real Estate section of the place where the property is located), which will grant real rights in the property. This procedure will also be carried out by the acting notary ”.
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At the same time, it warns that, “without prejudice to the foregoing”, if it is a “future unit of horizontal property (building under construction) or there is another circumstance that warrants it (for example, the payment of the price in a deferred manner ), to the Sell script it may be preceded by a promise of alienation The purchase and sale commitment Between the parts”. It is also a “preliminary contract, but it has registration capacity (its registration gives rise to the aforementioned real right), which is an advantage for the promisor acquirer in relation to other legal systems”.
Expenses.
The buying a house or apartment has certain associated costs. Di Genio explained to El País that the amounts “will depend on the amount and complexity of the matter, the vehicle or legal structure chosen to carry it out and other aspects related to the real estate transaction.” The one who buys must allocate “between 5% and 9% of the price or value of the good object of the operation”.
The clerk listed “some of the items to be considered by property buyers, without prejudice to the tax exemptions that are applicable and the particularities that may correspond in each case ”.
On one side is the brokerage commission (3% plus VAT of the transaction amount) that the real estate agent is entitled to receive.
There are also the notary fees: “The notary public, intervening professional (in charge of the advice, study of titles, deed and registration and withholding agent and collection of taxes), must be chosen by whoever acquires the asset. In accordance with the official tariff in force, the notarial fees for participation in this type of contract amount to 3% plus VAT of the transaction price ”.
Another point to take into account is taxes. Di Genio commented that, “except for exceptions (purchase of homes promoted by the National Housing Agency, for example), the buyer of a property must pay the Property Transfer Tax (ITP), at a rate of 2% of the real value updated asset (cadastral value, generally significantly lower than its market value) ”.
On the other hand, “the expenses that make the study of the documentation related to the property and the registration of the contracts in the respective public registry must also be assumed by the buyer. The charge in this matter will depend on the property’s property history. For these purposes, we can estimate costs between US $ 250 and US $ 400, “said Di Genio.
In addition, it must be borne in mind that, without prejudice to the tax exemptions that are applicable, the owner will be responsible for the payment of a series of taxes and expenses associated with the ownership of the real estate or the economic performance of its exploitation, in the future, as appropriate (Real Estate Contribution, Primary, Heritage and Income, by way of example) ”, he added.
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What changes in the buying process taking a mortgage loan?
“The need (or preference) to obtain a mortgage loan for the acquisition of an asset, forces us to take certain precautions when structuring the transaction, “said Di Genio.
The scribe listed aspects that must be taken into account. One is fitness. He understands that “it is important to know the situation of the future buyer and the property that will be offered as collateral. That is, to have certain certainty that the client has sufficient elements to be accepted as a credit subject (due to his volume of income, age, etc.) and that the property is liable to be subject to a mortgage (commonly known as property that “ accepts bank ”, which means that it is regular, has no debts, etc.)”.
Another point is the term on the reservation ticket. A “reasonable one, greater than that of any unfunded operation” must be established, which allows “processing the mortgage guarantee with the creditor (bank or other). Generally, the sale and mortgage are subscribed simultaneously, paying the price with the loan obtained and serving the property that is purchased as collateral (another asset or right could be offered), which implies a study of the title by the creditor’s notaries. , which demands your time (file presentation, information exchange, property appraisal, etc.) ”.
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The loan path
Buy a property with a mortgage loan it is one of the many options. Choosing that path modifies the process of acquiring a good. Di Genio said that, “in order not to commit to acquire an asset without having sufficient funds and depending on a third party (creditor),” it is suggested to “condition the purchase on obtaining the mortgage loan.” This “must be discussed and previously agreed with the seller, since it implies a longer term and compliance with the condition does not depend on him. This means that, if the credit is not obtained, the reservation ticket can be rescinded without responsibility ”, that is, without paying anything, he added.
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Tips for the first home
“There are several aspects that should be considered when acquire a propertyespecially when it’s done for the first time, ”said Di Genio. On the one hand, before searching the market and assuming obligations, the buyer “must be clear about his economic-financial situation.” Such evaluation will depend, “to a great extent, whether or not it requires financing (bank or other) for its acquisition.”
In addition, it understands that it is necessary to obtain advice from the real estate point of view (that is reported on all aspects of a property such as location, market values, accessibility, type of housing and associated costs such as common expenses and taxes), notarial and legal ( turn to a professional to finalize the operation), and architectural (consult a technician in the field, check the property).
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