Financial and legal aspects you should know

Once the appropriate checks have been made, you are in a position to give a signal as a guarantee of your commitment. The most used form in the sale of second-hand homes to commit both parties is the Arras or signal contract, although there are others (private sale, payment, and signal, purchase option), the most recommended is this.

The signal or deposit is like a payment on account that, therefore, will later be deducted from the price to be paid. It is a commitment, although not definitive since both the buyer and the seller can back out at any given time, but by indicating that the contract is Arras, it will automatically be governed by what is stated in the Civil Code for these cases, to know: In the event that it is the seller who withdraws from the operation, he must return to the buyer double what was delivered, and if it is the buyer who withdraws, for whatever reason, he will lose the amount delivered.

It is customary in sales between individuals due to haste and sometimes due to ignorance, writing this operation between them on a piece of paper, which can later cause problems in case it does not come to fruition and one of the parties wants to claim your rights, it is very important not to take this commitment lightly and write an Arras document detailing clearly the parties involved in it, the amount that is delivered, the concept for which the delivery is made, the reservation period, detail the property on which the deposit is delivered, and clearly detail that the delivery is made as penitential deposit indicated in article 1454 of the Civil Code.

Before stamping your signature on the contract, carefully read all the clauses and, especially, those that specify who will be responsible for the expenses or taxes that the operation entails, if you have doubts, do not think twice: go to a professional of the right, and remember, the real estate professional is there to help you. Our recommendation for these cases is to go to a professional, since he will be able to help us, and it is better than having to regret it.

The Arras document is actually a simple procedure to “ensure” the property that we want to buy, since immediately and without delaying too much, we must go to the Notary and raise our commitment to a Public Deed of sale, with the corresponding total payment of the price agreed. This will ensure us as owners in full ownership of the property.

Purchase or rental expenses


At the time of formalizing a Tax Benefits of Rental Property or mortgage, it is carried out by means of a public deed, carried out by a Notary, giving public faith of the deed, that is, it certifies the operation and may be freely chosen by the applicant from among those who operate in the market. . Notaries have established their fees, known as tariffs, by law.

Likewise, some expenses are accrued for obtaining Simple Notes from the Property Registry, which is the information that the Property Registry offers us on the state of charges (who is the owner, if there are previous mortgages or problems of any type) that the home you want to acquire has. Its cost should not exceed 2000 pesetas per note.

Property Registry

Legal institution whose main purpose is to publicly and solemnly endow acts of the constitution, transformation, modification, and extinction of ownership and rights in rem over real estate. Registrar fees are also known as fees.

There is no Registry in all the localities and we assume that its distribution was similar to that of the Judicial Districts. With the registration in the Property Registry, we obtain full legal certainty of the transmission, eliminating null, abusive and personal agreements by means of the notary. The deeds of purchase and sale, partitions of inheritance (they imply ownership), mortgages (right to a mortgage), rights of easement, usufruct, bare ownership, liens, etc. are registered in the registry.

We must first go to the Property Registry, to find out if the home we want to buy has any charge or encumbrance, and the document they issue for this information is the Nota Simple from the Property Registry, which has a small cost.

The financial entities carry out these procedures for us when contracting a mortgage since their collection depends to a large extent on the fact that the property they mortgage does not have any charge.


The administrative expenses are those derived from the procedures of the deed, both purchase, and sale, mortgage, cancellation, subrogation, etc., liquidation of the Tax on Patrimonial Transmissions in the case of sale or Documented Legal Acts in the case of mortgages and of the procedures carried out in the Land Registry.

The agency is in charge of processing the change of name of the Tax on Real Estate when there is a sale, or the Tax Advantages of Rental Property on a Rustic Nature if this is the case.


In mortgages, the Property Transfer Tax is accrued, for second-hand homes. Taxes transfers of assets that involve an exchange of goods. The applicable rate is 6%.

The Tax on Documented Legal Acts is also accrued, this tax is levied on the deeds of the constitution of mortgage loans. It must be paid for the fact of formalizing the public deed. Currently, the applicable tax rate is 0.5% of the value of the mortgage guarantee and is paid by the buyer to the Treasury at the time of acquisition.

This amount of total mortgage liability is made up of:


  • The amount of the loan
  • A legal maximum of interest, which varies depending on whether they are fixed or variable
  • A legal maximum interest on arrears

Ancillary benefits (to meet various expenses in the event of non-payment of the loan, such as community, contributions, etc.)An amount in anticipation of non-payment for expenses of lawyers and solicitors.

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