Has Debts
Before buying a home, it is essential to ensure that it has no encumbrances or debts that could affect you in the future. Here we explain how to check if the property you wish to acquire is free of debts and encumbrances.
1. Check the Property Registry
The first step to verify the encumbrances of a property is to request a Simple Note from the Property Registry. This document will provide you with detailed information about the legal status of the home, including:
- Current Owner: Confirms who the legitimate owner is.
- Encumbrances and Liens: Details mortgages, foreclosures, usufructs, and any other encumbrance on the property.
- Property Description: Includes basic data such as location, area, and boundaries.
To obtain the Simple Note, you can go in person to the corresponding Property Registry, request it by mail, or do it online through the website of the College of Registrars.
2. Check the Status of Payments to the Homeowners’ Association
- Request a Debt Certificate: This certificate, issued by the community administrator, confirms whether the current owner is up to date with payments.
- Consult the Minutes of the Meetings: Review the latest minutes of the homeowners’ meetings to verify any possible special assessments or extraordinary expenses approved that have not yet been paid.
3. Check the Status of Utilities
Make sure that the utilities (water, electricity, gas) are up to date and do not have any debts. You can request this information directly from the utility companies.
4. Status of Municipal Taxes and Fees
Verify that municipal taxes, such as the Property Tax (IBI), are paid. This can be checked by requesting the last paid receipts from the seller or going to the corresponding Town Hall.
5. Mortgages and Foreclosures
The Simple Note from the Property Registry will indicate if there are any mortgages or foreclosures on the property. If there is a mortgage, negotiate with the seller to have it canceled before the purchase or deducted from the sale price.
6. Pending Debt Certificate
If the home has a mortgage, it is important to obtain a pending debt certificate from the bank. This document indicates the exact amount remaining to be paid and the conditions for its cancellation.
Conclusion
Buying a home is a significant investment, so it is essential to ensure that it has no encumbrances or debts. By following these steps and consulting with professionals, you can avoid unpleasant surprises and ensure a safe and transparent transaction.
If you need more information or advice, do not hesitate to contact real estate or legal experts who can guide you through this process.
