We help you buy at the best price and with the best guarantees

Could I be interested in making a pre-contract for buying and selling or earnest money?

• If you have found the house you were looking for, it is advisable to decide to make a reservation. Remember that just as you liked the house, others may also like it and they could get ahead of you. Leaving earnest money or entering into a pre-contract legally guarantees us the reservation of the property for a defined period. During this earnest money period, we have the assurance that the seller cannot market, transfer, or encumber the property to third parties during the specified option period. In this way, we can process, if necessary, all the necessary procedures for obtaining the mortgage loan. Next, we can learn what a contract is, the essential elements for its validity, and the types of earnest money contracts that we can use depending on the needs and agreement of both parties."

 (Article 1445 C.C.). Through the sales contract, one of the parts undertakes to deliver a specific item, and the other to pay a certain price for it, in money or a representative symbol.

♦ It is consensual, as it is perfected by mere consent.

 ♦ It is onerous, as it involves displacements or patrimonial sacrifices for each of the parties.

♦ It is reciprocal, as the obligations bind the buyer and the seller.

 ♦ It is commutative or equivalent, since the obligation assumed by one party is considered the equivalent of the obligation undertaken by the other party.

• It is one of the most competitive, transparent, and secure activities: ? Competitive, because there are many varied offers. ? Transparent, as it is fully regulated by the law. ? Secure, because a Notary is involved, providing public faith in the transaction, followed by registration in the Property Registry.

At MUNDO PISOS, we conduct free financial studies. For this purpose, we have specialized financial advisors to design customized financial proposals for clients. Additionally, we have agreements with Spanish and foreign banking entities to secure the best mortgage conditions in the market.

Organizing your finances and having all the necessary financial information will help you assess your debt capacity, accumulated savings, and current and future income and expenses.

Next, we explain what a mortgage is, some types of mortgage loans, the documentation required to apply for a loan, and the expenses and taxes involved in the purchase of a property.

• A mortgage is a real right of guarantee and value realization, constituted through a public deed before a notary. Additionally, laws require that the mortgage deed be registered in the Property Registry. An essential requirement for the mortgage to come into existence and be effective between the parties and against third parties. Its exclusive function is to serve as a guarantee, allowing the mortgage creditor (bank, savings bank, individual, or legal entity) to subject the mortgaged property to forced sale if the debt is not paid within the agreed-upon period.

• The property does not become the bank`s ownership simply because they granted the mortgage; it always belongs to the person who purchased it. They can sell, rent, or even mortgage it again within legal limits.

• What is the best mortgage loan? The best loan is the one that best fits your possibilities, and that requires considering the three essential factors influencing the monthly installment of your mortgage:
  • Loan amount
  • Interest rate
  • Amortization period

• You can choose the monthly installments you want to pay, selecting from a wide variety of types of mortgage loans. Some examples:

? Change of House Mortgage: It`s no longer necessary to sell your current house to buy your dream home. You can purchase the property, move in, and have 5 years to sell the old one, paying the monthly installment as if you had already sold it.

 ? Up to 50 Years Mortgage: Extend the term to pay a reduced monthly installment.

 ? Increasing Installment Mortgage: Start by paying less, and each year increase the amortization installment by 1% to 2.5%.

 ? Final Installment Mortgage: Reserve 20% or 30% of the total mortgage for the last installment of the loan and reduce monthly payments.

? Fixed Installment Mortgage: Pay a constant installment that will not change throughout the life of the loan. It will have a variable interest rate, but what will change is the repayment term, not the installments.

? Open Mortgage: Have a long-term credit with mortgage guarantee for the acquisition of your primary residence, allowing you to reuse the amortized amounts for any future financial needs: home renovations, illness, car purchase, parking space, etc.

? Mixed Installment Mortgage: Pay a compound interest composed of a variable and a fixed part. You no longer have to choose between black and white; gray exists.

? Mortgage with Capital Grace Period: Want to pay only the interest and leave the loan amortization for the future? This way, you would pay much less than rent.

? Fixed-Rate Mortgage: The interest rate on these mortgages will not change during the mortgage term for the original buyer.

? Multicurrency Mortgage: This mortgage loan, instead of being referenced to the Euribor or IRPH, is referenced in another foreign currency, such as (Japanese Yen, Swiss Franc, British Pound, Dollar, etc.). This allows you to take advantage of the low interest rates prevailing in the respective country`s markets, as well as the weakness of the exchange rate of the currency in question.

FOR EMPLOYEES (SALARIED WORKERS):

? D.N.I. / N.I.E. (National Identification Document / Foreigner Identification Number)

? Employment contract

 ? Last 3 payslips

 ? Employment history

 ? Withholding certificate (I.R.P.F.) or income tax return

 ? Last 6 months of bank statements (savings account) ? Last loan receipt (if applicable)

? Rental contract and last 3 receipts (if applicable)

FOR SELF-EMPLOYED WORKERS (ENTREPRENEURS):

? D.N.I. / N.I.E.

? Latest income tax return (I.R.P.F.)

 ? Last quarters of VAT (Value Added Tax)

? Annual summary of VAT (previous year)

? Last self-employment receipt (Social Security payment)

? Last I.A.E. (Economic Activities Tax) receipt

? Registration of economic activities

 ? Bank statements

? Last loan receipt (if applicable)

? Rental contract and last three receipts (if applicable)

DOCUMENTATION TO BE PROVIDED BY THE SELLER:

 ? Photocopy of the Property Deed and an updated simple note. ? Last annual receipt paid for the Property Tax (I.B.I.).

? Last annual receipt paid for the Incinerator (solid waste).

? Last paid receipt for the community fees.

? Necessary documentation to contract the services and supplies of the property.

? Certificate of fitness, if the building has been required to undergo the Technical Inspection of Buildings (I.T.E.).

IN THE CASE OF NEW CONSTRUCTION:

? Deed of Declaration of New Construction and Horizontal Division.

? Habitation Certificate.

 ? Quality report.

? Plan of the house, specifying the useful and built surface with measurements certified by competent technicians.

? Location plan of the building.

? Documentation regarding the guarantees of the property, specifying the guarantors, the holders of the guarantee, the rights of the holders, and the duration of the guarantee.

• The expenses in the buying and selling process are shared between the buyer and the seller.

EXPENSES BORNE BY THE SELLER:

 ? Capital Gains Tax: This is a Municipal tax on the increase in the value of the land, paid each time there is a transfer of real estate.

 ? Those derived from the intervention of a Real Estate Agent.

EXPENSES BORNE BY THE BUYER:

? 8% Property Transfer Tax on existing free homes (10% VAT on new construction homes). This amount is paid on the notarized value.

 ? Approximately 1.2% Documented Legal Acts Tax (A.J.D.). This tax applies to notarial documents related to the mortgage guarantee value.

? Writing fees for the mortgage loan if applicable.

? Bank expenses: opening commission, insurance; the entity will inform you of possible charges in case of early repayment.

? Notary fees: for the mortgage loan deed and the property purchase deed.

? Property Registry fees: for registering the deeds, confirming you as the new owner and documenting your mortgage loan.

? Administrative agency fees: usually responsible for administrative procedures such as registration and tax payments.

? Property appraisal: the buyer is responsible for paying into the appraiser`s bank account.

The total expenses in the purchase of a property typically range between 9% and 13% of the notarized value.

• Our product range covers a wide variety of properties, whether they are new constructions or second-hand: apartments, flats, penthouses, ground-floor units, houses, chalets, rustic estates, commercial spaces, land, vacation villas...

The satisfaction of finding your ideal home is our goal.

At MUNDO PISOS, we prioritize acquiring the best properties. Our entire portfolio of properties for sale has gone through a rigorous selection process, ensuring the best quality-to-price ratio in the real estate market.