When buying a home, it’s essential to understand certain concepts. This applies whether you’re conducting the search yourself or hiring a professional to assist you, such as a Real Estate Personal Shopper (PSI). Understanding the terminology of the real estate sector is crucial..
Basic concepts we should know:
Earnest Money Contract
Earnest money contract It is a private contract signed between the buyer and seller of a home or other type of property. It is a commitment made prior to the formalization of the sale. Under the contract, the buyer gives the seller a sum of money as a deposit, which is credited towards the total purchase price. Amount: 10%.
Trading
Purchase and sale agreement between private individuals It is an agreement between two people in which one of the parties agrees to deliver a good or object to the other, in exchange for a certain price.
Public deed
When we talk about deed or public deed of a propertyWe are referring to the document that confirms the sale, in which the notary intervenes and gives public attestation.
A property deed is a document that legally binds the obligations and rights of the individual who buys or inherits a home or land..
Land Registry
Ctraffic jam It is the state register and inventory of properties containing descriptions of rural, urban, and special-category real estate. Registration is mandatory and free of charge. It is managed by the Ministry of Finance, except in the Basque Country and Navarre, which have delegated authority. The register includes a description of the property, its area, assessed value (VMA), permitted uses, etc.
Appraisal
Property valuation A property appraisal is a written document that shows a professional’s valuation of a property. If you’re applying for a mortgage, you must have a mortgage appraisal done. This way, the bank has the necessary guarantees for the loan it will grant against the property.
Euribor
Euribor It is the indicator that marks the interest rate at which European banks lend money to each other. It is also used as a benchmark in calculating variable-rate mortgage loans.
Certificate of occupancy
Certificate of occupancy is the document that certifies that a dwelling meets the minimum technical and hygienic-sanitary requirements to be occupied as accommodation for peopleIt is necessary to prove this in order to contract services, supplies, sell or buy the property..
Building Technical Inspection (ITE)
The ITE or Technical Inspection of a Building It is a mandatory building inspection system for residential buildings, which confirms that the owner is fulfilling their obligation to renovate and maintain the property. It also serves to verify the safety level of the building and its occupants, and is mandatory for buildings 50 years old or older.
Energy efficiency certificate
The energy certificate A property energy performance certificate is an informative document prepared by a qualified technician, required for renting or selling a property. It includes the energy efficiency rating and consumption of a building or part of it (house, premises, office, etc.), information on the procedure, a description of the energy characteristics, and recommendations for feasible improvements.
IBI
IBI (Property Tax) It is an annual, local, and mandatory tax for any owner of any property (homes, garages, premises, etc.) that must be paid to the town hall of their corresponding municipality simply for owning them, and which serves to cover the general expenses of the municipality.
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