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How much does it cost to deed the purchase of a home and what must be kept in mind for a successful process - Infobae
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Cuánto cuesta escriturar la compra de la vivienda y qué hay que tener presente para un trámite exitoso
Se trata del valor de la transferencia de la propiedad por parte del vendedor. Los honorarios del escribano, los impuestos y documentación básica
www.infobae.com
February 21, 2024
This is the value of the transfer of the property by the seller. Notary fees, taxes and basic documentation
By José Luis Cieri
"Justification of funds is required, especially if the deed exceeds 875 minimum vital and mobile salaries ($156,000), which is currently equivalent to $136,500,000," said Beatriz Álvarez, secretary of the College of Notaries of the Autonomous City of Buenos Aires. (Getty)
Beyond the task of raising the necessary funds for the acquisition of a property, the buyer must keep in mind that the operation is not limited only to the disbursement of the price of the property. The deed of a house / apartment entails a series of financial and legal obligations that are crucial for the successful completion of the transaction. But, the key question arises: What is the real cost of deeding both in the Autonomous City of Buenos Aires and in the province of Buenos Aires?
The deed process involves compliance with various tax obligations and fees, which fall on both the purchaser and the seller. In both cases it is important to take into account a series of steps and requirements that the notaries request from the parties.
In CABA, once the purchase and sale operation has been agreed upon, and according to what Beatriz Álvarez , secretary of the College of Notaries of the Autonomous City of Buenos Aires (Cecba), told Infobae , “in relation to the property, it is necessary to have the original property title, generally a writing In some cases, this title is complemented by other documents, such as the succession of the parents in situations where they purchased and died. To speed up the processes, the legal alternative known as abbreviated tract is mentioned , managed by the same notary.
In addition to the property title, a copy of the co-ownership regulations is required in the case of apartments or PH; as well as tax, service and expense receipts. In the case of the sale of a plot, whether built or not, it is necessary to present the parcel status, for which a surveyor must be hired to examine the property in terms of measurements, boundaries and surfaces, and report it to the Government. porteño.
The selling party must manage the Property Transfer Offer Code (COTI) for sales that exceed $9,400,000, using their AFIP tax code.
“Regarding personal documentation, the last DNI issued is required. In the case of divorcees, the corresponding accreditation is requested. For buyers, justification of funds is required, especially if the deed exceeds 875 minimum vital and mobile wages ($156,000), which is currently equivalent to $136,500,000,” Álvarez added.
Not only is it vital to agree on the purchase price, sellers and buyers must also carry out the deed that consolidates the operation (Photo: Pexels)
In the case of sellers, in addition to the aforementioned documents, the consent of the spouse or registered cohabitant will be required in certain situations: if the property is marital (it was acquired during the marriage); or if the property is one's own property (received by inheritance, legacy or donation, or acquired prior to marriage) but it is the seat of the family home.
When making the decision to purchase a property, it is essential to use a trusted notary's office before signing the reservation. This step offers advantages, such as impartial advice and an exhaustive review of the property title, covering a study that covers the previous 20 years, to prevent conflicts or resolve possible problems. It also implies control of the origin of the funds intended for the purchase.
Check
It is essential to verify the capacity and aptitude of the seller, ensuring that the deed expenses correspond correctly to the buyer.Andrea Rey , from Escribanía Rey, added: “It is recommended to confirm whether built-in appliances, such as appliances and air conditioners, are included in the sale or, failing that, leave their exclusion from the price in writing. In short, this process seeks to ensure that all aspects are adequately covered.”
It is advisable to reserve the title study ad-referendum and include specific clauses, especially in cases of change of family home or acquisitions through mortgage credit (whose prompt reactivation is expected to speed up the real estate market).
It is vital to read everything carefully before signing.
“On the other hand, the seller must have the documentation prepared, including the original property title. In cases of death of the owner and succession, it is required that all judicial procedures be completed, with the corresponding registration order,” Rey added.
What does the seller pay?
The sale of a property in CABA entails local and national taxes. At the local level, the Stamp Tax represents 3.5% of the price, valuation or Reference Real Estate Value (VIR), paid equally between buyer and seller, unless different agreements are made.Regarding national taxes, legal entities face 3% for Profits, while for individuals, if they acquired the property before 2018, it is 1.5% for the Property Transfer Tax (ITI); If it was after that date, the Cedular Income Tax is applied, declared later in AFIP.
Regarding national taxes, legal entities face 3% for Profits, while for individuals (Reuters)
“Individuals who sell a home for residential use can request a certificate of non-withholding for housing replacement from the AFIP. This implies committing to use the funds received to acquire another property within 12 months for the same purpose. In addition to taxes, the seller assumes all expenses up to the deed, including registration certificates, debt certificates, study of titles and completion of said certificates,” explained Juan de Dios Troisi, member of Cecba.
What the buyer pays
Assume the notary's fees and all expenses related to registration, fees, contributions and stamping. In the case of acquiring a property intended for a single, family home and permanent occupation, there is an exemption of $24,889,350 on the tax base of the Stamp Tax, which implies a discount on the price before applying the 3.6% mentioned.“It is essential to highlight that, in accordance with the principle of autonomy of the will of the parties, all these aspects can be modified contractually. If a reservation establishes that all expenses, fees and taxes are the responsibility of the buyer, this condition will prevail in the transaction,” commented Álvarez.
The bill of sale or transfer of rights are valid documents but not secure or definitive and can be revoked or resolved by actions of third parties. What is valuable is the deed that assures the buyer the title of the property.
How long does it take and why is it convenient?
The deed process in CABA is completely digitalized, with dispatch times of 4 business days for urgent procedures and up to 7 business days for simple procedures.In the province of Buenos Aires, the only non-digitalized management is the request for municipal debt, which is still done in paper format and can take time.
“Certificates with urgent processing and the cadastre are usually resolved in 3 business days. Any delay may be due to unfinished inheritance deeds or rectifications arising from the title study, but if the documents are updated, the aforementioned deadlines apply,” Rey commented.
It is crucial to note that both the seller and the buyer must proceed with the deed of the sale.
The lack of deed can leave the seller responsible for taxes, facing seizures and unavailability of bank accounts. In addition, the buyer who does not register the property in his name runs the risk of having the seller seized and the property foreclosed.
Rey advised: “When starting a purchase and sale process, it is essential to consider that the successful conclusion of the process implies the signing of the transfer of ownership deed, avoiding leaving this stage for later. In the case of apartments in a well or brand new, it is essential to analyze how the business is planned to avoid complications related to transfers of rights.”
By signing this document, the transaction is consolidated and recorded in the file of the College of Notaries, allowing new copies to be obtained in case of loss (Pexels)
The only way to acquire full ownership of a property is through a public deed before a notary (except judicial auction, usucapion or other judicial cases), it is the safest way to know the legal status of the property, know if there are no embargoes, debts and, fundamentally, if the person selling is the real owner of the property.
“It is crucial to highlight that documents such as sales tickets or transfers of rights do not grant ownership; only the deed confers ownership. The operation, supported by the Second Testimony, a valid copy of the deed, provides documentary support that ensures the protection of the owner's rights, even in situations of loss of the original document," highlighted Diego Leandro Molina , president of the College of Notaries. of the Province of Buenos Aires.
Although the work of the notary is essential to guarantee the legality and security of the transaction, the total times of the operations are often affected by procedures of other professionals or state agencies related to the notarial process (such as the strike at the beginning of 2023 in the Property Registry in La Plata ).
Molina expanded: “The optimization of these processes could reduce deadlines, allowing the deed to be signed in approximately one week.”
Experts maintain that it is essential to understand that the State uses notaries to collect taxes by withholding various taxes at the time of the deed.
“Once the deed is completed, with the study of titles carried out by the notary that ensures that the seller is completely legitimate to do so, plus the delivery of possession, the buyer becomes the owner of the property, and there is no possibility that anyone can carry out “no type of claims about ownership,” Troisi highlighted.
Fees in CABA and keys
The CECBA notarial fee establishes a fee of 2% of the value of the property.At the time of the deed, upon receiving the keys you enter into possession of the property. It is advisable to have the intermediary present to check that the condition of the property matches what was agreed upon in the purchase.
The acquisition of a property in CABA with a value of USD 100,000, calculated at the seller's Banco Nación dollar exchange rate of $853.50, implies an approximate outlay of $1,800,000 for a buyer who uses the property as a single home and not owns another property in the city.
Buenos Aires land
The deed, under the guardianship of a notary, is the only document that confers ownership of a property in the province of Buenos Aires, being an essential legal support to guarantee the security and validity of the operation.Regarding the costs associated with a sale, current legislation establishes that the notary's fee in the province of Buenos Aires is equivalent to approximately 2% of the amount of the operation or the tax valuation, being a quarter of the total costs.
The rest includes taxes, related expenses and with holdings made by the notary, acting as a withholding agent at the provincial and national level.
Molina concluded: “To lower the costs of real estate transactions, it would be imperative to reduce the corresponding taxes. Some examples of these levies include the Stamp Tax, the payment for certificates, the registration fee and, in certain cases, the property transfer tax (1.5 percent).”
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