Who pays notary fees for the purchase and sale of a property
One of the questions when buying or selling a property is who pays what. On the other hand, it is also necessary to consider that the final price will not always be the price that is fixed in the property. This will vary depending on the expenses in the sale and purchase. But who pays what? Is it the buyer who has to assume all the expenses or perhaps it is the seller who pays this sum to free the buyer from certain formalities? In the following, we are going to explain what these expenses are in the sale and purchase of a property and, most importantly, who pays each one of them.
Therefore, in general terms, we can say that both parties are responsible for the payments derived from the purchase and sale of a property and that, if not stipulated in writing, they will be paid according to the law in force at the time of the purchase of the property.
Who pays the notary fees in a sale and purchase 2020
PURCHASE OR SALE OF REAL ESTATE WITHOUT MORTGAGEHere you will be able to calculate your notary, charity and registration costs for BUYING OR SELLING a house, local, warehouse, office, lot and farm, discriminated for buyer and seller.
PURCHASE OR SALE OF REAL ESTATE + MORTGAGE TO FINANCIAL ENTITYHere you will be able to calculate your notarial costs, benefit and registration of PURCHASE OR SALE of housing, local, warehouse, office, lot or farm discriminated for buyer and seller with mortgage to FINANCIAL ENTITY (BANKS).
PURCHASE OR SALE OF REAL ESTATE WITH MORTGAGE TO INDIVIDUALSHere you can calculate your notarial costs Beneficence and registration of PURCHASE OR SALE of housing, premises, warehouse, office, lot or farm discriminated for buyer and seller with mortgage between individuals.
What the buyer and seller of a house in colombia pay
Most of the people who are going to buy a house do not know the expenses associated with it, and what is their surprise when to the sale price they have to add taxes, notary fees, registry fees, etc…
Therefore, it is customary that the buyer is the one who assumes the notarial expenses, and it is also customary that to assume them supposes certain tension in the negotiations. But, before the assumption of these expenses can suppose an insurmountable stone in the way of a negotiation, it is convenient to know of what amount we speak really, that is to say, how much does it cost that a notary intervenes the deed of sale of a real estate?
That is to say, the reality, far from what the “urban legend” usually says, is that the expenses of notary’s office suppose a derisory percentage in relation to the price of sale and, therefore, it does not seem very reasonable that its assumption can come to suppose a conditioning factor at the time of carrying out a sale and purchase.
What the buyer and the seller of a property pay
The cancellation of charges and encumbrances and mortgages, and the expenses that are derived, are also governed by the freedom of agreement, although if the sale of the property in question is agreed as free, the cancellations by means of writing will be in charge of the seller.
The payment of the tax on the Increase in Value of Urban Land corresponds to the seller, unless otherwise agreed. But if by express agreement the obligation of payment is transferred to the buyer, the creditor municipal entity has no action against him, although the seller who pays the debt can repeat against the buyer the amount paid to the local administration.
If the buyer constitutes a mortgage for the purchase of the property, he has to pay the notarial deed, the stamp tax (1%) and the fees of the Property Registrar, in addition to the financial costs of granting the loan.
However, in spite of the aforementioned freedom of agreement, it must be taken into account that in sales to developers, the Jurisprudence has considered abusive some clauses such as those that intend to impose on the consumer the expenses derived from the preparation of the title deed that by their nature correspond to the businessman, as would be the deed of new construction and horizontal division, mortgages to finance the construction or its division and cancellation. It has also been considered abusive the clause by virtue of which the Promoter imposes to the buyer the payment of the capital gains tax or tax on the increase of the value of the land of urban nature. This would not be the case if the sale were between private individuals.