Understanding the Notarial Deed: How It Works and Its Costs

Are You About to Buy a House? Pay Attention to the Deed!

If you’re considering purchasing a property, understanding the importance of the notarized deed is crucial, as this is the moment everything is decided.
The notarized deed is the formal act that officially transfers ownership of the property to you.
Without this step, the buyer has no legal rights to the property.

The term “deed” comes from the Latin “rogare,” which means “to ask” or “to propose,” referring to the notary’s request to both parties to affirm their intention to conclude the contract.

Recent Changes in Legislation

Recent developments from the Employment Decree Law have introduced significant changes regarding the content of the deed.
It is no longer obligatory to include the broker’s commission in the deed, which was previously required to detail the agent’s commission amount and identification information.
However, the obligation to pay the commission remains, but its arrangements are now privately managed by the parties outside the notarial context.

The same legislation continues to support first-time homebuyers with tax deductions for specific categories, such as young professionals and buyers planning to use the property as their main residence.
Benefits include a reduced registration tax of 2% on the taxable value and a 19% deduction on brokerage expenses up to 1,000 euros, provided the payment is made through tracked methods.

Understanding the Deed and Its Significance

The deed, formally known as a public act, is drafted by a notary and serves to formalize a contract between the parties.
In everyday terms, it refers specifically to the deed associated with real estate transactions, marking the transfer of property from seller to buyer.
The notary acts as a guarantor of legality, ensuring all legal conditions are satisfied.

This act is crucial not just for transferring ownership but also for providing legal security to the involved parties.
If delays occur in signing the deed, they may lead to serious legal repercussions, including requests for damages or contract termination.

Cost of the Deed

Lastly, be prepared for various costs associated with the deed, including the notary’s fees, registration tax, VAT (Value Added Tax), and mortgage and land taxes.
Typically, these expenses mostly fall on the buyer and are often divided based on the purchase specifics.