Legal Fees

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This topic contains 11 replies, has 5 voices, and was last updated by Profile photo of Fuengi (Andrew) Fuengi (Andrew) 7 years, 7 months ago.

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  • #54934
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    I am about to close on a property and I have received a breakdown from my solicitor, I have some questions over amounts being charged.

    Its a new property, value 165K in Manilva.

    On top of the standard fees inc. Solr Fee some of the charges seem high:

    1% Stamp duty ( I have seen .5% on the web as the norm)
    Notary Fees 1000 ( 600 seems like the norm)
    Land Registry 900 ( Is this high?)
    Law Agent 275
    Plusvalia Tax 2000 ( This seems particularly high )
    Incidentals 200

    Thanks,

    C.

  • #91796
    Profile photo of Inez
    Inez
    Participant

    Conn,1% stamp duty is normal.

    With regards to the others, you can call thenotary to ask what they charge, but sometimes lawyers ensure there are enough funds and return the difference.

    Whats the law agent?

  • #91798
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Hi Conn,

    heres a silly question.

    why exactly are you, the buyer, paying the Plusvalia?

    what I mean by this that as its a tax set by the local gov. and based on the increase of the value of the asset from the date the owner bought it to the present sale.

    I know in some cases the buyer gets lumbered with this tax, but it should be for the vendor to pay.

  • #91800
    Profile photo of Anonymous
    Anonymous
    Participant

    Usually I deduct the plusvalia from the vendors price and have the buyers lawyer submit the plusvalia to ensure it has been paid, otherwise the vendor will skip off back to the UK without paying and the buyer will find it may become a debt accotiated with their property.

  • #91805
    Profile photo of Anonymous
    Anonymous
    Participant

    Wouldn’t it be a brilliant idea if the seller paid this Tax in advance of completion…or hasn’t anyone thought of doing that before! ๐Ÿ™„ No Tax paid…no completion!!

  • #91806
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    Wouldn’t it be a brilliant idea if the seller paid this Tax in advance of completion…or hasn’t anyone thought of doing that before! ๐Ÿ™„ No Tax paid…no completion!!

    That would be too high a risk for the vendor Claire, especially when a considerable percentage of sales agreed can fail due to the changing finance availability.

    Also the amount of Plusvalia needs to be calculated to the day of completion.

  • #91810
    Profile photo of Anonymous
    Anonymous
    Participant

    In that case the purchaser should deduct the tax payable, from the amount to be paid to the vendor, at the point of sale. Or is that too simple? ๐Ÿ˜‰
    OR.. if the vendor is not a Spanish national, then withhold the vendors passport until the tax is paid. That way they cannot abscond. Problem solved!! ๐Ÿ˜†

  • #91811
    Profile photo of Anonymous
    Anonymous
    Participant

    @Claire wrote:

    In that case the purchaser should deduct the tax payable, from the amount to be paid to the vendor, at the point of sale. Or is that too simple? ๐Ÿ˜‰

    That still doesn’t ensure it gets paid Claire.

    I don’t want anyone coming into my office in 2 years time and complaining about unpaid plusvalia.

    I also don’t want the buyer bringing that property into my office in 2 years time for sale with a charge against it.

    Quite simply, I ensure it is paid by retention and follow up the sale by getting the buyers lawyer to provide me with the payment slip at which point, along with many other details, I am happy to close the file.

  • #91813
    Profile photo of Anonymous
    Anonymous
    Participant

    I was just picking up on Fuengi’s comment ,Peter ..

    I know in some cases the buyer gets lumbered with this tax, but it should be for the vendor to pay.

    I’m not trying to teach granny to suck eggs! ๐Ÿ˜†

  • #91816
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @Claire wrote:

    I was just picking up on Fuengi’s comment ,Peter ..
    I know in some cases the buyer gets lumbered with this tax, but it should be for the vendor to pay.

    I’m not trying to teach granny to suck eggs! ๐Ÿ˜†

    I did not mean that the vendor ran off without paying.

    In most cases the 3% retencion is superior to the plusvalia, so most (in my experience) pay the tax.

    Its just as I have seen one or 2 agency contracts where it states the buyer pays the tax which might be what has happened to conn?

  • #91818
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m not sure whats going on, my contract is in Sp, I’ll query it anyhow.

    What about the rest of the charges?

    Conn.

  • #91820
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @conn wrote:

    I’m not sure whats going on, my contract is in Sp, I’ll query it anyhow.

    What about the rest of the charges?

    Conn.

    Hi Conn,

    regarding hte other costs, they are not the highest I have seen.

    Conn, you should not have signed the contract without a translation.
    Have you only signed a ‘reservation’ contract or an actual contrato de Aras/privado? (private contract)

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