October 23, 2007 at 7:50 am #53421
I am looking to sell my apartment in the near future and wondered if anyone could give me their advice or share their experience as I’ve been having a few problems with the developer from which the apartment was bought.
Basically a contract of sale has been signed by both the developer and me and all payments have been made. I also have a signed receipt as proof of purchase and full access to the apartment. However, the ‘Escritura’ has not been signed as the developer keeps stalling and the property has not been registered in my name yet.
Can I still sell the property now or do I need to complete signing of the Escritura and registration first?
I have been told that if I sell before signing the Escritura and registration this will reduce the amount of tax I pay. Is this right?
If I try to sell it now what sort of problems may I encounter? Could this affect sale value for instance?
Is there a time limit for signing the Escritura and registration?
Thanks for any advice
October 23, 2007 at 3:13 pm #75768
Was this an off plan purchase? Do you have the licence of fist occupation or any other document other than your private purchase contract? Is the property built and finished?
Why have you not been to notary if you have paid all the money for the property? Normally the last payment would be made at notary when you sign the escritura and take posession.
You can sell on a private purchase contract, but you are liable for 7% transfer tax with the new buyer paying 7% purchase tax. Also if you made any profit – you will be liable for capital gains tax.
Might be an idea to ask these questions to your lawyer for clarification.
October 24, 2007 at 4:58 am #75776
Thanks for clarifying the tax bit. It was an off plan purchase but I’m not aware of having received a licence of first occupation. Basically the whole purchase was a bit of a ‘cockup’. Lacking in knowledge & experience and trusting the introducing agent (who was supposed to be a good friend of a good friend of mine) I signed the contract on the spot in a fit of lunacy. I’ve talked with 3 lawyers subsequently but they all seemed to ‘drag their feet’. The last one moved office without notifying me and hasn’t been found since.
Apart from the receipt for payment in full I don’t really have any thing else. I know this sounds ridiculous but I just paid the instalments according to the agreed payment schedule not knowing the last payment should be with-held until signing of the Escritura, none of the 3 lawyers explained this to me either.
As I said before I have full access (about 2 yrs now). Utilities are in my name, the community is aware of me being the owner and I’ve paid all local taxes, it’s just that the builder, although very polite, keeps dodging me and the lawyers I’ve spoken to in the past have not been upfront with me regarding the fact that I had a problem.
If I can sell without signing the Escritura and Registration then I will probably just do that but if I can’t then I need a good lawyer who will be upfront in explaining exactly what needs to be done, will move quickly and is not just out to get my money. Any first hand recommendations (Torrevieja – Cost Blanca area) would be appreciated.
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