- When purchasing a home, one of the necessary and important steps is the transfer of ownership.
- The property registration will validate the transfer of ownership and provide legal security for your home.
Buying a home is never an easy task, as it involves many details. From finding a property that meets your needs to understanding some of the terms used by sellers during the sale and final procedures.
However, this doesn’t have to be a problem that delays or prevents you from acquiring a house in 2024. For this reason, Coldwell Banker presents some key terms to ensure a smooth process and successful purchase:
- Down payment: One of the initial payments made when buying a home, representing a percentage of the total property value; typically ranges from 3% to 20%, as agreed upon by buyer and seller. Keep in mind, financial institutions do not cover the down payment, so you’ll need to gather the funds on your own.
- Guarantor: A person or entity that guarantees and commits to covering a loan payment if the buyer fails to do so. If the borrower defaults, the lending institution can demand repayment from the guarantor and may take legal action against them.
- Transfer of ownership: When acquiring a property, it’s essential to transfer the title of ownership to your name or that of a family member. This process is conducted before a notary public, who defines the rights and obligations of the property buyer and ensures there are no outstanding liens. Costs can vary by state and property value, typically ranging from 4% to 12%.
- Property registration: After the transfer of ownership, registering the property with the Public Registry of Property is necessary to validate the transfer and provide legal security for your home. This process takes approximately 2 to 3 weeks and costs between 13,000 and 17,000 pesos, depending on the property value and location.
- Insurance: While optional, home insurance is often necessary to protect against risks such as fires, floods, and earthquakes. Options include hazard insurance, private mortgage insurance, and earthquake insurance. Research different policies and choose one that suits your needs to safeguard your home.
- Property tax: The Acquisition Tax on Real Estate (ISAI) must be paid upon acquiring a property, whether new or used, to fund public services such as infrastructure and lighting. The amount varies by state and can range from 1% to 6% of the property value.
While you may already be familiar with some or all of these terms, staying informed about important topics like purchasing a home is crucial. We hope that reviewing and understanding these terms makes the acquisition process and overall experience less complex, ultimately helping you successfully buy your home in 2024.
Fuentes de consulta:
https://blog.vivanuncios.com.mx/bienes-raices/costos-de-comprar-una-casa
https://www.lahaus.com/blog/comprar-vivienda/glosario-inmobiliario
https://espanol.century21.com/glosario
https://www.alfamexico.com/10-terminos-de-bienes-raices-que-debes-saber-antes-de-comprar-una-casa
