Post by asadul7172 on Feb 15, 2024 12:45:12 GMT 2
When you want to move to another home , what typically happens is you sell your first home to get the money to buy your second home . However, there is another option to purchase a brand new home without going through a sale and subsequent purchase . This is a house exchange , an operation where two people exchange property without or with any financial considerations ( if one of the two houses is worth much more than the other ). The basic condition for home exchange between individuals is to own a home, so buying the first home is not valid. On the contrary, it can be a good choice in certain situations, such as when you need to change your address due to a city shift . In this case, an exchange allows you to exchange your home for another home in your new destination without incurring the costs of purchasing a new property . At Oi Realtor , we will tell you everything you need to know if you are considering replacing your home. In this article you will find : What is a house swap ? How does exchanging houses work? Home Exchange Fees Can a house be exchanged for a mortgage ? What is a house swap ? Article 1,538 of the Civil Code defines exchange as “a contract whereby the parties undertake to give one thing in order to receive another thing .” When it comes to home exchange , what is being exchanged is the house they have to own . An exchange differs from a sale in that there is no sales price. In principle, house exchange only exchanges assets and does not involve money .
Therefore , the two homes being exchanged must be of similar value . However, if one property is worth more than the other , the parties can agree to pay a certain amount as compensation . In this case, the total value of the currency plus the property must not exceed the total value of the other property to continue to be considered an exchange . exchange house How does exchanging houses work? The first step in a home exchange is for the owners to agree on the value of the property . If both parties accept the value , an exchange contract containing operating conditions must be signed . A deed of exchange must then be signed in front of a notary to transfer Nigeria Email List ownership of the house . The deed must be registered with the Property Registry . When transferring a property , both owners must hand over the keys and documents to both houses . However, before exchanging a house, you must check who the owner is and whether they have any fees ( mortgage, etc.). To do this , you must ask for a simple statement from the property registry , the last IBI receipt to see if you paid on time, and a certificate from the owner community confirming that there are no outstanding debts . After the house is exchanged , if there are hidden dangers in the house, the original owner will bear the responsibility . Furthermore , the exchange contract can be terminated if hidden defects arise or if it is subsequently proven that one of the owners does not own the property . Article 1,540 of the Civil Code provides that an affected exchanger may choose to claim damages or to demand the recovery of property delivered to another exchanger . Home Exchange Fees One of the great advantages of home exchange is that it is cheaper than buying and selling . First, you must pay the notary and registration fees for the exchange of deeds , which are calculated based on the agreed price of the property.
Regarding the taxes levied on the exchange, you must pay the property transfer tax ( ITP ) corresponding to the autonomous region in which the house is located ( ranging between 6 % and 11 % ) as well as the document legal practice tax on notarized documents. For taxes. You 'll also have to pay land appreciation tax , the so-called municipal capital gains tax, which taxes the revaluation of the municipal land your home sits on from the time it's purchased to the time it's transferred . Finally, capital gains or losses must be reported on your personal income tax return and apply to the difference between the home's acquisition value and the value established in the exchange . Can a house be exchanged for a mortgage ? Yes, it is possible to exchange a home with a mortgage . Of course, whether one property or two properties are mortgaged, approval from the bank is required , and the bank must recognize the change in loan owner . To do this , financial institutions must verify the new owner's ability to pay the mortgage before approving operations . Effectively , when you exchange a home , the owner of the home changes , but the bank still owns the mortgage on the home, and now the home has another owner. When performing a house replacement or mortgage , the following solutions can be proposed based on the solvency and repayment capacity of the new mortgage holder : A novation is made to change the owner of a mortgage loan . Take out a new mortgage so that the new owner of the house becomes the owner. If the financial institution does not accept the change of mortgage holder , change the mortgage to the financial institution ( subrogation). Finally, in the case of a mortgage , you must also take into account the higher costs of exchanging your home, as the costs of mortgage renewal , cancellation, or signing a new loan must be added to the operating costs. Likewise , in order to promote house exchange , there are also websites dedicated to this market , such as sepermuta.es , since one of its main difficulties is to find a property of equal value to exchange.
Therefore , the two homes being exchanged must be of similar value . However, if one property is worth more than the other , the parties can agree to pay a certain amount as compensation . In this case, the total value of the currency plus the property must not exceed the total value of the other property to continue to be considered an exchange . exchange house How does exchanging houses work? The first step in a home exchange is for the owners to agree on the value of the property . If both parties accept the value , an exchange contract containing operating conditions must be signed . A deed of exchange must then be signed in front of a notary to transfer Nigeria Email List ownership of the house . The deed must be registered with the Property Registry . When transferring a property , both owners must hand over the keys and documents to both houses . However, before exchanging a house, you must check who the owner is and whether they have any fees ( mortgage, etc.). To do this , you must ask for a simple statement from the property registry , the last IBI receipt to see if you paid on time, and a certificate from the owner community confirming that there are no outstanding debts . After the house is exchanged , if there are hidden dangers in the house, the original owner will bear the responsibility . Furthermore , the exchange contract can be terminated if hidden defects arise or if it is subsequently proven that one of the owners does not own the property . Article 1,540 of the Civil Code provides that an affected exchanger may choose to claim damages or to demand the recovery of property delivered to another exchanger . Home Exchange Fees One of the great advantages of home exchange is that it is cheaper than buying and selling . First, you must pay the notary and registration fees for the exchange of deeds , which are calculated based on the agreed price of the property.
Regarding the taxes levied on the exchange, you must pay the property transfer tax ( ITP ) corresponding to the autonomous region in which the house is located ( ranging between 6 % and 11 % ) as well as the document legal practice tax on notarized documents. For taxes. You 'll also have to pay land appreciation tax , the so-called municipal capital gains tax, which taxes the revaluation of the municipal land your home sits on from the time it's purchased to the time it's transferred . Finally, capital gains or losses must be reported on your personal income tax return and apply to the difference between the home's acquisition value and the value established in the exchange . Can a house be exchanged for a mortgage ? Yes, it is possible to exchange a home with a mortgage . Of course, whether one property or two properties are mortgaged, approval from the bank is required , and the bank must recognize the change in loan owner . To do this , financial institutions must verify the new owner's ability to pay the mortgage before approving operations . Effectively , when you exchange a home , the owner of the home changes , but the bank still owns the mortgage on the home, and now the home has another owner. When performing a house replacement or mortgage , the following solutions can be proposed based on the solvency and repayment capacity of the new mortgage holder : A novation is made to change the owner of a mortgage loan . Take out a new mortgage so that the new owner of the house becomes the owner. If the financial institution does not accept the change of mortgage holder , change the mortgage to the financial institution ( subrogation). Finally, in the case of a mortgage , you must also take into account the higher costs of exchanging your home, as the costs of mortgage renewal , cancellation, or signing a new loan must be added to the operating costs. Likewise , in order to promote house exchange , there are also websites dedicated to this market , such as sepermuta.es , since one of its main difficulties is to find a property of equal value to exchange.