You may be thinking about buying your own home. Making the transition from renting to homeownership isn’t always easy, and you might feel like you’re skipping some steps. To clear up any doubts, Culmia has put together this guide that will walk you through all the steps you need to take to successfully buy a home.

1. Choose the right area and set your budget

Although it may seem like one of the most obvious steps, when starting your home search , you should carefully consider your priorities— both in terms of the area you’re looking in and the budget you have to invest in this new property. And keep in mind, based on this, what the costs associated with the purchase will be.

In this regard, you should verify that prices have been set in accordance with current laws. Likewise, make sure that the price to be paid is documented in writing at all times.

2. Verify that the property is vacant

Once you have chosen the home you want to purchase, and before you begin the paperwork, you must make sure that the property in question is free of any liens or encumbrances. The Land Registry can provide you with this information.

The document must include information such as the identity of the person—whether an individual or a legal entity—who has full ownership of the property, a confirmation that no real property rights encumber the property that would limit the right to ownership, and that the property is, in fact, free of encumbrances or liens, such as a mortgage or a seizure.

3. Make sure all payments on the property are up to date

In addition to verifying that the property is fully available for purchase, another important point is to ensure that the property in question is up to date on all payments, such as homeowners’ association fees. Otherwise, the law stipulates that, in certain cases, the owner is responsible for covering those costs.

4. Seek advice on the earnest money contract

In any real estate sale, a deposit agreement is drawn up prior to the transfer of ownership . This type of contract not only establishes the down payment prior to the purchase to confirm both parties’ interest in the transaction, but also serves as a safeguard in case one of the parties decides to back out of the sale. It is very important to seek advice when signing this contract, since it ensures that you can feel secure about paying this deposit and that, if something goes wrong during the process, everything will proceed in accordance with the law and with respect for the rights of both parties.

5. Explore all financing options

If you’ve already decided on your next home and need financing to purchase it, it’s important to explore all your options. Banks are currently required to provide customers with the Standardized European Information Sheet (FEIN), a document that outlines the main terms under which the bank grants the mortgage.

In addition, they must also provide you with the Standardized Disclosure Statement (FAE), which lists the main terms of the mortgage in question. You’ll likely find information in these two documents that isn’t easy to understand, so—just as in the previous step—it’s a good idea to seek expert financial advice to make the right decision.

6. Sign the legal documents before a notary

Once you have completed the previous steps, it’s time to sign the purchase agreement and the deed of transfer for the property. To ensure everything is done correctly, it’s best to have the signing take place before a notary. In addition to these documents, you’ll also need to provide the property’s Energy Performance Certificate in order to complete the transaction.

7. Payment of taxes and registration with the Land Registry

Finally, you must be up to date on paying the taxes associated with the sale, such as the Property Transfer Tax. In addition, you must complete the necessary registration with the Property Registry so that the new owner of the property in question is officially recorded.

Once you’ve successfully completed all these steps, you’ll be ready to receive the keys to your new home. Enjoy it!

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