We explain which procedures can be carried out (and which ones you'll have to postpone) while buying property during the State of alarm.
Since the State of alarm came into effect, real estate transactions seem to have been paralysed in our country. Although technically the State of alarm doesn't forbid property transactions, the truth is that in practice the situation makes it very complicated.
Which real estate procedures can be carried out during a State of alarm? Which formalities will have to be postponed? In this article, we'll clear up all the doubts regarding purchasing property in times of Coronavirus.
Visits to the Notary
Visits to the Notary are limited to urgent cases. Under the New Mortgage Law, the buyer has to visit the Notary twice: once to be informed on all the relevant clauses of their contract and again to sign the Title Deeds. This double Notary visit requirement makes transactions take longer than usual.
To find out whether we can still go to an appointment we had already booked or see if we can book a new one, we'll need to contact the Notary. It's up to them to decide, depending on the characteristics of the transaction, whether the operation can be classed as urgent.
Visits to the bank
The same occurs with mortgages. Banks are currently only opening their doors, with prior appointments, to deal with urgent matters, which do not include granting of mortgage loans. At the moment, the only mortgages being signed are those that had already been agreed upon before the State of alarm was announced.
This is a very important point, especially bearing in mind that 70% of all transactions in our country require financing.
As you can imagine, property viewings are restricted. Developers, agencies and agents who have worked on their multi-media content to promote their properties currently have the upper hand here.
Although a buyer will always want to visit a property in person before making the final purchase decision, they can get ahead on the purchase process by viewing videos of the property on their computers, infographics of each of the rooms, 3D recreations, plans...
At Modern House we have already done a lot of that work as we're used to dealing with clients from abroad, meaning working from a distance is already essential.
How to progress with the purchase process?
While visits to the Notary, the bank or properties themselves have become complicated, buyers have hundreds of options available to continue progressing in their purchase processes.
Buying a property is a long process that can take months. The more that can be done during the quarantine period, the better prepared we will be to complete the transaction when things get back to normal.
These are some of the things a buyer can get ahead with:
- Information on the costs and taxes involved in the transaction.
- Identification of the basic needs the property must meet.
- Definition of a purchase budget.
- Examination on the Internet of properties that meet the requirements.
- Information on the agencies and developers that provide services in the area.
We know that these are difficult times, but the last thing you should do is give up. You can make the most of your time at home to look for all the information you had been putting off due to a lack of time.
At Modern House, in collaboration with all our real estate agents, we remain available for our clients 24 hours a day offering our services by telephone, whatsapp or email.
Here is a purchase guide which we hope will be useful to help you continue progressing towards the purchase of your new home.