Calculate the additional expenses and mandatory fees involved in buying a property. Estimate amounts of ITBI (property transfer tax), deed fees, registration fees, and bank charges.
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Many first-time buyers only plan for the down payment and financing, but are surprised by the mandatory bureaucratic expenses when closing the deal. It's recommended to reserve 4% to 6% of the total property value to cover these costs.
Article 290 of the Public Records Law guarantees that first-time homebuyers who finance their property through a bank have the right to a 50% discount on notary fees for registration and deed. The buyer must request this discount in writing to the notary public before the payment due date.
Yes. Most banks in the US allow you to include ITBI, notary fees, and appraisal costs in the total loan amount, as long as the total amount does not exceed the approved credit limit and the income commitment margin (usually up to 30% of the family income). This helps reduce the initial cash required for the purchase.
A deed formally legalizes the sale between the parties (performed at the Notary Public's office). Registration formally transfers the property ownership to the buyer's name (performed at the Property Registry Office). A popular saying summarizes: "If you don't register, you're not the owner". A deed without registration does not guarantee property ownership.
No. The 50% discount applies specifically to properties financed through a bank. The bank has limits on the property value that are periodically updated by the government (currently the property value limit is $1.5 million in the US). Properties outside of this limit or cash purchases do not qualify for this legal benefit.