7 Details on what to look for before buying a Used Home

Starting the search for the ideal home takes time and effort to find the right one, and more if it is used the property. How to make this decision?

The process to follow to buy a used house should not be taken lightly. On the contrary, you must inform yourself of every detail about your past and current situation to be certain of making a good investment.

Here we share the priority aspects to evaluate so that you choose well:

1. Financial debts.

To know if the property has financial problems, it is necessary to request a certificate of mortgages, liens, and prohibitions at the Real Estate Conservator. This document provides information about liens such as:

• Mortgages
• Easements.
• Usufructs
• Embargoes

2. Legitimate owner.

It is only the owner of the property who has the right to sell it, either by himself or with the help of an intermediary (such as a real estate agent).

To know who the owner is, request a valid domain certificate at the Real Estate Conservator where the property is located; It is a document that delivers this information from the registration of the Property Registry.

3. Payment of contributions.

The real estate pays a territorial tax according to the tax appraisal unless it is exempt from the payment of contributions.

To corroborate that the house for sale is up to date with this payment, ask for a certificate of debt for real estate contributions, detailing the unpaid contribution fees or certify that there are no debts. You can request it from the General Treasury of the Republic.

Similarly, to confirm that the property is tax-free, request a tax assessment certificate in person before the IRS.

4. Expropriations.

Expropriation is an act of the State, using which it can deprive a person of his domain over a certain good, in this case, of his property.

A non-expropriation report lets you know whether or not the house is affected by this type of works of the Road Administration.

This document is issued by the municipalities and Served of each region and, in special cases by the Ministry of Public Works.

5. Real value.

To make sure that the sale price is the real one, you should know the commercial appraisal of the property.

If you also want to find out the tax appraisal, access the tax appraisal certificate, a report that establishes the economic value that the Internal Revenue Service (IRS) has assigned to the asset. It is a document that discloses, in addition to the monetary value, general information about the property, such as:

• Site address.
• Name and RUT of the person registered as the owner in the files of the IRS.
• Destination of the property.
• Condition of affection or exempt to the payment of contributions (Territorial Tax).

6. Additional expenses.

The costs involved in the process of buying and selling a used property are mainly:

Financing

Whether with mortgage credit or residential leasing, the associated costs are:

• Cost of the appraisal: operation performed by an appraiser designated by the institution that grants the loan intending to establish the reference value of the home.
• Stamp and stamp tax: corresponds to 0.8% (in homes with DFL2 is 0.2%) of the value of the mortgage loan. In the case that it is social housing, the property is exempt from this tax.
• Study of titles: a legal analysis of the property carried out by the banking institution to verify that the title deeds of the property are subject to the law.
• Compulsory insurance of relief and against fire or earthquake: the buyer can contract them with the institution that finances his mortgage loan or with the insurance company of his choice.

Notary

The necessary procedures before a notary to finalize the sale under the legal framework are:

• Formalization of the promise of sale: the total cost is divided between the seller and buyer, the signatures of the draft deed and the subsequent final signature of the property.
• Registration of the new owner in the Conservator of Real Estate: it has a cost that varies between 0.2% and 0.3% of the value of the property plus the fees for certificates, notes, copies, etc; if it also includes a loan, 0.2 or 0.3% must be added, on the amount of the loan, plus certificates, notes, copies, etc. On the other hand, if the purchase of the home is through leasing, you do this process only when the last installment of the dividend is finished.

7. Physical characteristics.

Unlike a new house, a used one is more likely to have damage to its construction and facilities. To know your physical condition it is not enough just to look at photographs, it is necessary to visit it personally.

Go through each of its spaces and corners to see how optimal your living conditions are if it will be necessary to invest in repairs or everything is in order.

Look at everything to choose well

Buying a used house requires a rigorous study process, since being a property with history you must know its situation before being its new owner.

If you require it, ask for the advice of a real estate agent or lawyer to check that everything is in order and carry out the necessary procedures to sign the contract of sale.