A Real estate exchanges is one of the services we offer in Fincas La Clau and a really effective resource in many cases where you want to change ownership or can not cope with the mortgage debt, to give a couple of examples.
What are the Real estate exchanges?
A real estate exchanges is nothing more than an exchange of property between two owners. It is a very simple and basic way to define the concept but, in the end, it is what it really consists of. The swaps require a contract so that the exchange (or double purchase-sale process) is legal for all purposes. The advantages of this are:
- Security. With it, the risks inherent in conventional buying and selling processes are eliminated. You are going to buy at the same time that you are selling your property so you make sure you keep having a home after making your sale.
- Economic price. With this opportunity, you avoid resorting to the bridging loans offered by financial institutions and that are so exorbitant in interest.
In the same way, you are going to reduce the Patrimonial Transfer Tax, which is the largest part in terms of expenses derived from a property purchase and sale.
Real estate exchanges between individuals
This resource is ideal in several cases:
- When you can not afford a mortgage loan. You can opt for a property of lower value to yours to receive some capital or negotiate the debt with your buyer.
- You are interested in a different type of property. The double purchase-sale can be made between all types of real estate. Some examples are those of people with land that does not have resources to build or elderly people with large flats that prefer to go to a smaller one and better located.
- Simply if you want to change your home and you do not care about keeping your own or prefer to sell it to avoid costs.
Tax on Real estate exchanges
There are two taxes to take into account in this type of transaction.
- On the one hand we have the Increase in the Value of the Land (what we know as Goodwill). This is a lien for the benefit that has been obtained from the property over the years. You will pay for the difference between the value of this when it was last purchased and the current value, provided that the latter is higher.
- On the other, we have the Patrimonial Transfer Tax. This is very variable; from 2.5% of the value of the property in special cases in Álava to 10% that is taxed in Andalusia, Valencian Community or, in some cases, in the Balearic Islands and Cantabria.
JCB Abogados, in this video of their YouTube channel, explain in detail what is the surplus value or the tax on the increase in value of urban land:
Real estate exchanges in different CC.AA
With an increasing number of Spaniards with their own homes, the swaps, as well as the rest of transactions with properties, increase. Especially interesting is this exchange between CC.AA, because you have the possibility to change completely airs and lifestyle without having to invest for it.
There is no problem in doing so. The only thing that should be taken into account is the payment of taxes, which may be different in each of the places, having to be borne by the buying party in each Community.
Real estate exchanges of properties and mortgages
If one of the properties to be exchanged has a mortgage, the new owner can subrogate it, cancel it or reach an agreement with the seller; this does not condition the transaction.
If both properties are pending release due to a mortgage burden, only each owner will have to subrogate the loan of their new home.Share