Licencia de Primera Ocupación? Nota Simple? Plusvalía? Catastral? Escritura? PPC?
Licencia de Primera Ocupación? Nota Simple? Plusvalía? Catastral? Escritura? PPC?
These common real estate terms will become even more familiar as you begin to navigate the property market in Andalucía, but what do they mean?
LPO (First Occupancy License)
LPO, or First Occupancy License, is a legal document issued in Andalusia. It confirms that a property has been constructed in accordance with approved plans and meets all necessary regulations and standards. If you intend to rent out your property, this document is essential.
Nota Simple (Property Registration Document)
The Nota Simple is an official document that provides vital information about a property in Andalusia. It verifies ownership, legal status, physical details, and any registered charges or limitations on the property.
Plusvalia (Capital Gains Tax)
Plusvalia refers to the municipal tax on the increase in the value of urban land during its transfer or sale. The tax calculation considers factors such as plot size, ownership period, and local tax rates. It’s important to note that the Plusvalia tax is generally the responsibility of the seller or transferor of the property.
Cadastral (Unique Property Registration Number)
Cadastral refers to the system of land registration and property identification. It assigns a unique reference number to each registered property, facilitating legal ownership verification and property-related transactions. In Andalusia, the Cadastral system plays a crucial role in property taxation, urban planning, and land management.
Transfer Tax (ITP) and IVA (VAT)
Transfer Tax, or ITP, applies to property transfers in Andalusia. Rates vary based on property type and value. New properties subject to VAT have a reduced ITP rate to avoid double taxation.
I.R.D. (Initial Reservation Deposit)
The Initial Reservation Deposit, or I.R.D., is a commitment deposit made by property buyers in Andalusia. It secures the property for a specified period, demonstrating the buyer’s intention to proceed with the purchase.
P.P.C. (Pre-Purchase Contract)
A Pre-Purchase Contract, or P.P.C., is a legally binding agreement that establishes the terms and conditions of a property purchase before the final deed is signed. It covers key aspects such as property details, purchase price, and completion date.
Escritura (Title Deed)
The Escritura is the legal document that transfers ownership of a property in Andalusia. It establishes ownership rights, contains property information, and is signed by the buyer, seller, and a notary public.
For a more in depth look and detail on any of the above common real estate terms, information is available upon request.
Armed with this knowledge, you’re now ready to navigate the world of real estate in Andalusia with confidence.
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