When several people jointly own a property in shares, if the parties agree to remove their names from the Deeds in order to keep the property in just ONE name, it is necessary to sign a new title deed.
The best way to do this is by making a Dissolution of Community/Joint Ownership (because the Tax liability is lower than the one for a Re-sale or a Donation tax). In dissolution of community, the owner keeping the property compensates the people getting out of the Deeds for the net value of their particular share. To calculate the net value of each share we need to know the value of the house (usually the value in the former Deed of Purchase), to discount any encumbrances (mortgages, etc…) and to split the balance between all shareholders.
To complete this transaction ALL the current owners must sign the dissolution Deed, so if any of you cannot come to Spain, MAM Solicitors can prepare a Power of Attorney which can be signed in your country before a local notary public. Please contact us to check our current tariff of fees. Our fees include the following services:
- Coordinating everything for completion at the notary.
- Payment on your behalf of the corresponding taxes and taking care of the registration of the new title deed.
- Cancellation of direct debits and setting up new standing orders for utilities.
As for taxation, there will be a 1.2 – 1.5% STAMP DUTY on the total value of the property.
Next section: Selling your house >>