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Advice on choosing the title holder (owner) of a dwelling
(July 2008)
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The choice of the title holder or holders of a dwelling - that is, the persons who will sign the private contract of sale and mortgage loan - is an important decision that the parties involved in the purchase should consider carefully.
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If the property is being acquired by a single person there's no problem, but if there are to be two or more owners it becomes necessary to take into account the legal system under which they come before signing the contract. |
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Generally speaking, the title to the property should be embodied in the private contract of sale and in the deed of sale, as well as in the loan application and in the public mortgage deed.
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In this way, it will also show in the Land Register once all the formalities have been completed. If, at the end of the day, several individuals are the title holders, it's necessary to set out to what extent each one is so.
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For example, the title holders can acquire the dwelling as a jointly-owned property or as one owned by indivisible half-shares.
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Now then, why is it important to bear this ownership in mind? Let's see how being the title holder of a dwelling has an influence in different situations. |
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a. Modification of ownership. Once the contract has been signed, changing the title holders of a dwelling may entail a high financial cost, because it will require a series of administrative formalities and will mean that the contract will have to be placed on public record again. |
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| b. Deduction on the basis of investing in one's usual home. The title-holders of the dwelling will be able to claim a deduction on the basis of investing in their usual home on their Income Tax returns. |
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| c. Separation or divorce. The ownership of the dwelling will be decisive in realizing the assets held under the marital property system. |
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| d. Financial help for publicly assisted housing. Ownership is key to checking the fulfilment of the necessary requirements for receiving the available financial help for buyers of publicly assisted housing. |
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In brief, it's advisable to refer the matter to a solicitor or expert and to consider the most suitable ownership with him or her. |
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