Before purchasing a property it is necessary to check in the Land Registry to see if it has any outstanding debts to be paid.

Once decided on which property to buy the next decision will be on how to finance it. The purchase can take place with the person's savings or financed by the bank which is called a mortgage. This mortgage-loan must be written in public deeds and inscribed in the Land Registry.

The mortgage loan can be basically a fixed rate or variable. The main advantage of the fixed rate is that the amount remains the same during the loan lifetime. The variable rate has the advantage of reeping benefits with the lowering interest rates.

The most important expenses of the mortgage loan are:

1. Formalising the loan and taxes.

2. Inscription expenses at the Land Registry.

3. Notary Expenses. Notary fees for the public deeds.

4. Management Fees for the transaction of the deeds.

5. Evaluator Fees. This is compulsory and is carried out by an expert pertaining to an official company. This person will value the property.

6. Bankers expenses. Amongst these are, the opening commission which is a percentage that the bank charges only once at the beginning of the mortgage, and the endorsement commission. The latter takes place when a house that is being bought already has a mortgage and the new purchaser continues to pay the mortgage, after having applied for a new one.

7. Insurance. The Law stipulates that one must take out a fire insurance.

8. Taxes:

Transmission Tax (6% of the declared value in the deeds).

Plusvalue tax (tax paid on the value increase of the land). This varies in accordance with the house charateristics and the region in which it comes under. The vendor is the one is legally obliged to pay this tax unless otherwise agreed.