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Are you thinking of selling your house to buy another one, but you don't have much money?

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&You are thinking of selling your house to buy another one, but you don't have much money?


The home exchange is your solution, as it allows the exchange of homes between two individuals without the need for money.


Although… first of all you shouldá s know whaté is to exchange a house.


The exchange of property, as set out in article 1538 of the Civil Code, is a contract whereby both parties undertake to exchange their homes. In turn, this contract differs from the purchase contract due to the fact that with the former an exchange of money is not required, while with the latter it is, as well as the fact that while with the latter it is not necessary for the two dwellings to be valued at a similar value, it is an indispensable condition for the former.


Now… ? ? how is the home exchange carried out?


How is the home exchange carried out?


First of all, you must agree on the price of both properties, and later, once you have reached an agreement, sign a deed of exchange before a notary.

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Thirdly, these deeds must be registered in the Land Registry. However, first of all, we recommend that you check that the other individual is indeed the owner of the property, as well as that he/she does not have any charges, such as a mortgage. In addition, you should request the last receipt of the IBI, to make sure that he/she does not have any debts with the community of owners, and that he/she is up to date with payments.



And... And... What would happen if the other property has a mortgage charge?


And what if the other property has a mortgage charge?


As in a exchange of property there is no monetary exchange, in the event that one of the properties ismortgaged, the value of that property will be the result of the difference between its market value, minus the outstanding mortgage. That is to say, if your property is valued at 180.000€, but you have a mortgage of 50.000€, you will only be able to opt for a house of 130.000€, and the same for the opposite case (if you want to opt for a house of a higher valuethan the result of the subtraction that we have been discussing, you will have to make an exchange contract together with a purchase contract).


In addition, before finishing, we must comment that firstly, the exchange of a mortgaged property, will not make this charge disappear, but rather a change of owner or even, if necessary, of entity. Secondly, you will also have to face other expenses in the form of taxes, such as the Transfer Tax, the municipal capital gains tax, or the personal income tax difference.

Secondly, you will also have to face other expenses in the form of taxes, such as the Transfer Tax, the municipal capital gains tax, or the personal income tax difference.