Transferring a property to one name -Termination of co-ownership in Alicante Torrevieja Spain

How to remove somebody off the title deeds in Alicante, Torrevieja or Costa Blanca?

If you are thinking of transferring the ownership of your property to the other co-owner or transferring the apartment or house to your sole name, you should know that it is simple. In order to change your title deeds only in one name, you and the other owner will have to go to the notary to make the transfer with your Spanish solicitor. This transaction is called “extinción de condominio” which means the termination of the co-ownership when the property is transferred only to one name.

The tax to pay is only the 1.5% of the total value of the asset instead of the regular transfer duty of the 10% in the Alicante, Costa Blanca an Torrevieja area.

If you are transferring the apartment or house due to a divorce agreement, we will have to study the specific clauses in your settlement and find the best solution.

Let us summarize the key points of the concept of condominium or co-ownership and the two main ways it can be terminated:

Condominium or Jointly owned house: This is a legal arrangement where two or more individuals share ownership of an asset, such as a house, car, boat, or bicycle.
Extinction of Condominium or Dissolution of Community: This refers to the termination of the jointly owned house or community arrangement. There are two primary ways this can happen:
Sale to a Third Party: Co-owners decide to sell the shared property to a third party. This terminates the joint deeds, but it’s not an extinction of the condominium itself; instead, it results from the transfer of ownership to a new owner and a simple sale.
Full Adjudication to One Owner: Co-owners agree that one of them will take full ownership of the home while compensating the other co-owner for their share. For example, in the case of a couple or marriage splitting up or after a divorce in Alicante, Costa Blanca, Torrevieja or separation and one partner keeping the house by compensating the other for their portion, this is considered an extinction of condominium in the true sense.

These two methods of terminating joint deeds have different legal implications, and it’s essential to distinguish between them when dealing with asset division. The choice between these options often depends on the specific circumstances and agreements between the co-owners.

What are the rules for property ownership ? How do I change the name of my property in Alicante, Torrevieja Spain?

Certainly, let’s explore the fiscal implications of dissolving or extinguishing jointly owned assets from a practical standpoint, using a real example to illustrate the process. The fiscal implications can vary depending on your jurisdiction, so it’s important to consult with a solicitor or attorney familiar with local laws. Here’s a general outline of the fiscal considerations:

Real Example: Dissolving Jointly owned House

Suppose a married couple, John and Jane, jointly own a house and decide to dissolve their jointly owned home . John will keep the house, and Jane will be compensated for her share. Here are some fiscal considerations:

Transfer Tax (ITP): In many jurisdictions, when property changes ownership, there will be a property transfer duty when sold to a third party. However, in the case of divorce or separation, or when the property is transferred to a sole owner, the amount to pay in the Valencian community is the 1.5% of the value of the dwelling.
Capital Gains Tax: If the asset has appreciated in value since its purchase, there may be capital gains fiscal implications when sold to a third party but not when the deeds are put only in one name after the transfer.
Legal and Notary Fees: The process of dissolving changing the deeds to one name typically involves legal and notary fees for drafting and executing the necessary agreements and documents. These fees are usually borne by the parties involved.
Mortgage Considerations: If there’s an existing mortgage on the dwelling or apartment, John may need to refinance the mortgage in his name alone or negotiate with the lender to remove Jane from the mortgage. Mortgage-related costs, such as refinancing fees, should also be factored in.

It’s essential to consult with a solicitor or lawyer who specializes in property transactions and family law in Alicante or Costa Blanca area or Torrevieja. They can provide guidance tailored to your specific situation, ensure compliance with local laws, and help you navigate the process of dissolving the condominium. Additionally, they can assist in preparing the necessary legal agreements to document the transfer of to one name and compensation between the co-owners.

CC Lawyers Alicante is your trusted law firm in the Alicante area.

Please contact us if you have any legal matter that needs to be checked by a Lawyer in Alicante.