by Jesus Barrena 
News about prices Sale of flats and their increase due to the IPC
Download Model of Deposit Contract (CURRENT) of Sale
Contents
How to understand the rise in rent with the CPI?
The CPI has risen in May by 0,8% in May, compared to the previous month, reaching 8,7%.
The reasons are the rising cost of gasoline and food.
As for the Urban Leasing Law (LAU), it regulates issues related to renting in Spain.
Determine how the rental price of a home should be increased.
The LAU does not specify what should be the index that should be used to update an income.
When the lease contract is not agreed upon, the Competitiveness Guarantee Index (IGC) will be used.
The most common is to use the Consumer Price Index (CPI).
In 2022 the increases have been many, with a trend that began at the end of 2021 and that has been accelerated by the war.
The month of May 2022 the IPC has risen to 8,7%.
It has been decided to temporarily limit the increase in rental prices to a maximum of 2% from April to June 2022.
What is the IPC, how is it calculated and how does it influence the sale of flats?
The CPI or Consumer Price Index is an indicator that measures the impact of the increase in the prices of consumer goods.
The CPI is positive means that prices have risen, and if it is negative, they have fallen.
According to the National Institute of Statistics based on the prices of the products most consumed by Spaniards, what is called "the shopping basket".
How is the rental income updated in relation to the CPI?
In Spain, the CPI is usually used to regulate the rise in income.
When the value of that month is positive, the rent will increase, while if it is negative, it will go down. The increase should only be done once a year.
When updating the rent, you must consult the CPI value on the INE website and apply the increase or decrease, if applicable, based on the CPI value two months before the contract meets the annuity , since the official data is usually published on the 15th and every month.
Once calculated, the tenant must be notified one month in advance of the day on which it is time to pay the following monthly installments.
How to understand the rise in rent with the CPI?
In a practical example, a house that we rent for 1.000 euros per month, its contract is one year old on June 1.
We have to communicate the increase in the monthly payment on June 1, which will mean that we have to calculate the rent increase with the CPI published on December 15.
The value of the CPI in May 2022, which is the one we will apply, was 8,7%. To the current 1.000 euros of rent we must add this 8,7% more, so the rent will increase by 87 euros.
We must repeat the same procedure, until the end of the lease.
The rental price of a home is determined by several factors, one of which is the CPI, which we already know how to calculate.
The notary in a sale of flats
The notary is an official who gives a public character to all types of documents, ensuring that current legislation is complied with. His presence is not mandatory when buying and selling flats, but essential when signing your mortgage. but
¿ who pays notary fees in a sale? The Civil Code establishes that the costs of granting deeds will be paid by the seller. While those of the first copy and after the sale will be at the buyer's expense, unless otherwise agreed.
Article 1455 of the Civil Code establishes that the costs of writing, in which the presence of a notary is necessary, must be assumed by the purchasing party. In addition, notarial services have a price regulated by law. They can vary between €600 and €875, depending on the home and its location. It is also very important to add that if there is a sale of a parking space, the notary expenses are assumed by the buyer.
