What does it consist of?
It is the notarial document that records an agreement of wills where a banking entity usually makes a fixed amount of money available to a person, which must be repaid together with interest through periodic payments within a determined period of time. The person receiving the money guarantees repayment to the bank by offering as collateral a real estate property they own.
Types of mortgage procedures
Mortgages
Contracts in which a person guarantees the payment of a debt or obligation with an asset, generally a property. In case of default, the asset may be auctioned to satisfy the debt. They allow financing for various needs. The mortgage holder has the right to choose the notary who will advise them.
Mortgage cancellations
These consist of certifying in the Property Registry that a mortgage debt has already been satisfied so that it no longer appears as a burden. This requires settling the corresponding taxes and registering the cancellation in the Property Registry.
Novations and subrogations
These are modifications of a mortgage that may involve changes in the mortgage debtors, the creditor entity, the term, the capital, or the interest rate, among others.
Preliminary deeds of material transparency
These are notarial procedures related to consumer mortgages, where the client can discuss the terms of the mortgage with the notary calmly and without pressure. This notarial act is free of charge and only involves the client and the notary.
Deed in lieu of foreclosure
These are contracts in which an asset is delivered in exchange for the extinction of a previous debt, thereby releasing the debtor.
Required documentation
Mortgages
Identification document (DNI, passport, NIE, or residence card) of the mortgage applicants, or documents certifying the legal personality and representation of legal entities.
Title of ownership of the mortgaged property or a certificate from the Property Registry.
In certain cases, such as consumer mortgages, it is necessary to have processed a preliminary deed of material transparency.
Mortgage cancellations
Full payment of the mortgage.
Certificate from the financial institution confirming payment of the mortgage debt.
At the signing before the notary, only the representative of the financial institution attends, who must prove their powers of representation according to the general rules.
Financial details of the operation.
Deed of constitution of the mortgage or of the resolutory condition.
DNI of lenders and borrowers.
If a company is involved, powers of attorney or current appointment of administrators.
Registration details in the Commercial Registry.
Cadastral reference (latest IBI receipt).
Indication of whether or not the property is rented.
Novations and subrogations
Generally, both the financial institution and the current borrowers must sign. This involves presenting identification documents (DNI, passport, NIE, or residence card) for individuals, and documents proving legal personality and representation for legal entities.
In certain cases, a preliminary deed of material transparency is required, which is free of charge.
Preliminary deeds of material transparency
FEIN (European Standardised Information Sheet).
FIAE (Standardised Warning Sheet).
Copy of the draft mortgage deed contract.
Periodic instalments in fixed-interest loans.
Conditions of contracted insurance or linked products offered by financial institutions.
Costs of the future mortgage transaction.
Document proving that the client has the right to notarial advice before signing the mortgage deed.
Deed in lieu of foreclosure
Identification document (DNI, passport, NIE, or residence card) of the applicants, or documents certifying the legal personality and representation of legal entities.
Title of ownership of the property subject to dación en pago.
Identification of the debt that will be settled through the dación en pago.
For mortgage loans and debt acknowledgments
Financial details of the operation.
Property titles of the estates to be mortgaged.
DNI of lenders and borrowers.
Marital property regime of both parties.
If a company is involved, powers of attorney or current appointment of administrators.
Registration details in the Commercial Registry.
For urban properties, certificate from the homeowners’ association confirming that payments are up to date.
Cadastral reference (latest IBI receipt).
Indication of whether or not the property is rented.
In which situations can this service be used?
A mortgage loan can be used in various situations, including:
Home purchase.
Renovations or improvements in the home.
Debt consolidation.
Acquisition of land.
Financing real estate investments.