What are they?

It's a notarized document that formalizes an agreement whereby a bank typically provides a person with a fixed sum of money that must be repaid, along with interest, through regular payments over a specified period. The borrower guarantees repayment to the bank by offering real estate they own as collateral.

Types of Mortgage Procedures

  • Mortgages

These are contracts in which a person guarantees the payment of a debt or obligation with an asset, usually real estate. In case of default, the property can be auctioned to satisfy the debt. They allow for obtaining financing for various needs. The mortgage holder has the right to choose the notary who will advise them.

  • Mortgage Cancellation

This involves registering with the Property Registry that a mortgage debt has been paid off so that it appears free of the encumbrance. It requires paying the corresponding taxes and registering the change with the Property Registry.

  • Mortgage Modifications and Subrogations

These are modifications to a mortgage that may involve changes to the mortgage debtors, the lending institution, the term, the principal, or the interest rate, among other things.

  • Preliminary Transparency Agreements

These are notarial proceedings related to consumer mortgages, where the client can discuss the mortgage terms with the notary calmly and without pressure. This notarial service is free of charge and only involves the client and the notary.

  • Deeds in Lieu of Foreclosure

These are contracts in which property is transferred in exchange for the extinguishment of a previous debt, thus releasing the previous debtor.

Required Documentation

  • Mortgages

    • Identity document (national identity card, passport, foreign resident's card, or residence permit) of the mortgage applicants, or documents certifying the identity and legal representation of legal entities.

    • Property title deed or property registry certificate.

    • In necessary cases, such as with consumer mortgages, a prior transparency agreement is required.

  • Mortgage Cancellation

    • Full mortgage payment.

    • Obtaining a certificate from the financial institution confirming payment of the mortgage debt.

    • Only the financial institution's representative attends the signing before the notary, and they must prove their authority to represent the institution according to standard procedures.

    • The financial details of the transaction.

    • Deed of constitution of the mortgage or the resolutory condition.

    • National Identity Documents (DNI) of lenders and borrowers.

    • If a company is involved, the powers of attorney or appointment of current directors.

    • Registration details in the Mercantile Registry.

    • Cadastral reference (most recent property tax bill).

    • Whether or not the property is rented.

  • Nominations and Subrogations

    • Generally, both the financial institution and the current borrowers must sign. This involves presenting identity documents (national identity card, passport, foreign resident's card, or residence permit) for individuals, and documents proving legal capacity and representation for legal entities.

    • In certain cases, it is necessary to process a preliminary transparency report, which is free of charge.

  • Preliminary Transparency Reports

    • FEIN (European Standardized Information Sheet).

    • FIAE (Standardized Warnings Sheet).

    • Copy of the draft mortgage deed contract.

    • Periodic installments for fixed-interest loans.

    • Terms and conditions of insurance policies or linked products offered by financial institutions.

    • Expenses of the future mortgage transaction.

    • Document proving that the client is entitled to notarial advice before signing the mortgage deed.

    • Deeds in Lieu of Foreclosure

    • Identity document (National Identity Card, passport, Foreigner's Identity Number, or residence permit) of the applicants for the deed in lieu of foreclosure, or documents certifying the identity and legal representation of legal entities.

    • Property title of the property being transferred in lieu of foreclosure.

    • Identification of the debt that will be settled through the deed in lieu of foreclosure.

  • For mortgage loans and debt acknowledgment:

    • Financial details of the transaction.

    • Property titles of the properties being mortgaged.

    • National Identity Document (DNI) of lenders and borrowers.

    • Marital property regime of both parties.

    • If a company is involved, the powers of attorney or appointment of current directors. Registration details in the Mercantile Registry.

    • For urban properties, a certificate from the homeowners' association confirming that community fees are paid up to date.

    • Cadastral reference (most recent property tax receipt).

    • Whether or not the property is rented.

In what situations can this service be used?

A mortgage loan can be used in various situations, including:

  • Purchasing a home.

  • Home renovations or improvements.

  • Debt consolidation.

  • Land acquisition.

  • Financing of real estate investments.



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