What does it consist of?

A mortgage deed is a notarial document in which an agreement is made, usually where a bank makes a fixed sum of money available to a person, which must be repaid with interest through periodic payments over a set period. The person receiving the money guarantees its repayment by offering a property as collateral.

Types of Mortgage Procedures

  • Mortgages
    Contracts where a person guarantees the payment of a debt or obligation with a property, typically real estate. In case of non-compliance, the property may be auctioned to settle the debt. Mortgages allow for obtaining financing for various needs. The mortgage holder has the right to choose the notary to provide advice.

  • Mortgage Cancellation
    Involves registering in the Property Registry that a mortgage debt has been settled so that the property is no longer encumbered by that debt. This requires paying the applicable taxes and registering the cancellation in the Property Registry.

  • Novations and Subrogations
    These are modifications of a mortgage, which may involve changes to the debtors, the creditor entity, the term, capital, or interest rates, among others.

  • Preliminary Transparency Acts
    These are notarial records related to mortgages for consumers, where the client can discuss the mortgage terms with the notary in a calm and pressure-free manner. This notarial action is free of charge and only involves the client and the notary.

  • Dation in Payment
    These are contracts where a property is delivered in exchange for the cancellation of an existing debt, thus releasing the previous debtor from their obligation.

Required Documentation

  • Mortgages

    • Identity document (ID, passport, NIE, or residence card) of the mortgage applicants, or documents certifying the identity and representation of legal entities.

    • Ownership title of the mortgaged property or property registration note.

    • In necessary cases, such as mortgages for consumers, a preliminary transparency act must have been processed.

  • Mortgage Cancellation

    • Full payment of the mortgage debt.

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

    • Only the representative of the financial institution attends the notary signing and must prove their powers of representation according to general rules.

    • Financial data of the transaction.

    • Deed of establishment of the mortgage or its termination condition.

    • ID of both lenders and borrowers.

    • If a company is involved, the powers or appointment of administrators must be provided.

    • Registration details from the Commercial Registry.

    • Property tax reference (last IBI receipt).

    • Whether the property is leased.

  • Novations and Subrogations

    • Generally, both the financial institution and current borrowers must sign. This involves presenting identity documents (ID, passport, NIE, or residence card) for individuals and documents proving identity and representation for legal entities.

    • In some cases, a preliminary transparency act must be processed, which is free of charge.

  • Preliminary Transparency Acts

    • FEIN (European Standardized Information Sheet).

    • FIAE (Standardized Warning Sheet).

    • Copy of the proposed mortgage deed.

    • Periodic loan installments with fixed interest rates.

    • Conditions of insurance or linked products offered by financial institutions.

    • Costs related to the future mortgage transaction.

    • A document certifying the client’s right to notarial advice before the mortgage deed is signed.

  • Dation in Payment

    • Identity document (ID, passport, NIE, or residence card) of the dation applicants or documents certifying the identity and representation of legal entities.

    • Ownership title of the property involved in the dation.

    • Identification of the debt being settled through the dation.

  • For Mortgage Loans and Debt Recognition

    • Financial data of the transaction.

    • Property titles of the mortgaged properties.

    • ID of both lenders and borrowers.

    • The marital economic regime of both parties.

    • If a company is involved, the powers or appointment of administrators must be provided. Commercial Registry details.

    • For urban properties, a certificate from the homeowners association proving the property is up to date with community fees.

    • Property tax reference (last IBI receipt).

    • Whether the property is leased.

In what situations can this service be used?

The mortgage loan can be used for various situations, including:

  • Purchasing a home.

  • Home improvements or renovations.

  • Debt consolidation.

  • Land acquisition.

  • Financing real estate investments.