Buying a home is definitely one of the most important decisions made in life. When it comes to buying a property in Spain, the notary plays an important role. For example, the notary can help you in the pre-contractual phase of the mortgage loan. The Association of Spanish Notaries issued the brochure with the description of this process.
Law regulates
The document mentions the new Law governing mortgages in Spain, which came into force on June 2019. It is said that there were amendments to the Law to increase legal certainty and transparency of the process. The new Law regulates in more comprehensive way the real estate loans promotion and pre-contractual information that the financial entity will have to provide.
You should know that this law imposes on the notary an important role in the preliminary phase of the loan. The notary is to ensure that the financial entity fulfills the commitments and to provide you the proper information for free.
The brochure also says you have to choose the notary in ten days after you determine exactly what financial entity you are going to work with and what and what mortgage suits you more. There are more than 2,800 notaries in Spain, you can find the one even in small town.
Then you are to report the financial entity about the notary you have chosen. The financial entity in turn send to notary all documents related to your loan by e-mail.
When all the documents are sent you can visit the notary.
Verify and confirm
The notary will verify that the financial institution has delivered all the required documentation according to the type of mortgage loan requested by you, and that it has done so in the appropriate time.
The notary will confirm that you as the mortgage consumer received the following documents:
- The European Standardised Information Sheet-ESIS (Ficha Europea de Información Normalizada-FEIN)
- The Standardised Warning Sheet (Ficha de Advertencia Estandarizada- FiAE)
- The draft mortgage contract
- The terms and conditions of the insurance policy
- In the case of variable-interest mortgages, a simulation of the mortgage instalments payable
The notary will explain all paragraphs of the mortgage agreement and answer all your questions. Then he will carry out a test to assure that you as the mortgage borrower have fully understood the terms and conditions of the contract and therefore you know about your rights and responsibilities.
The notary will draw up the minutes or Notarial Act thereof, which is free of charge. The document will contain the confirmed facts and the explanations given to the consumer, as well as the questions that he asked, with the answers.