The notary's involvement in property and mortgage transactions is key to guaranteeing legality and legal certainty and to protecting all the parties involved.
Mortgage Loan
Formalisation of a loan secured by a mortgage over a property. The notary checks that the contract complies with the Spanish Real Estate Credit Contracts Act (Ley de Contratos de Crédito Inmobiliario, LCCI).
- A public deed (escritura pública) is mandatory.
- Free advice for the borrower before signing.
- Review of the documentation and terms.
- Registration at the Land Registry (Registro de la Propiedad).
Sale of a Property
Transfer of ownership of a property from the seller to the buyer.
- A public deed with full legal validity.
- Checks on charges and ownership.
- Verification of the means of payment.
- Taxes can be settled and the deed submitted to the Land Registry.
Mortgage Cancellation
The act by which a mortgage is formally extinguished once the loan has been repaid.
- Deed signed by the lending institution.
- Can be processed electronically.
- Required to remove the charge from the Land Registry.
Notarial Statement of Outstanding Balance (Acta de Fijación de Saldo)
A notarial document recording the outstanding balance of a loan, usually in order to repay it or modify it.
- Important for establishing the final amount owed.
- Requires supporting documentation from the bank.
Deposit Contract (Contrato de Arras)
An agreement prior to the sale under which sums are paid on account.
- Secures the commitment of both parties.
- May involve a penalty if either party fails to comply.
- Can be notarised as a public deed at the notary's office.
Purchase Option
A right granted to a person to acquire a property within a set period.
- A notarial deed is optional but advisable.
- Protects the prospective buyer.
- Can be registered at the Land Registry.
Mortgage Payment Holiday (Moratoria Hipotecaria)
A temporary suspension of mortgage loan repayments, provided for in exceptional circumstances.
- Arising from legal measures (such as during COVID-19).
- Requires an agreement between the borrower and the lender and can be documented before a notary.
Termination of Joint Ownership (Extinción de Condominio)
A transaction in which one of the co-owners of a property acquires the other's share, bringing the joint ownership to an end.
- Applicable to divorces, inheritances, etc.
- A public deed is mandatory.
- May have tax advantages compared with a sale.
Declaration of New Construction (Obra Nueva)
Registration at the Land Registry of a building (already completed or planned) on a plot of land.
- Deed with technical certificates and planning permission.
- May include future buildings (new construction in progress).
- Required in order to sell or mortgage the property.
Division into Separate Units (División Horizontal)
The act by which a building is legally divided into independent units (homes, commercial premises, garages, etc.).
- Deed with a description, ownership percentages and community rules.
- The basis for setting up a community of owners.
- Must be registered at the Land Registry.
Transparency Certificate (Acta de Transparencia, LCCI)
A mandatory document prior to signing a mortgage loan for a home, as required by the LCCI.
- The notary informs and advises the consumer free of charge.
- It is signed at least 1 day before the loan.
- Ensures that the borrower understands the loan and enters into it freely.
Novation of the Mortgage Loan
Modification of the terms of an existing loan (interest rate, term, instalments...).
- A notarial deed is required if essential elements are affected.
- May involve costs or tax benefits.
Change of Lender (Subrogation)
Switching the financial institution that grants the loan while keeping the mortgage.
- Allows you to improve the loan terms.
- A public deed is mandatory.
- Subject to the legal deadlines within which the original lender may object.
Note: All these services require the involvement of a notary through a public deed. The notary's office not only attests to the transaction but also provides impartial advice, protecting all parties.