Mortgage Loan : Jesús Benavides Notary Office
Real estate and mortgage

Mortgage loan

Step 1

What is a mortgage loan?

It is the notarial document by means of which an agreement of wills is expressed where normally a banking entity makes available to a person a fixed amount of money that must be returned together with the interests by means of periodic payments in a determined time. The person who receives the money guarantees its return to the bank offering as guarantee a real estate property of his property.

Step 3

How much does it cost to formalize a mortgage loan deed before a notary?

Since the entry into force on June 16, 2019 of Law 5/2019 on Real Estate Credit Contracting, the controversy over who must assume the costs of formalizing the mortgage loan has been settled. The aforementioned Law establishes that the notary, registry, agency and tax expenses must be assumed by the financial entity. Through the following calculator it is offered to the financial entity to be able to know in advance with great accuracy the expenses of formalization of a mortgage loan. This calculator has parameterized both the notary and registry fees as well as the regional regulations in relation to the Stamp Duty tax.

Step 4

More frequently asked questions

Normally every mortgage loan contract, regardless of the financial entity chosen, presents the same structure divided into two large blocks: the financial clauses and the general non-financial clauses. In this section we answer all the possible doubts that may arise, following the order of the clauses that you will find in your future mortgage loan notarial deed.

Financial clauses

Loan principal and delivery
See more
Duration. Maturity. Amortization. Grace period.
See more
Ordinary interest
See more
Interest rate subsidy agreement
See more
See more frequently asked questions
Commissions
See more
Payment schedule and annual percentage rate (APR)
See more
Expenses
See more
Interest on late payments
See more
Causes for early maturity due to non-payment of installments
See more
Purpose of the loan
See more

General clauses

Payment address and associated deposit
See more
Incorporation of mortgage
See more
Description of mortgaged properties
See more
Warranty extension
See more
See more frequently asked questions
Legal action. Appraisal. Auction.
See more
Extrajudicial sale
See more
Other guarantees. Guarantees.
See more
Proxy for delay
See more
Damage insurance
See more
Transfer of the property and subrogation
See more
Transfer of information
See more
Enervation
See more
Processing of personal data
See more
Bankruptcy agreements
See more
Management clauses
See more
Information to the debtor
See more

Related articles

Step 5

Where can I consult the applicable regulations?

All of the regulations referenced below are consolidated texts (integrating the original wording of the regulation as well as its subsequent amendments). These regulations are listed chronologically and in separate blocks to facilitate your search.

New regulations

Law 5/2019, of March 15, 2009, regulating real estate credit agreements. (see PDF)

Development regulations

  • Royal Decree 309/2019, of April 26, 2009, partially implementing Law 5/2019, of March 15, 2009, regulating real estate credit agreements and adopting other measures in financial matters. (see PDF)
  • Order ECE/482/2019, of April 26, amending Order EHA/1718/2010, of June 11, on regulation and control of advertising of banking services and products, and Order EHA/2899/2011, of October 28, on transparency and customer protection of banking services. (see PDF)

General Directorate of Public Faith and Legal Certainty (former DGRN)

  • Resolution of May 16, 2019, of the Directorate General of Registries and Notaries, in Consultation on the interpretation of certain aspects of Law 5/2019 and Royal Decree 309/2019, in the exercise of notarial functions of verification of compliance with the material control of transparency . (see PDF)
  • Instruction of June 13, 2019, of the General Directorate of Registries and Notaries, on the deposit of general conditions of the contract, and the reflection of the same in the deeds of loan and in the Land Registry, since the entry into force of Law 5/2019, of March 15, 2019, regulating real estate credit contracts. (see PDF)
  • Instruction of June 14, 2019, of the Directorate General of Registries and Notaries, on the use of computer platforms of financial institutions and agencies, for the processing of information prior to mortgage loan deeds, in the days following the entry into force of Law 5/2019 of March 15, 2019, regulating real estate credit contracts . (see PDF)
  • Instruction of June 14, 2019, of the Directorate General of Registries and Notaries, on the signing of operations whose marketing, offer and delivery to the consumer of the information have been developed under the validity of the previous regulations, the loan being formalized after the entry into force of Law 5/2019, of March 15, 2019, regulating real estate credit contracts . (see PDF)
  • Resolution of November 29, 2019, of the Directorate General of Registries and Notaries, in the appeal filed against the qualification of the Logroño property registrar no. 2, suspending the registration of a deed of loan with mortgage guarantee. (see PDF)
  • Instruction of December 20, 2019, of the Directorate General of Registries and Notaries, on the notary and registry action in the face of various doubts in the application of Law 5/2019, of March 15, regulating real estate credit contracts . (see PDF)

General Council of Notaries (CGN)

  • Urgent Circular of the General Council of Notaries, regarding the fourth transitory provision of Law 5/2019, of March 15, 2009, regulating real estate credit agreements (LCCI).
  • Letter of May 17, 2019 from the President of the General Council of Notaries to the General Directorate of Registries and Notaries on various aspects of the new Law 5/2019 and its regulatory development. (see PDF)
  • Mandatory Circular 1/2019, of May 24, 2009, of the General Council of Notaries, regarding Law 5/2019, of March 15, 2009, regulating real estate credit agreements (hereinafter, LCCI). (see PDF)
  • Oficio and internal communication of June 14, 2019 of the Plenary of the General Council of Notaries to all notaries in Spain. (see PDF)
  • Informative note of the Notarial Association of Catalonia on the impact of the Real Estate Credit Contracts Law on the Consumer Code of Catalonia. (see PDF)
  • Informative note of June 17, 2019, of the General Council of Notaries of June 17, 2019, on certain practical aspects of the application of Law 5/2019 regulating real estate credit contracts. (see PDF)

Association of Registrars

  • Report 11/2019 of the commission of doctrinal consultations of the Association of Registrars on practical aspects of the Law on Real Estate Credit Contracts 5/2019 of March 15. (see PDF)
  • Report number 13/2019 of the Registry Studies Service, Registry Guide on the application of Law 5/2019, of March 15, 2009, regulating real estate credit contracts. (see PDF)
  • Report on the inscribability of various mortgage loan clauses with consumers: fees for claiming debit positions and bonuses for combined contracts. (see PDF)
  • Report number 16/2019 on some questions raised on issues related to Law 5/2019 on the regulation of real estate credit agreements. (see PDF)
  • Issues raised on LCCI at meeting with financial institutions 10/17/2019. (see PDF)
  • Issues raised at the CER Directors' Meeting (see PDF)

Remaining regulations (partially modified)

  • Royal Decree of July 24, 1889 publishing the Civil Code. (see PDF)
  • Decree of February 8, 1946, approving the new official wording of the Mortgage Law. (see PDF)
  • Decree of February 14, 1947, approving the Mortgage Regulations. (see PDF)
  • Law 2/1981, of March 25, 1981, regulating the mortgage market. (see PDF)
  • Law 2/1994, of March 30, 1994, which regulates the subrogation and modification of mortgage loans.(see PDF)
  • Law 7/1998, of April 13, 1998, on general contracting conditions. (see PDF)
  • Law 1/2000, of January 7, 2000, of Civil Procedure. (see PDF)
  • Royal Legislative Decree 1/2007, of November 16, 2007, approving the revised text of the General Law for the Defense of Consumers and Users and other complementary laws. (see PDF)
  • Law 41/2007, of December 7, which amends Law 2/1981, of March 25, 1981, on the Regulation of the Mortgage Market and other mortgage and financial system regulations, on the regulation of reverse mortgages and dependency insurance and which establishes certain tax regulations. (see PDF)
  • Law 2/2009, of March 31, 2009, which regulates the contracting with consumers of mortgage loans or credits and intermediation services for the conclusion of loan or credit contracts. (see PDF)
  • Royal Decree 716/2009, of April 24, 2009, developing certain aspects of Law 2/1981, of March 25, 1981, regulating the mortgage market and other mortgage and financial system regulations. (see PDF)
  • Order EHA/1718/2010, of June 11, 2010, on regulation and control of the advertising of banking services and products. (see PDF)
  • Law 22/2010, of July 20, 2010, of the Consumer Code of Catalonia. (see PDF)
  • Order EHA/2899/2011, of October 28th, on transparency and protection of banking services customers.(see PDF)
  • BANK OF SPAIN. Entities Registry Division. Note-Second Transitory Provision of Law 5/2019, of March 15, 2009, regulating real estate credit agreements (LCCI). (see PDF)
Step 6

Make an appointment