When do you have to go to the notary when buying a home with a mortgage in Spain?
When you acquire a property, you have to meet with the notary on two occasions: the first, to review the mortgage contract and obtain detailed information; and, the second, to sign the deeds
The signing of the deeds is one of the most anticipated moments in the process of buying and selling a home, since it involves obtaining the property as property. At this point, the figure of the notary is key to guarantee that the operation is carried out with all the guarantees.
According to the Real Estate Credit Law, the buyer has the power to choose the notary who wants to be present at the signing of the mortgage deed and the sale of the home.
The future owner must meet with the notary on two occasions: before the authorization and signing of the mortgage loan deed (pre-contractual phase) and the day of authorization and signature (contractual phase).
First visit: review of the contract and signature of the notarial deed
This first meeting between the home buyer and the notary aims to review the mortgage contract. To do this, the bank delivers to the future owner of the mortgage files – the European Standard Information Sheet (FEIN) and the Standardized Notice Sheet (FiAE) -, the simulation of the periodic installments that must be met in different scenarios of the evolution of interest rates and of the document on the expenses associated with the public deed of the credit. He also takes you a questionnaire to make sure you understand the contract you are going to sign.
With all this, the notary drafts the notarial deed, with which he attests that the owner knows all the rights and duties involved in signing a mortgage. This first meeting must occur at least 10 calendar days before the mortgage deed is authorized and signed.
Second visit: authorization of the deeds of the sale and mortgage loan
The second visit to the notary takes place on the day the deeds are signed. In addition to the notary and the buyer, the seller and the representatives of the bank are also present. As part of his work, the notary recalls and lists the conditions of the mortgage loan reviewed in the first visit, especially all the sections included in the FEIN, such as capital, terms, ordinary interest and the equivalent annual rate (APR) , as well as the commissions and expenses that each party must assume. To ensure that the information matches, a reference to the notarial deed must be attached to the deed. They also include the constitution of the mortgage and the faculties or powers conferred on the creditor to protect the right of him.
In addition, the notary informs, in view of the documentation presented, if there is any registration burden on the property and if the property is up to date with community expenses. He also checks if the seller has delivered the energy efficiency certificate, as well as the means of payment to be used. In addition, he communicates to the contracting parties their legal obligations and their fiscal duties and requests the cadastral reference of the house. Finally, he reports on the distribution of the costs of the operation between the parties.
After signing, the notary provides a simple copy of the deed free of charge. He is also responsible for keeping a copy for 25 years. In any case, you can always go to him later to get a new copy.
Regarding notary fees, the bank must pay the notarial fee for the mortgage loan deed and the mortgage registration fees in the Property Registry. The new owner must pay only in the case of requesting a new copy of the deed.
Completing the purchase of a home can be difficult if you do not have the proper advice. Having a trusted specialist will be key to answering any questions that may arise during this process. For this reason, it is essential to choose a trusted notary and rely on the knowledge and experience of the bank’s specialist.