The mortgage dictionary is a section of the website that allows you to know in detail the definition of all the terms related to the contracting of a mortgage or mortgage product, one of the financial operations that must be thought about and analyzed the most because it involves a significant debt that will be paid over several years. The Notary Bosch-Bages of Barcelona wants with this page to facilitate the knowledge of the most important concepts related to this type of Notarial services related to mortgages.

TweetFormal transparency

With the new regulations on mortgage matters, Law 5/2019 of March 15 regulating real estate credit contracts, which is the transposition of Directive 2014/17 / EU of the European Parliament and of the Council, of February 4, 2014 , it is intended to increase the protection of the debtor through the "formal and material transparency" of the contract.


According to the jurisprudence of the Supreme Court and the CJEU, the creditor's duty of transparency implies that the consumer has "before the conclusion of the contract" understandable information about the contracted conditions and the consequences of said clauses in the execution of the contract. Formal transparency can be found stipulated in the Article 14 of the Real Estate Credit Law. Establishes a list of documents that the lender must deliver to the borrower with a minimum 10 days notice regarding the signing of the contract. This documentation consists of: 
  1. FEIN (European standard information sheet), which will be considered a binding offer.
  2. FIAE (Standardized warning sheet). The relevant clauses must be reported, such as those relating to the downward limitation of the variability of the interest rate (floor), the possibility of early maturity, the distribution of expenses or the risks of loans in foreign currency;
  3. In the case of a variable interest rate loan, of a separate document with a special reference to the periodic payments to be paid by the borrower in different scenarios of interest rate evolution. 
  4. Una project copy, which must reflect the content of the information expressed in points 1, 2 and 3 above.  
  5. Document that breaks down the spending which correspond to the lender and which correspond to the borrower: 
    1. The property appraisal expenses will correspond to the borrower and the management expenses to the lender. 
    2. The lender will bear the costs of the notarial fees of the mortgage loan deed and those of the copies will be borne by the requestor. 
    3. The costs of inscription of the guarantees in the property registry will correspond to the lender. 
    4. The payment of the property transfer tax and documented legal acts will be made in accordance with the provisions of the applicable tax regulations.
  6. If the Credit Institution requires the consumer to contract a policy of Guarantee Insurance for the fulfillment of the obligations of the contract, or to subscribe to a damage insurance with respect to the property that is the subject of the mortgage and the rest of the insurances provided for in the mortgage market regulations, must deliver the conditions of the guarantees in writing insurance that demands. 
  7. When the loan is expected to be formalize by public deed, the borrower will be advised of the obligation to receive personalized and free advice from the Notary Public chosen by the debtor. 

Consult BOE Law 5/2019, of March 15, regulating real estate credit contracts
Tags: Law, Mortgage.

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