In this article we will explain the documentation that will have to be provided to carry out a mortgage loan deed, although the majority will have to be provided to the bank, and the one required from the notary's office is normally provided directly by the bank.  

DOCUMENTATION TO PROVIDE FOR THE GRANTING OF THE MORTGAGE LOAN FROM THE BANK ENTITY

The first thing you will have to do to process a mortgage loan is to contact the bank and provide all the documentation that the bank itself requests. In the article What documentation do I need to provide to request a mortgage? We explain in detail the documentation that they will ask for, which is normally:

  1. Photocopy of the ID of the holders on both sides.
  2. The last two complete payrolls.
  3. The last tax return or the withholding certificate stamped and / or signed.
  4. A working life of not less than 6 months old.
  5. Registry data or simple note of the home to be mortgaged.

NOTARY ACT PRIOR TO THE FORMALIZATION OF THE MORTGAGE LOAN

Once the bank has granted the mortgage loan and all the documentation is prepared, send this documentation to the Notary Public. The notary who will carry out the mortgage loan deed is chosen by the borrower (the consumer). In this article we explain the customer's choice in mortgage loans. 

The first thing that will have to be done at the Notary's Office is the notarial certificate prior to the formalization of the mortgage loan. This act, regulated by article 15 of the Law 5/2019, of March 15, regulating real estate credit contracts, aims to meet the requirement of material transparency. It is a notarial document that guarantees that the person or persons who are going to sign the mortgage loan have received all the documentation and information necessary to understand the scope of the obligations they are assuming. 

Therefore, the first thing the mortgagor will have to do is go to the Notary's Office so that they individually explain the conditions of the mortgage loan that they are going to subscribe, and clarify any doubts they may have. The guarantors and non-debtor mortgagers will also have to go to the notary. In this preliminary act, the Notary Public will explain to the borrowers the documentation provided by the bank. In the article What documentation will the Notary have to inform me of in the transparency act? We explain in detail the documentation that the Notary Public will explain to you, which is normally:

  1. FEIN (European Standard Information Sheet).  
  2. THE FIAE (Standardized Warning Sheet).
  3. Document that makes special reference to periodic installments in different interest rate evolution scenarios.
  4. A copy of the draft contract.
  5. Conditions of insurance guarantees.
  6. Document that breaks down the expenses that correspond to the lender and those that correspond to the borrower.

Once the preliminary act has been finalized, the people who have assisted in it, whether they are mortgagers, non-debtor mortgagers or guarantors, will have to answer, sign and deliver a test about the documentation provided and the information provided, which has the purpose to check that they have understood all the clauses of the mortgage loan that they are going to sign. 

NOTARY DEED OF MORTGAGE LOAN

In Catalonia, the notarial mortgage loan deed can be signed when fourteen days have passed since the bank provided the documentation to the consumer. Between the previous act and the mortgage loan deed, a day must pass. 

The notarial deed of the mortgage loan must include, as a minimum: 

  1. A simple informative note of the property that is mortgaged. 
  2. The descriptive and graphic cadastral certificate of the property that is mortgaged
  3. A document that establishes the price at which the farm is appraised.  

Normally, the mortgage loan is made on the same day as the sale of the property, so that the simple note of the property and the cadastral certificate will have already been provided by the mortgagee to carry out the deed of sale. In relation to the appraisal document, it will have to be provided by the bank. 

To obtain information regarding the documentation necessary to carry out a sale, click here. 

Warning: the documentation to be provided in each deed may vary depending on the particularities of each case. We recommend that you contact our notary for personalized information.