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La nouvelle loi sur les contrats de crédit immobilier en Espagne

New mortgage law in Spain (I)

New mortgage law in Spain, by Welex, your motivated and multilingual conveyancing lawyer in Marbella.

Are purchasing a property in Spain and do you need finance? To apply for a mortgage in Spain is the most useable way to proceed. For this purpose our conveyancing Law firm in Marbella felt convenient to write some lines with regards to the new Spanish law that regulates credits to purchase properties.

Mortgage law in Spain

Mortgage law in Spain

On 16th June 2019, the new Spanish regulatory law for real estate credit contracts entered into force, 5/2019 of March 15.

We make a small approximation to the novelties that the new regulations bring us.

The new Spanish mortgage law is a partial transposition of Directive 2014/17/EU of the European Parliament and of the Council of February 4, 2014,  on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 Text with EEA relevance

The mortgage law in Spain is partially developed by Royal Decree 309/2019, of April 26.

Object of the mortgage law in Spain

Article 1 of the aforementioned Spanish law comes to outline the object of it, which literally says:

“This mortgage Law in Spain is intended to establish certain norms for the protection of natural persons that are debtors, guarantors, of credits agreements that are secured by means of a mortgage or other  right of guarantee on residential immovable property  or whose purpose is to acquire or retain rights of property on land or buildings built or to be built.”

Intervening subjects

Credit agreements must be granted by natural or legal persons that perform said activity in a professional manner and when the borrower, the guarantor is an end consumer. That is to say:

The borrower o consumer will in any case be a private individual, including the self-employed.

The creditor must be a professional, that is, both natural and legal person, but with professional dedication in the granting of credits agreements.

Mortgaged object

Spanish Credit agreements must have as guarantee on residential immovable properties, which would include storage rooms and garages.

It will also cover those credits agreements whose purpose is to acquire or retain property rights over land or buildings built or to be built.

Documentation of a mortgage in Spain

Without prejudice to the digital formats allowed by the notarial law, real estate credit contracts must be made in paper format and if the mortgage guarantee is in national territory, public deed must be granted.

No retrospective effect of this law mortgage in Spain

Before going into our next blog about the points that most interest may have, say that the new law in Spain will not be retroactive effect, that is, it will not apply to mortgage loans that exist before 16th June 2019, date of its entry into force.

However, the Spanish mortgage law does exempt cases of novation or subrogation of credit agreements that are perfected after their entry into force and in cases of anticipated maturity.

If you intend to sign a mortgage in Spain, do not hesitate to contact the Welex English speaking conveyancing lawyers in Marbella and accountants in Spain, who will answer any questions about this and any other legal matter.

Welex, your English speaking conveyancing lawyers in Marbella and accountants in Spain, providing Legal and Tax services in the whole of the Spanish Territory.

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