Property purchase and sale in Marbella
From marbella lawyers we will advise you during the whole process of buying and selling a property.
In the case of the purchase of a property that is encumbered by a mortgage, the most common practice is for the buyer to subrogate the secured debt with the mortgage. What happens in this case is the assumption of the debt, the creditor must give his consent expressly or tacitly.
What are the steps to take if you buy a mortgaged property:
The first is to know the ownership by asking the seller for a copy of the notarial deed that accredits him as the owner.
With this notarial deed you have to go to the Land Registry and ask for a simple information note to make sure that the property is still in the seller's name and that there is no charge, settling conditions or other debts.
If we find that there is a charge or resolutory condition, we have two options: either require the seller to lift or remove the charge, at his own expense, or we can subrogate the mortgage by informing the lender that granted the loan to give us your agreement.
We must ask the seller for the last receipt of the Real Estate Tax and a voucher that tells us that the property is up to date with all community expenses.
We will also check that the property is not rented.
We will take into account that, except for the Capital Gains Tax, all expenses will be borne by us.
And finally, once we have done all the above steps, we will go to a notary with the deed of the house to sign and it will be then when we become owners. After the signature we will have to register it in the Land Registry.
When buying a home with a mortgage, we can try to renegotiate the debt with the lender. The legal figures that include this possibility are novation and subrogation.
Novation: this is the most advisable option since you do not pay opening and cancellation fees, and consists of renegotiating the debt with the bank by modifying some conditions.
Subrogation: if the above has not been successful, we can go to another financial institution to transfer the mortgage loan. It is more complicated and costly than novation.
Contact with Lawyers Marbella for more information.