Anyone buying a property in Spain with a mortgage will usually need more than one appointment with the notary. The bank must make the mortgage terms available in good time, and before the mortgage deed is signed, a separate meeting with the notary must take place. These steps partly determine when the purchase can be completed.
The FEIN: the mortgage terms
After assessing the mortgage application, the bank provides the Ficha Europea de Información Normalizada (FEIN), the European Standardised Information Sheet. This document sets out the personal terms of the mortgage offer, such as the loan amount, interest rate, term and monthly payments. The bank also provides, among other documents, the Ficha de Advertencias Estandarizadas (FiAE), which contains information about certain risks and clauses.
These documents must be made available to the applicant at least ten calendar days before the mortgage deed is signed. The bank also sends the documentation through the designated system to the notary chosen by the parties, so that the notary can verify that the information requirements have been met. The period is calculated in calendar days, not working days. It cannot be waived simply because the buyer, seller and bank would prefer to sign earlier. For a purchase involving a mortgage, the date on which the documents are actually made available is therefore an important point when planning the transaction.
The Acta Previa: an appointment before completion
Before the mortgage deed can be signed, the buyer must meet with the notary for the acta previa de transparencia, the preliminary transparency deed. During this appointment, the notary checks the documents received and explains the mortgage terms. The buyer can ask questions, and the notary also verifies that the terms have been understood. This appointment must take place no later than one day before the mortgage deed is signed. It therefore cannot be scheduled on the same day as completion if the mortgage deed is also being signed that day. If the required information or the statutory period is missing, the notary cannot execute the mortgage deed.
Who needs to sign?
Establish at an early stage who will be attending and signing at both appointments. The person who, as the borrower, discusses the mortgage terms with the notary during the acta previa must also be involved in signing the mortgage deed. Anyone who wishes to have the mortgage deed signed by a representative under a power of attorney should discuss this in advance with the bank and the notary. They must determine whether representation is possible in the specific circumstances, whether the power of attorney contains sufficient authority, and who must attend the acta previa. Do not assume that, after attending the acta previa in person, someone else can automatically sign the mortgage deed on your behalf.
The notary is also important: in principle, the acta previa and the mortgage deed are handled by the same notary. It is therefore advisable to choose a notary in good time and schedule the acta previa as soon as the documentation becomes available.
Allow sufficient time for these steps when planning the purchase agreement
Preliminary approval from the bank does not mean that the notarial completion can take place immediately. There is a statutory period of at least ten calendar days between the mortgage documents being made available and the signing of the mortgage deed. During this period, the acta previa must also be arranged, no later than the day before the mortgage deed is signed.
When agreeing to the final completion date in the purchase agreement, therefore, take the progress of the mortgage application into account. Also check in good time that all buyers, any co-signatories and representatives holding a power of attorney are available at the required times. This reduces the risk of a planned completion having to be postponed at the last minute.
At Lex Foris, we assist buyers with the legal aspects of purchasing property in Spain. This also includes coordinating the purchase agreement, mortgage application and appointments with the notary.
Ilonka Dekker