Dation in payment of the main residence

Since the measures of the Code are successive, the following circumstances must be present in order to apply for dation in payment:

• The debtor meets the exclusion threshold.
• The house purchase price complies with the limit imposed, with a maximum of €250,000.
• The debt restructuring plan is unfeasible.
• The institution has opted not to apply the debt reduction.
• Although the bank has initiated foreclosure proceedings, the auction has not been announced.
• The home is not encumbered with subsequent charges.
• The request for dation in payment must have been submitted within the 24 months following the request for restructuring or, at a later time, for those debtors who have a restructuring plan approved and in progress and observe their impossibility to meet the payments.

If these requirements are not met, any action by the entity would be unrelated to the Code.

The dation in payment fully extinguishes the debt secured by mortgage and the personal liabilities of the debtor and third parties.

At the time of requesting the dation in payment, the debtor can request to rent the home for two years by paying a rent of 3% of the total amount of the debt at the time of the dation. In the event of non-payment of the rent, a late-payment interest of 10% will accrue.