Mortgage-related expenses

Purchasing a property entails a series of costs which represent a substantial amount.

Payment to the bank for the study or analysis of the mortgage risks and for the administrative procedures involved in arranging the mortgage. If the loan is in foreign currency, includes the commission for currency exchange.

Notary fees arise from the execution of the public deed of sale. They are regulated and depend on the value of the property.

Banks usually require that an agent carries out certain procedures needed for the arrangement of the mortgage (land registry verification, tax settlements or recording in the registry). The agency is usually also responsible for registering the deed of sale of the property.

When buying a house, it is important to know its registration status. The most usual way of obtaining this information is to request a land-registry extract from the Land Registry officeAbre en ventana nueva. This extract includes a description of the property, its location, owners, encumbrances and additional information registered.

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  • Its purpose is to establish the value of a property using the appropriate criteria and methodology as regulated by Royal Decree 775/19997 (in Spanish)Abre en ventana nueva
  • The valuation is necessary for banks to ascertain the value of a property and the risk they assume by granting the mortgage. It is performed by appraisal companies which are approved and supervised by the Banco de España. They are also included in the Banco de España’s Official Register of InstitutionsAbre en ventana nueva.
  • The valuation fee is paid for by the customer, who is entitled to receive a copy of the document or the original valuarion from the bank if the mortgage is not finally arranged. If the valuation is carried out by the bank, the customer is also entitled to know the price and the identity of the valuation company that performed the valuation.
  • Since December 2007, following the reform of Law 2/1981, of 25 march 1981 (in Spanish)Abre en ventana nueva, banks must accept the valuations provided by customers, as long as they are certified by an approved valuation company and have not expired. Banks may carry out the verifications they consider appropriate on the valuation provided, but at no additional cost to customers.

Since the entry into force of Law 5/2019 of 15 March 2019 regulating real estate credit agreements, the costs involved in arranging a mortgage are distributed as follows: you pay for the valuation and the bank pays notary, registry and agency fees and taxes.


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