The new Law on real estate credit contracts

The new Law on real estate credit contracts reduces the costs associated with changes in mortgage contracts and establishes measures to increase the transparency of the terms of mortgage contracts.

The purpose of this Act is to establish certain rules for the protection of individuals who are debtors or guarantors of loans that are guaranteed by a mortgage (or other real property security right) for residential use or whose purpose is to acquire or retain property rights on real estate.

The Law on Real Estate Credit Contracts, which incorporates European legislation into the Spanish legal system, regulates three different aspects:
– Contains rules of transparency and conduct that impose obligations on lenders and credit intermediaries, as well as their designated representatives;
-regulates the legal regime of real estate credit intermediaries and real estate lenders;
-and establishes the sanctioning regime for breaches of the new obligations that it imposes.

In addition, it introduces a series of provisions whose purpose is to strengthen certain aspects of the legal regime of mortgage contracting and its development during the life of the contract, referring to certain situations that, in such long-term contracts may occur and must be taken into consideration , demanding greater guarantees, with a clear and simple regulation that avoids unnecessary interpretative doubts, and fixing mechanisms of conflict resolution. The main objective is to strengthen the guarantees for the borrowers in the hiring process and avoid foreclosure with the consequent loss of the home.

The new law lowers the commissions for early cancellation of variable rate loans, and eliminates them after five years of contract validity. Likewise, it cancels the banking commission from the third year on the conversion of variable to fixed rate, and reduces the expenses of tariffs and notary.

The new law specifies that, during the seven days prior to the signing of the contract, the mortgaged person must be informed in detail of the content, and the existence of potentially abusive or opaque clauses. The purpose is that the borrower can know exactly the cost that, in the medium and long term, the financing that he is hiring will entail, which will allow him to carry out a better long-term financial planning. At the same time, it favors the simplicity in the drafting of the contracts and consequently the transparency with the borrowers.

Finally, the new regulation establishes that in order to begin foreclosure, the debtor must have made nine monthly defaults, or 2% of the capital granted, during the first half of the life of the loan. During the second half, the percentage is 4% or twelve unpaid monthly instalments.

About Elegant Inc.

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem

Commercial Design

aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit

Residential Design

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab

Interior Design

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores

Exterior

Urban & Commercial Design

Cu omnium propriae mel. Eum detracto suscipit ut, et vix splendide scriptorem. His exerci integre moderatius et, ea vis zril choro deseruisse. Ea qui omnesque mnesarchum liberavisse. Ei mei unum lorem, te nam velit philosophia. Ea qui omnesque mnesarchum liberavisse. Ei mei unum lorem, te nam velit philosophia

Cu omnium propriae mel. Eum detracto suscipit ut, et vix splendide scriptorem. His exerci integre moderatius et, ea vis zril choro deseruisse.

Interior

Interior Spaces & Experiences

Cu omnium propriae mel. Eum detracto suscipit ut, et vix splendide scriptorem. His exerci integre moderatius et, ea vis zril choro deseruisse. Ea qui omnesque mnesarchum liberavisse. Ei mei unum lorem, te nam velit philosophia

Recent Projects

Environmental

Monarch Park

For City of San Francisco

Interior

Divi HQ Office

For Divi Inc.

Testimonials

“At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi”

Patrick Thomson

“At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi”

Jeff Dow

“At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi”

Brenna Redding

Our Clients

Blog

Let’s Build Something

Cu omnium propriae mel. Eum detracto suscipit ut, et vix splendide scriptorem. His exerci integre moderatius

contact@diviarchitact
1234 Divi St., San Francisco, CA
+1 (111) 222-4455