GuĂa de la vivienda BS
All the answers about acquiring your home.
NB: the information this guide contains is solely for orientation purposes to be useful when buying and financing a dwelling. Express notice is given that the Bank of Spain makes available to you via the webpage web www.bde.es (section PublicationsLeaflets and Guides) the Guide on obtaining a mortgage loan which contains all the necessary information for a bank customer who is planning on obtaining a loan for the acquisition of a dwelling. It addresses theoretical and practical aspects which are useful both before and after the life of the loan. It also provides information on the advisability of obtaining information from the different consumer organisations in each Autonomous Community, which can also provide concrete knowledge of the specific aspects and regulations applicable. We are at your disposal to provide any explanations or clarifications necessary.
We take this opportunity to remind you that your personal agent is always there to answer all your questions about your situation and your needs. 1. What must I take into account when choosing a home?
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1. 1. What should my home have?
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1. 2. Which area is best for me to live in?
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1. 3. What orientation should my home have?
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1. 4. What aspects of the dwelling should I check?
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1. 5. What must I take into account to avoid any legal problems?
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2. How can I calculate the amount I need?
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2. 1. What is the “applicant’s ability to pay”?
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2. 2. Should I appraise the dwelling?
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2. 3. What amount does Banco Sabadell finance?
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3. Over how many years will I repay the mortgage?
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4. What types of mortgage are there?
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4. 1. Variable Rate Mortgage
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4. 2. Fixed Rate Mortgage
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4. 3. Combined Mortgage
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4. 4. Basic concepts of interest rates
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5. What expenses should I take into account?
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5. 1. Types of charges
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5. 2. Mortgage-related expenses
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5. 3. Expenses associated with the home purchase
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5. 4. Other expenses to consider
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6. What documentation do I need to present?
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6. 1. Residente en España
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6. 2. No residente en España
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7. What new need for protection do I have?
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7. 1. Asset Protection
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7. 2. Family Protection
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7. 3. Financial Protection
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8. After signing the mortgage, what other arrangements must I take into account?
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8. 1. The deeds and registration in the Property Register. What are they and what are they for? 22 8. 2. When can I start to enjoy my home?
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1. What must I take into account when choosing a home? Every person is different so should be able to find a home that meets their needs. A dwelling, to turn it into your home. To do so, you should be able to compare different dwellings before purchasing one. At Solvia, the real estate division of Banco Sabadell, you can find the home of your dreams, because it has a wide portfolio of properties full of opportunities. There are different facts that affect the price of the dwelling: the area, the orientation, the structure of the building, the quality of the finishes, the number of bathrooms... Below we explain the key points to remember when choosing your home.
1. 1. What should my home have? First of all, you should ask yourself how many rooms and bathrooms you want. Taking into account the number of spaces you need, you can calculate approximately the square metres you need. But when calculating the square metres, take into account the differences between: Usable surface area: sum of the square metres of the dwelling the balconies and the walls. Built up surface area: sum of the square metres of the dwelling the balconies and the walls. Floor area for calculation purposes: sum of the builtup surface area and the proportional part of the areas attributable as a co-owner.
Remember: Usable surf. = m² dwelling + balconieswalls. Built-up surf. = m2 dwelling + balconies + walls. Calc. floor area = built up + % co-owner areas.
And once you begin to compare dwellings, take into account: The number of rooms and bathrooms you expect. The square metres you need, if there is a possibility of enlarging the area or if you also need a storage room. If the distribution is good or if there are many passageways. How difficult it is to park in the area of your new home or if you will need a parking space. If you need a lift to reach the dwelling, either due to physical limitations or out of convenience.
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1. 2. Which area is best for me to live in? The location affects the house price and also your family’s wellbeing, today and in future. Depending on your lifestyle, take into account certain emotional and objective factors. Emotional factors: closeness to parents, relatives, friends, etc. Objective factors: - Approximate prices per square metre in the area. - Connection with the major routes and means of transport closest to your place of work. - Schools, secondary schools, nearby day-care, if you have children. - Shops, supermarkets and shopping centres. - Clinics, hospitals and health centres. - Banks and ATMs. - Parking availability. - Green areas, outdoor activities, sports facilities and leisure areas. - Noisy areas: bus stations, airports, party rooms, etc. - Risk areas: high voltage power lines, ravines, landfills, sewage canals, etc. - Zoning plans that may modify any of the above factors and enhance/worsen your wellbeing.
1. 3. What orientation should my home have?
The optimal orientation of your home depends on the locality in which you live. If you live in one with a very warm climate all year round, the most advisable orientation varies compared to a locality in a cold climate. Choosing the orientation correctly helps to save energy and money: Facing north: it receives direct sunlight only in summer. This is advisable in areas which are very hot during most of the year; this saves on air-conditioning although there is little light. Facing east: this is advisable for dwellings in hot areas. It receives sunlight first thing in the morning until midday throughout almost all the year.
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Facing west: this is advisable for dwellings located in colder climates. It receives sunlight as from midday until dusk. Facing south: highly recommendable also in areas which are cold most of the year. It receives sunlight all day in almost all seasons except summer, when it only receives sunlight at midday. Take into account that dwellings facing onto an inner court of the building are quieter as they avoid the street noise. And also that the rooms have a window onto the exterior with pleasant views which enhances the perception of the dwelling. However, we recommend you make sure you cannot be seen from the outside for greater privacy. 1. 4. What aspects of the dwelling should I check? An old house certainly signifies a saving compared to a new one but you should take into account the need to carry out refurbishment or other types of work. Another option that may means a lower price is the acquisition of a house under construction or off-plan. Irrespective of whether or not it is new, we recommend checking the following aspects of the dwelling. The electricity installation: check the plugs and ensure they are earthed. The plumbing: check that when opening all the taps there is no loss of flow and if the hot water system meets your needs. The gas installation: make sure it complies with the regulations and what type it is (natural gas, city gas or butane). The acoustic and thermal insulation: in addition to the lack of comfort poor insulation causes, it allows you to save energy. The air-conditioning / heat pump: check whether the dwelling has airconditioning, whether the system is individual or centralised, if it circulates the air through conduits and check that the output of the appliance is sufficient to reach every room in the house. The heating: check whether it exists and what type it is (gas or electrical). The finishing: check that the paint, floor, runner boards, trims and everything else suits your taste. Doors and windows: check that they provide sufficient light, ventilation, soundproofing and take into account the outdoor temperature.
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1. 5. What must I take into account to avoid any legal problems? Before buying a home, ascertain whether it is free from encumbrances by seeking this information from the Property Register. Also ask the administrator or secretary of the homeowners’ association for the certificate proving it is in good standing with its association fees. If the dwelling is not free from encumbrances or debt, the seller must bear these.
Remember: You must ensure the dwelling is free from encumbrances and non-payments.
Another factor to take into account is whether the dwelling is affected by public or private works. The City Council can issue a certificate recording the zoning situation of the property and information on whether it is affected by the provisions of the zoning plan. In short, if it is a new dwelling or bought directly from the developer, you need to check: Before executing the deeds: - Name or trade name of the developer, registered address and registration in the Companies Register. - Maps showing the location of the building and dwelling. - Description of the dwelling stating its usable area, general description of the building, its services and utilities, communal areas, etc. - Building specifications. - Data on the registration of the property in the Property Register. - Earnest money contract and deed of sale with the general and special conditions. At the time of notarising the deed: - Certificate of habitability/ first occupancy permit. - Bylaws and regulations of the association. - Information on the damage insurance or surety insurance. - Utility reports of the property. - Certificate of energy efficiency. - Plans of the installations. In the case of a second hand dwelling, you need to check: Before executing the deed: - Title deed of the seller. - Last receipt of the municipal property tax (IBI). - Certificate from the homeowners’ association confirming that the seller is up to date on payments of the association’s expenses. - Ownership and situation with respect to charges on the dwelling (Land Registry Extract of the Property Register). - Last utility receipts (water, electricity, gas, etc.) current with the payments. - Certificate of energy efficiency. - Certificate of habitability. 8
2. How can I calculate the amount I need? Once you have compared the different options available on the market, you may need financing to acquire your home. To determine the entire amount you need to finance and the amount you need saved before undertaking this new stage, you need to take into account the aspects we explain below. We should like to remind you that your agent is at your disposal to resolve any doubts about the financial analysis of your home plans.
2. 1. What is the “applicant’s ability to pay”? Banco Sabadell proposes a monthly instalment that does not exceed approximately 30% of your net monthly income. So, after paying the monthly instalment you continue to have sufficient income to cover other periodic expenses. This is the “Applicant’s ability to pay”. Some of the factors Banco Sabadell takes into account to calculate your ability to pay are: age, marital status, number of members in the family unit, profession, type of work contract, income net of taxes and other debts, credit record, ability to generate resources, etc. 2. 2. Should I appraise the dwelling?
Remember: Yes, via an entity qualified to do so and supervised by the Bank of Spain which will determine the estimated value The appraisal report on of the property. the home is valid for 6 Take into account that the appraisal expires after months. six months, as it is an estimation of the value of the Property under normal market circumstances and cannot be guaranteed to remain the same over time. 2. 3. What amount does Banco Sabadell finance? As a general rules, Banco Sabadell finances 80% of the total appraisal value of the Property if it is the primary residence or 70% if it is secondary, but this percentage may vary in accordance with other factors (bank’s commercial policy, financial capacity of the applicant, furnishing of additional collateral, etc...). For this reason we recommend you have planned savings to make over the difference and for associated expenses, as you also need an additional 15% over the appraisal value to pay the mortgage and transfer expenses.
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3. Over how many years will I repay the mortgage? The repayment period is another aspect to be considered when taking out a mortgage. This amortisation is the payment or set of payments made to reimburse the principal loaned. It is usually monthly and comprises one part for repayment of the principal and another to the interest. Bear in mind that the longer the period, the greater the total interest payable, while shortening the period in excess will raise the amount of the monthly instalment.
Remember: At Banco Sabadell we evaluate your ability to pay to find the repayment schedule that best suits your needs.
Generally speaking, the maximum repayment term is 30 years and the maximum age for requesting mortgage financing is up to 75. Depending on the contract, early partial repayments can be made to shorten this repayment period. If your mortgage allows this, you can reduce the monthly instalments by paying interest only for a certain time, without repaying the principal. By agreeing on an interest-only period with the bank. You must remember that establishing an interestonly period causes the repayment period to be extended.
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4. What types of mortgage are there? Depending on whether you want a fixed or floating interest rate, you have two major options when choosing the type of mortgage. You can also look into the possibility of taking out a mortgage that combines a fixed interest rate and a variable one, such as a combined mortgage. 4. 1. Variable rate mortgage In the case of variable mortgages, the interest rate changes throughout the life of the loan during the periods previously agreed on. This is modified based on a mortgage market reference rate to which a constant differential or spread is added. There are different mortgage market reference rates. The most common are: EURIBOR: interbank interest rate in the Euro zone and published by the European Central Bank. IRPHce (Reference Index for Mortgage Loans for a set of entities): the average mortgage interest rate of all Spanish financial entities that is published by the Bank of Spain. The official interest rates published by the Bank of Spain in the BOE and also the economy pages of the chief newspapers. Although it is not possible to know the future evolution of interest rates, as they are currently at minimum levels, with this type of mortgage you are running a greater risk of variation in rate rises. In variable rate loans, you may have an initial period in which the interest is fixed. Thus, you can avoid fluctuations in the first instalments.
4. 2. Fixed rate mortgage In the case of a fixed rate mortgage, the interest rate is maintained throughout the life of the loan and therefore unaffected at any time by changes in interest rates. The instalments are constant month to month and you can know the total cost of the mortgage before signing, and the total instalments to pay. A fixed mortgage is idea for families with stable earnings over time and with a limited ability to save. At Banco Sabadell you can also take out an Expansiรณn Mortgage with which you know how much the instalment totals at all times and throughout the life of the mortgage. But you start by paying lower instalments that increase on an annual basis. This way, it can adapt to improvements in your personal finances.
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4. 3. Combined mortgage When taking out a combined mortgage, the interest rate is fixed during the agreed period and then becomes variable. This way, you can benefit from constant instalments during the first years and during the following, you are subject to market fluctuations, as with a variable mortgage. 4. 4. Basic concepts of interest rates APR (Annual Percentage Rate): this is used to compare Remember: different loan offers. It is expressed as a percentage and At Banco Sabadell we is the result of a mathematical formula that includes the will take into account interest payable, all the fees, taxes and any other type of your interests and expense the loan applicant must pay in relation to the loan needs to guide you in and which are known by the Bank, except notarial fees. choosing the type of It also includes the cost of ancillary services, such as insurance premiums, etc-, if obtaining the loan under those mortgage that best conditions includes the purchase of those services. suits you. NIR (Nominal Interest Rate): the percentage agreed on in respect of payment for the money loaned. It indicates the percentage received for granting the money. This interest is charged on each bill and is added to the part of the principal repaid in the same bill. Variable interest: subject to the fluctuations of market interest rates. - Reference index: EURIBOR (formulated monthly by the European Central Bank) or IRPHce (formulated by the Bank of Spain). - Differential: the percentage points agreed on initially which are added to the chosen Reference Index. From this sum is obtained the interest in the agreed revisions (annual, half yearly, quarterly...). - Revision period: the first revision takes place after the fraction of the month in which the loan is executed and 6 or 12 months later, depending on what was agreed. Successive revisions are made each semester or year in accordance with the same agreement. Fixed interest: the interest rate is the same throughout the life of the loan. It is unaffected by any reference index.
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5. What expenses should I take into account? In addition to the value of the dwelling, you need to take into account different expenses payable during the purchasing process, either directly related to the acquisition of the dwelling, the expenses associated with the mortgage loan or the different bank charges. 5. 1. Types of charges Arrangement fee of the mortgage: a percentage of the amount loaned must be paid for the execution processes and granting of the loan at the time the operation is signed. Fee for subrogation due to change of debtor: upon acquiring a mortgaged dwelling and becoming responsible for the debt. Compensation for withdrawal: should you decide to partially pay off the debt, the subrogation or total cancellation of the loan. Compensation for Interest rate risk: if the early cancellation or repayment signifies a loss for the bank, which will occur in fixed or combined rate loans when the market rates are, at the time of repayment, lower than the interest rate the debtor was paying. 5. 2. Mortgage-related expenses We inform you that you need to make a provision of funds if you want the agency to take care of the necessary formalities for arranging the mortgage and assessing the operation. We also provide a list so you can plan for other expenses that may arise. In general, all these expenses described below total approximately 15% of the value of the dwelling. Notary expenses: these arise from the intervention of the notary in the execution of the deed of sale and mortgage and are calculated based on the official scale of fees in accordance with the purchase price and amount of the loan, amongst others. Agency and processing fees: these are to be paid if an agency is engaged to carry out the formalities related to the sale and mortgage: Settlement of taxes and registration in the Property Register. Property Registry Expenses: these expenses are incurred when the purchase deed and mortgage deed are recorded in the Properties Registry. The expenses generated by the mortgage are covered by the bank. These are calculated in accordance with the official scales of fees and vary according to the purchase price and amount of the mortgage loan. Stamp Duty: payment of Stamp Duty when signing the mortgage and executing the notarial instrument. Each autonomous community determines the percentage and the party that is supposed to pay it. This is valid for 4 months. 13
Appraisal: this provides guidance on whether the dwelling to be purchased is really worth the seller’s price. This is necessary for the bank as the maximum amount of the loan depends on the value of the property. The appraisal report is valid for 6 months and Banco Sabadell can take care of issuing it for your convenience. Compulsory home insurance: legally required insurance policy with a subrogation clause of rights in favour of Banco Sabadell that covers solely damage to the building, without covering the contents (your personal items). We recommend taking out additional insurance to broaden the cover. Find more information in point 7 of this guide. Bear in mind that when subrogating, some of the expenses mentioned earlier can be avoided (Stamp Duty, for example). 5. 3. Expenses associated with the home purchase The deposit: The developer or builder can request it as a sign of interest in the purchase. It is paid immediately and is not generally reimbursable. In exchange for this amount the dwelling is reserved for a given period of time so you can apply for the mortgage. To expedite the process you can ask the seller or developer for a copy of the title deeds. Lawyer’s fees: A legal adviser can help you with the contract of sale to provide certainty. Property registration extract and charges on the property: This enables you to check the situation of the dwelling, issued by the Property Register to ensure the property belongs to the seller and is not subject to a previous mortgage nor to any other charges. VAT (new dwellings): In the case of a new dwelling, you must pay the Value Added Tax (VAT). This is applied to the sale price: The tax rate is generally 10%, including garages up to a maximum of 2 adjoining rooms or 4% for dwellings under any type of social protection. Stamp Duty must also be paid, which ranges between 0’5% and 2% in accordance with the Autonomous Community. ITP (second hand dwelling): In the case of transfer of a second hand dwelling, Transfer Tax (ITP) must be paid, which varies depending on the community, but ranges between 6% and 10% of the sale price shown on the deed of sale. Municipal capital gains tax on urban land: This taxes the increased value of urban land during the years the seller was the owner of the dwelling or urban property up to a maximum of twenty years. After twenty years, there is no obligation to pay this tax. 5. 4. Other expenses to consider Other additional expenses may arise which we seldom take into account but which may affect your financial situation. We provide a list for you to make arrangements for them. We trust this information will help you to make a more accurate estimate in accordance with your needs:
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Property Homeowners’ association fees
€
Property tax
€
Refuse collection tax
€
Removals Register for water supply
€
Register for electricity supply
€
Register for gas supply
€
Change of residence / Telephone line registration
€
Removals service / Van hire
€
Cleaning service
€
Repairs / Installations Kitchen refurbishment
€
Improvements to electrical installation
€
Improvements to plumbing
€
Bathroom refurbishment
€
Change of floor
€
Painting € Security system
€
Change of locks
€
Other refurbishments
€
Furniture / Electrical appliances Stove top
€
Oven € Washing machine
€
Refrigerator € Other electrical appliances (drier, dishwasher, microwave, etc.)
€
Cupboards € Beds € Other furniture
€
Television and other audiovisual systems
€
Lamps and other decorations
€
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6. What documentation do I need to present? At Banco Sabadell we are aware of the large amount of documentation generated and requested during the mortgage process. For this reason we provide a list so you can prepare all the documents. 6. 1. Resident in Spain Documents to be presented
Presented
Identity document (DNI / NIF) Proof of other income (rentals, commission, account interest, overtime, etc.) Last 2 receipts of your regular payments indicating the balances pending repayment, if applicable (mortgages, personal loans, card credit, maintenance obligations and alimony, rental payments, other debts, etc.) Employment record Bank statement of the last 6 months of the account where your domestic operations are direct debited/deposited (salary, utility bills‌) as holder of an account (new customers only) Any other information that the specific application requires
If you are a salaried worker, you must present:
Presented
Full tax return for the previous year Last two salary slips or pensions
If you are self-employed you must present:
Presented
Tax return of the last two years and quarterly Income Tax Payments of the current year Quarterly VAT payments of the current year and summary of previous year
Documentation relating to the purchase-sale Earnest money contract or, in its absence, the following information: DNI / NIF of the parties intervening Marital status % acquisition by holders Purchase Price
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Presented
Certificate of outstanding debt / zero balance This certificate will be provided by the seller, who must request it from the institutio where the previous charge is declared. To be considered correct it must comply with the following requisites: Lending institution with its signature and stamp Town and Property Register number Real estate registry number Principal pending on the loan on the date the new mortgage is signed Initial loan amount if there is more than one mortgage from the sam institution on the property Building permit issued by the City Council (for dwellings under construction or refurbishment)
Documentation to present on day of signing
Presented
Certificate of Energy Efficiency Certificate of habitability/ first occupancy permit Last full bill paid for Property Tax (IBI) Homeowners’ Association certificate of payments
6. 2. Non-resident in Spain* Other documents to be submitted
Presented
Identity document (DNI/passport) Foreigner’s id no. (NIE)** Tax Statement from your Country, for example Tax Return, P60 or similar according to country of residence (last 2 years) Proof of other income (rentals, commission, account interest, overtime, etc.) Last 2 receipts of periodic payments indicating the sums pending repayment if applicable (mortgages, personal loans, credit cards, alimony, and child support, payment of rent, other debts, etc.) Credit Bureau Report (Experian or Equifax) of your country of origin. Credit record Bank statement of the last 6 months of the account where your domestic operations are direct debited/deposited (salary, bills for services...) as holder of an account (new customers only) Any other information that the specific application requires
If you are a salaried worker, you must present:
Presented
Last two salary slips or pensions Tax return of your country (P60 or equivalent)
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If you are self/employed you must present: Presented Annual accounts for the past 2 years Tax return of your country (SA302 or equivalent)
Documentation relating to the purchase-sale Presented Earnest money contract or, in its absence, the following information: DNI / NIF of the parties intervening Marital status % acquisition by holders Purchase Price Certificate of outstanding debt / zero balance This certificate will be provided by the seller, who must request it from the institutio where the previous charge is declared. To be considered correct it must comply with the following requisites: Lending institution with its signature and stamp Town and Property Register number Real estate registry number Principal pending on the loan on the date the new mortgage is signed Initial loan amount if there is more than one mortgage from the sam institution on the property Building permit issued by the City Council (for dwellings under construction or refurbishment)
Documentation to present on day of signing Presented Certificate of Energy Efficiency Certificate of habitability/ first occupancy permit Last full bill paid for Property Tax (IBI) Homeowners’ Association certificate of payments
The information furnished must be accompanied by a sworn translation into English or Spanish “If you are not resident in Spain, do not forget to take the necessary steps to obtain your N. I.E., the tax identification number of foreigners, as you will need it to carry out any financial transaction in Spain such as the purchase of real estate and for the regulation of the corresponding taxes. You need the N. I.E. to sign deeds and to register the purchase in your name with the Property Register. The N. I.E. is a document issued by the Ministry of the Interior of the Government of Spain and is obtainable from the Foreigners’ Office (Oficina de Extranjeros) at any National Police Station. To apply, you need your passport, a photocopy of same and two permit sized photographs. You can collect the certificate some two weeks after applying, depending on the workload. If you need another person to take these steps for you, you can execute a notarial power of attorney and this person can collect your identity number at the station.
*
**
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7. What new need for protection do I have? The acquisition of a dwelling entails one of the largest investments you will make in life. Protecting yourself against unforeseen accidents is essential to live safely, whatever happens. Because everything that matters to you deserves the maximum protection.
7. 1. Asset protection Need to protect your new home For your security and reassurance, your home and everything it contains must be properly protected. Home insurance allows you to feel protected if your house suffers a loss. Building, contents and civil liability are the basic covers. In the case of mortgaged dwellings, the goods mortgaged must be covered by damage insurance by law. But we recommend taking out full insurance which, in addition to offering these covers, provide other covers which are essential, such as contents and civil liability. You can freely purchase these policies with the insurance companies of the Banco Sabadell Group. It is normal for the insurance policy to have a subrogation clause so that, in the event of a loss, the indemnity is applied as necessary to amortise the principal pending on the mortgage loan. Basic concepts It is important to be aware of the chief terms when purchasing home insurance. Some of the main concepts are: Building: This comprises all the construction elements and structure of the dwelling. It is not the same as when purchased or when sold as its value is what it would cost to repair it. That is, what it would cost to restore the walls, roof, floor or installations following a loss. The land value is not included in the building value. Contents: In home insurance, the contents are everything contained inside the house: furniture, clothing, electrical appliances, computers, etc. So to calculate the value of the contents accurately it is advisable to go through the dwelling room by room and note down everything that would need replacing in the event of theft, flooding, fire or other losses. Third party liability: If it causes a loss to third persons this requires indemnifying. Premium: This is the price to be paid for the home insurance. This varies in accordance with the value of the building and contents and risks, covers and services contracted. Its frequency varies as agreed on.
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How to calculate the value of the building When the dwelling is appraised, the appraiser indicates the value for the capital of the building or “standing value�. If you have constructions adjacent to the building, such as a swimming-pool or garage, you should remember to include them in the home insurance. How to calculate the value of the contents For a fully furnished flat, the contents value is generally 30% of the value of the building. It is always advisable to make a list with the purchase value of everything that would fall out if the house were turned upside down: furniture, clothing, non-built in electrical appliances, personal effects, etc. If you have homeowner association insurance, take into account that this is supplementary to the Home Insurance. There are items in the dwelling such as kitchen furniture, doors, bathroom elements, built-in wardrobes, flooring, airconditioning or heating appliances, etc... which homeowner association insurance only covers ifs they form a fixed part of the communal building. Over-insurance or under-insurance It is very important to be realistic when calculating the value of the contents and building. Otherwise it will be over- or under-insured. Over-insurance. This is when the value of the building or contents declared is greater than the real value. So the premium to be paid is higher, but the benefits are the same as those obtained with a more realistic evaluation. Under-insurance. The value of the building or contents insured is lower than the real value and therefore the compensation receivable in the event of a loss never covers the total outlay. The value insured is the maximum sum to be paid in compensation.
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7. 2. Family protection The need to protect your family The mortgage instalment is generally one of the highest fixed expenses for a family’s economy. Purchasing mortgage-related life assurance guarantees you the peace of mind that in the event of a death, your family will not have to pay the debt on the loan pending. It is essential in cases in which the insured’s family is dependent on their income. You can purchase this cover via our insurance with periodic premiums (quarterly or yearly) or a single premium (which you can finance with the loan) to have your needs covered throughout the life of the loan. Optionally, if you purchase insurance with periodic premiums, together with death cover you can purchase absolute permanent disability insurance. This is essential when the family of the insured is financially dependent on the former’s income.
7. 3. Financial protection Need to protect your mortgage payments In a scenario of financial uncertainty, Payment Protection provides you the reassurance of being able to meet the mortgage instalments when unemployed or temporarily disabled up to the limits set forth in the Particular Conditions of your contract.
Additional information about the insurance linked to your mortgage: Home Protection is insurance by BanSabadell Seguros Generales, Sociedad Anónima de Seguros y Reaseguros, with tax no. A64194590 and domiciled at Calle Isabel Colbrand, 22, 28050 Madrid, entered in the Madrid Companies Register and in the DGSyFP Register of Brokers with code C-0767. Life Total Protection is life insurance by BanSabadell Vida, Sociedad Anónima de Seguros y Reaseguros, with tax no. A08371908 and domiciled at Calle Isabel Colbrand, 22, 28050 Madrid, entered in the Madrid Companies Register and in the DGSyFP Register of Brokers with code C-0557. The insurance is brokered by Bansabadell Mediación, banking/insurance operator linked to Grupo Banco Sabadell, S.A., with tax no. A03424223 and domiciled at Avda. Oscar Esplá 37, 03007 Alicante. Entered in the Alicante Companies Register and in the DGSFP Register of Insurance Brokers with code no. OV-0004, holder of civil liability insurance and with sufficient financial capacity according to art. 21 of the Private Insurance and Reinsurance Act, Law 26/2006.
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8. After signing the mortgage, what other arrangements must I take into account? The mortgage process does not end with the signing of the mortgage. To determine the execution of the loan and deliver the keys to the new dwelling other steps are necessary.
8. 1. The deeds and registration in the Property Register. What are they and what are they for? The title deeds are a public instrument legalised by a Remember: notary who vouches for the identity and legal capacity At the Property of the parties, containing their rights and obligations Registry you can under the contract in question. The notary first verifies see who appears the ownership and charges on the property sold as the owner of and, if applicable, the subsequent mortgage, and the dwelling and independently informs and advises the parties regarding check for distraints, the obligations arising from the mortgage loan. Once the title deeds are signed and all taxes paid, the dwelling mortgages or other must be registered and, if applicable, also the mortgage charges. in the Property Register. Registration of the dwelling in the Property Register is essential for obtaining the mortgage loan. It is also necessary because it protects your ownership right vis-à -vis the seller’s creditors. Nobody may acquire any right over your home without previously obtaining your authorisation.
8. 2. When can I start to enjoy my home? Signing the title deeds is the equivalent of delivery the dwelling. The keys are usually handed over at this time. Once the dwelling is registered in the Property Register and the title deed execution expenses are paid, a copy of the original deed is delivered to the buyer.
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Once the keys are delivered together with the title deeds, you can now start to enjoy your home.
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902 323 000 For foreigners:
902 343 999
bancosabadell.mobi
bancosabadell.com
Banco de Sabadell, S.A., Avda. Ă“scar EsplĂĄ, 37, 03007 Alicante. Registered in the Companies Register of Alicante, Volume 4070, Folio 1, Page A-156980, with Tax ID No. A08000143.