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escitura

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escitura

Post by janga on Sun Sep 09, 2012 11:15 pm

Can anyone who has a Spanish mortgage on their property tell me, does the mortgage lender keep all title deeds and escitura until the mortgage is repaid ?
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Re: escitura

Post by Cats-R-Us on Mon Sep 10, 2012 2:57 pm

When we had a morgage with a Spanish bank back in 1992 until 1999, the bank kept all the papers until we cleared the debt. I seem to remember they gave us a photocopy for information but don't know if that is normal. As we didn't live over here then, once we had paid off the mortgage, they also arranged for the paperwork to be sent to the land registry (catastral?) to delete the entry saying that the bank had loaned a mortgage on it. They charged, of course, but it saved us flying out and trying to do it ourselves.
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Re: escitura

Post by janga on Mon Sep 10, 2012 3:55 pm

The reason I ask, we have agreed a sale on our cave house, the buyers want to pay us in 4 stage payments. They want us to sign the cave over to them on the 1st payment, along with a legal letter stating that they will make 3 further payments at six monthly intervals.
The document will state if they default in the payment the property will revert back to us.
Can anyone see a problem with this.
Effectively we would be giving them a mortgage, so would it be best if we insist that we have the escatura remain in our name until the final payment is made ?
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Re: escitura

Post by Dave on Mon Sep 10, 2012 4:53 pm

I think i'd have a word with Victorio Julie. If they did default on a payment, the property may revert back to you, but how about if they wont move out?

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Re: escitura

Post by Cats-R-Us on Mon Sep 10, 2012 5:03 pm

Sounds iffy to me. Best speak to a solicitor. Our mortgage was from a bank which sounds a bit different to your circumstances.
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Re: escitura

Post by Taught2BCautious on Mon Sep 10, 2012 8:00 pm

I would be especially cautious in these circumstances as it could prove almost impossible to get them out of your property if they default after the first payment.

The title should not be signed-over until the agreed price has been paid in full, and there will need to be legal conditions as to what they can or can't do with the property (covering sub-letting, damage and maintenance, or securing it against a loan*).

*If I were a dishonest person, I would secure a loan against the value of the property the minute I had the paperwork in my name, and disappear leaving you to sort out the legal and financial chaos!

If they have the financial resources to pay-off over 2 years, there's no reason why they couldn't get an excellent deal from a bank, which would be of enormous benefit to you both - plus if they default then, the bank will have more luck in collecting the debt than you would!

If they are insisting on having the property signed-over on the first payment, I would walk away from the deal.

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Re: escitura

Post by janga on Mon Sep 10, 2012 8:05 pm

thanks for the replies. now I have re read my question cant believe i would be so dumb as to do that.
will have a re think about the conditions, but wont be signing any paperwork over to them.
Talk about leaving your brains in England !!
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Re: escitura

Post by Gobiker56 on Wed Sep 12, 2012 5:57 am

I agree with taught2Bcautious. If they have the means they will get a deal at the bank. We did. We got a loan over two years on the spot as they knew we had the means and knew what the money was for. As it happens we paid it in 1 year, just lived on bread and jam for a bit!.
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