The registry and notary fees for the signing of any mortgage are now under the protection of a regulatory change that was reached as a result of a series of rulings of the Supreme Court.
In them it was established that the expenses derived from this should not fall exclusively on the client, considering this practice, until that moment, as unfair and abusive.
How to know if we have to assume the registry and notary fees.
As we have already referred to at the beginning, at the beginning of 2019, the Supreme Court gives a twist to the until then established rule that obliged the client to assume practically all of the many costs that the formalization of a mortgage had implicit.
To clarify that the changes affect loans with mortgage guarantee that affect residential properties or other loans aimed at preserving or acquiring the ownership of a property.
Thus, Law 5/2019 of March 15 comes to comply with the provisions of the aforementioned rulings, establishing for mortgages formalized after its entry into force the distribution of expenses as follows:
The buyer has to bear:
- Appraisal costs of the property. These expenses vary according to the meters of the property and the buyer can choose the appraiser.
- Commission of opening of the mortgage loan.
- Copies of the deed.
- Insurance of the house (home insurance).
- Simple note of the Registry with which to verify the registry situation of the property.
The banking entity will have to pay the expenses related to:
- Expenses of notary’s office.
- Inscription in the Registry of the deed.
- Tax of Documented Legal Acts.
- Costs of the agency.
If the mortgages are prior to the entry into force of the Law, the expenses are distributed differently:
- The bank assumes the expenses of the appraisal and the Land Registry.
- The buyer assumes the expenses of the Tax of Documentary Legal Acts.
- Each part assumes half of the expenses of notary and agency.
- The simple copy of the deed will be paid by the party that requests it.
- It is always advisable to consult the situation of each purchase, the type of property and many other issues associated with the formalization of a mortgage, whether registry and notary fees or others.
In Hinojosa Abogados we advise each of our clients on these and many other issues to always guarantee their legal protection.
Our office of Hinojosa Abogados receives many queries from clients who need to be clear and properly advised about the costs arising from the signing of a mortgage to know which ones they will or will not be obliged to pay.
And although each case is special and deserves a particular analysis, today we are going to share some enlightening details about this subject.