What is a mortgage?
A mortgage is a form of real estate credit where a bank gets security in real estate. If payments are missed, the property can be sold at foreclosure. Mortgages are registered in the Property Registry – and differ from chattel liens in that the buyer retains usufruct to the property.
How is a mortgage created?
- It is created in a notarial deed (escritura pública)
- It is registered in the Property Registry (Registro de la Propiedad)
Without registration, the mortgage has no legal effect against third parties. Legal review is recommended for both loans and registration.
Typical use
Most Danish property buyers finance with bank loans. The bank then requires a mortgage as security.
Example: You buy a property for 250,000 EUR in Alicante and finance 70%. The bank gets a mortgage. If the loan defaults, the bank can demand foreclosure.
Get legal assistance – why it's important
Spanish real estate credit differs significantly from the Danish model. We help with:
- Review of loan agreements and mortgage terms
- Notarial documentation
- Registration and control
- Rights and obligations as owner
- Coordination with the bank
Foreclosure and default
In case of default, the bank can initiate foreclosure without a lawsuit, if the mortgage is correctly registered. Therefore, it is crucial to negotiate terms such as interest rates and deadlines thoroughly.
We assist with negotiation, review and securing your rights as a borrower.
Conclusion: Security when buying property in Spain
As a Dane, you should not navigate the Spanish property market alone. A local lawyer with Danish understanding ensures correct advice and legal documents.
- Buy and sell real estate
- Mortgages and bank loans
- Notary and registration
Need help with property purchase in Spain?
Contact us today for legal help in Danish.
