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Free Guide to Hiring a Real Estate Lawyer
Maspalomas is a resort community on Gran Canaria that attracts both locals and international buyers. Mortgage law in Spain governs how lenders offer home loans, the information borrowers must receive before signing, and how loans are secured by real estate. The key framework is national, with some regional considerations in the Canary Islands that influence taxes and licensing related to property use.
One of the central rules is that lenders must provide clear information about costs, APR or TAE, and the true cost of credit before the contract is signed. Law on Mortgage Credit Contracts ensures borrowers understand annual percentage costs, fees, and potential penalties. This framework applies whether you buy for primary residence, a holiday home, or an investment in Maspalomas.
Beyond the contract, the mortgage is tied to property registration and civil procedures if disputes arise. The property must be properly registered, and the mortgage lien is registered at the Registro de la Propiedad. This ensures both the borrower and lender have a formal record of the loan and the security interest on the property.
Ley 5/2019 de Contratos de Crédito Inmobiliario governs consumer mortgage contracts in Spain. It requires transparent disclosure of all costs, limits certain clauses, and enhances borrower protections during negotiations. The law entered into force in 2019 and is the primary reference for mortgage lending in Maspalomas and across Spain.
“This law strengthens borrower rights by mandating clear information and prohibiting abusive terms in mortgage agreements.”
Código Civil y Ley de Enjuiciamiento Civil regulate the mortgage as a real security and outline the process for foreclosure (ejecución hipotecaria) and enforcement. These civil framework provisions apply to mortgage creation, registration, and any judicial steps to recover a loan.
“The mortgage lien is a classic real security registered at the property registry.”
Canary Islands regional considerations can affect taxes and licensing related to property use in Maspalomas. While mortgage terms are nationally governed, property transfer taxes and local licensing for rental activities may vary in the Canary Islands. It is advisable to review any regional tax guidance and tourism regulations that affect investment properties and mortgage costs. For guidance tailored to Canarias, consult the regional authorities and a local solicitor.
It is Spain's primary law regulating mortgage contracts. It requires clear disclosure of costs, APR, and loan terms before signing. It also restricts unfair terms and improves borrower protections during negotiations.
Compare total cost of credit, not just the headline rate. Look at APR, opening fees, appraisal costs, insurance requirements, and any penalties for early repayment. A lawyer can help you create a comparison checklist.
Typical timelines range from 4 to 12 weeks, depending on documentation, property registration, and lender processing times. Your lawyer can identify bottlenecks and help you stay on track.
Having a local solicitor helps with local registrations, property checks, and negotiations with providers. They can also coordinate with notaries and registries to ensure compliance with Maspalomas requirements.
Common documents include proof of identity, income and employment details, tax records, property details, and any existing debt. Your lawyer can prepare a tailored list for your situation.
Property taxes and mortgage-related taxes are separate obligations. A lawyer can clarify who pays the ITP or AJD taxes and how these affect overall cost.
Ask your attorney to review the full loan offer, including the costs disclosure, and request a written breakdown from the lender. Don’t sign until all items are transparent.
Yes. A lawyer can negotiate without compromising the loan terms and can push back on mandatory insurances or unnecessary fees that may not add value to your loan.
Foreclosure timelines vary by province and case complexity. A lawyer can explain regional averages and help you pursue alternatives such as loan modification or settlement negotiations.
A solicitor should perform title due diligence and verify the mortgage lien in the Registro de la Propiedad. This reduces the risk of title issues affecting your loan.
Risks include licensing requirements for tourist rentals and possible regulatory changes. A local attorney can check licenses and ensure your mortgage terms align with permissible uses.
