The new mortgage law comes into place in two weeks time and as you can probably imagine it is expected to be a real headache for the real estate market in Spain. Although its implementation comes more than three years late and four months after it received the green light in the Congress of Deputies, it is still generating endless doubts about its implementation.
Notaries and banks are working at full speed to meet the deadlines and prevent a breakdown in the signing of mortgages in the second half of June, a traditionally good month in terms of signing for mortgage loans for the purchase of housing.
June 16th is the date on which the new "Ley de Crédito Inmobiliario 5/2019" will come in to force, although its first business day of application will be Monday, June 17th. So from that day, any mortgage that is signed must comply with the guidelines of the new regulations, including the obligation that the bank delivers the notary all the documentation related to the loan and its conditions at least 10 days in advance, and that the notary sign an act attesting that the client understands the information.
New mortgages that are signed will have to comply with the law, which says that no registrar will accept a loan that does not meet the requirements. And one of them is that the bank has informed the client in advance and that in turn the notary has received the information electronically, that the notary has had a "personal interview" with the buyer to verify and solve doubts, and that must be recorded. And all this must occur at least 10 days before the loan is signed.
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