MORTGAGES/HIPOTECAS. Many times, the seller has a mortgage loan and this has to be cancelled at the same time at the Notary when the sale is completed through a notarised document called “Escritura de cancelación de hipoteca y carta de pago”. The banker’s representative shall collect the amount pending through a banker’s draft at the same time as the sale is signed. The amount to be paid to the seller shall then be split in 2 cheques. For example: A house is sold for 200.000.-€, but there is a mortgage and the amount pending at the time when the property sale is completed is 100.000.-€. The buyer shall the issue 2 banker’s drafts: 100.000.-€ to the seller, 100.000.-€ to the Bank.
Abogada – Solicitor