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Mortgage loans: what notaries recommend before signing to avoid inconveniences - Infobae
October 23, 2024
The number of mortgage loans taken out for home purchases is gradually increasing. What are the aspects to pay attention to?
By Jose Luis Cieri
Access to these mortgage loans is also influenced by government policies and banking offerings, but it is important to know this to avoid complications (Illustrative Image Infobae)
When deciding to take out a mortgage loan, it is essential to know the legal aspects and implications that this has throughout the process. From the signing of the deed to the scenarios in the event of the death of the owner, there are several factors that must be taken into account to secure the property and avoid future inconveniences.
In Argentina, there are 22 banks that offer mortgage loans adjusted by the Purchasing Power Unit (UVA), that is, with installments that vary with inflation. Although there were a large number of inquiries at that time, it is only now, in CABA and in the province of Buenos Aires, that this impact is beginning to be noticed in the surveys of deeds carried out by the Notary Associations of each district.
In CABA, 416 mortgage deeds were formalized, 133.7% more than the same month last year and 31.6% more in the year-to-date, with 1,265 deeds. In the province of Buenos Aires, mortgage credit also resurged with 747 deeds in August, 63.1% more than in July and 30.4% year-on-year growth. The data for September will be known soon.
Economist Federico González Rouco , from the consulting firm Empiria, explained to Infobae that “ in August, UVA mortgage loans were granted for $67 billion (approximately USD 50 million) and in September they exceeded USD 100 million, something that had not happened for six years. This represents the largest volume of credit since the end of 2018 and double that of August, which in turn was triple that of July, which had already been triple that of June. This sequence reflects the accelerated pace of growth.”
However, González Rouco warned that, in perspective, loans are still 80% below the peak reached in 2017-2018 and that these levels are not likely to recover in the short term, due to the current social situation and salaries , which are considerably lower than at that time. “Even so, this increase is within expectations, since the 2020-2023 period was the one with the lowest mortgage credit in Argentine history,” he added.
When applying for a mortgage loan, it is essential that a trusted notary supervises the process and controls the required documentation, including certificates from the Property Registry.
Jorge De Bártolo , president of the College of Notaries of Buenos Aires (CECBA), highlighted in a seminar organized together with Reporte Inmobiliario and various banks that “a secure title ensures a secure credit, because the notary guarantees that the seller is in perfect legal conditions to sell.”
In mortgage transactions, the bank usually appoints the notary who will be involved in the mortgage deed. However, the buyer has the right to choose his own notary to sign the deed of transfer of ownership. “This is supported by article 1 of law 25.093 of 1999, which requires financial institutions to respect the designation of professionals agreed upon in the sales contract, always in compliance with consumer protection and competition laws,” explained notary Juan de Dios Troisi , member of the CECBA.
The process of buying and selling a home begins with a tour to find out the conditions of the property (Illustrative Image Infobae)
Mortgage loans are a key tool for accessing housing, whether for the purchase of a property, its construction or expansion. When applying for a loan, it is essential that families analyze their ability to pay. Financial institutions evaluate this through pay slips or sworn statements, ensuring that the applicant can cover the installments.
Notary Guillermo Aníbal Longhi , president of the College of Notaries of the Province of Buenos Aires, highlighted the importance of the role of the notary in the entire process. “The deed not only makes the buyer the owner, but also ensures that all the documentation related to the property is in order, avoiding future complications or litigation.”
In the case of mortgages, the deed guarantees that the property offered as collateral meets all legal requirements, from the validation of titles to the review of previous certificates. “This provides the legal security necessary to avoid complications during and after the transaction,” Longhi explained.
A mortgage is a “security right” that ensures the fulfillment of a loan. The entity lends money under conditions that the debtor must comply with. Longhi warned: “It is crucial that the applicant review the details of the deed, such as the loan amount and rates, to ensure that they match what was agreed. The conditions of the loan are imposed by the creditor, so it is key to carefully review the terms of the deed to avoid surprises.”
It is essential that the terms of the credit and responsibilities are clear in the deed (Illustrative Image Infobae)
The succession includes both assets and debts. Troisi said: “If you cannot continue paying, it is advisable to consult with the bank about the possibility of refinancing. The conditions vary according to the specific clauses of each mortgage.”
When buying with a mortgage, the property is transferred to the buyer, although the “security right” is registered in the name of the bank, which can cause confusion.
To avoid inconveniences in the event of death, it is advisable to take out insurance to cover the outstanding balance of the loan, freeing the heirs from this burden. Without insurance, the heirs will have to continue making payments, which could become complicated if they do not have the resources.
Longhi pointed out that if the debtor cannot continue paying, the deed already provides for a foreclosure process. If the conditions are not refinanced, the property could be auctioned off or the creditor could keep the property.
www.buysellba.com
October 23, 2024
The number of mortgage loans taken out for home purchases is gradually increasing. What are the aspects to pay attention to?
By Jose Luis Cieri
Access to these mortgage loans is also influenced by government policies and banking offerings, but it is important to know this to avoid complications (Illustrative Image Infobae)
When deciding to take out a mortgage loan, it is essential to know the legal aspects and implications that this has throughout the process. From the signing of the deed to the scenarios in the event of the death of the owner, there are several factors that must be taken into account to secure the property and avoid future inconveniences.
In Argentina, there are 22 banks that offer mortgage loans adjusted by the Purchasing Power Unit (UVA), that is, with installments that vary with inflation. Although there were a large number of inquiries at that time, it is only now, in CABA and in the province of Buenos Aires, that this impact is beginning to be noticed in the surveys of deeds carried out by the Notary Associations of each district.
In CABA, 416 mortgage deeds were formalized, 133.7% more than the same month last year and 31.6% more in the year-to-date, with 1,265 deeds. In the province of Buenos Aires, mortgage credit also resurged with 747 deeds in August, 63.1% more than in July and 30.4% year-on-year growth. The data for September will be known soon.
Economist Federico González Rouco , from the consulting firm Empiria, explained to Infobae that “ in August, UVA mortgage loans were granted for $67 billion (approximately USD 50 million) and in September they exceeded USD 100 million, something that had not happened for six years. This represents the largest volume of credit since the end of 2018 and double that of August, which in turn was triple that of July, which had already been triple that of June. This sequence reflects the accelerated pace of growth.”
However, González Rouco warned that, in perspective, loans are still 80% below the peak reached in 2017-2018 and that these levels are not likely to recover in the short term, due to the current social situation and salaries , which are considerably lower than at that time. “Even so, this increase is within expectations, since the 2020-2023 period was the one with the lowest mortgage credit in Argentine history,” he added.
When applying for a mortgage loan, it is essential that a trusted notary supervises the process and controls the required documentation, including certificates from the Property Registry.
Jorge De Bártolo , president of the College of Notaries of Buenos Aires (CECBA), highlighted in a seminar organized together with Reporte Inmobiliario and various banks that “a secure title ensures a secure credit, because the notary guarantees that the seller is in perfect legal conditions to sell.”
In mortgage transactions, the bank usually appoints the notary who will be involved in the mortgage deed. However, the buyer has the right to choose his own notary to sign the deed of transfer of ownership. “This is supported by article 1 of law 25.093 of 1999, which requires financial institutions to respect the designation of professionals agreed upon in the sales contract, always in compliance with consumer protection and competition laws,” explained notary Juan de Dios Troisi , member of the CECBA.
The process of buying and selling a home begins with a tour to find out the conditions of the property (Illustrative Image Infobae)
Mortgage loans are a key tool for accessing housing, whether for the purchase of a property, its construction or expansion. When applying for a loan, it is essential that families analyze their ability to pay. Financial institutions evaluate this through pay slips or sworn statements, ensuring that the applicant can cover the installments.
Notary Guillermo Aníbal Longhi , president of the College of Notaries of the Province of Buenos Aires, highlighted the importance of the role of the notary in the entire process. “The deed not only makes the buyer the owner, but also ensures that all the documentation related to the property is in order, avoiding future complications or litigation.”
In the case of mortgages, the deed guarantees that the property offered as collateral meets all legal requirements, from the validation of titles to the review of previous certificates. “This provides the legal security necessary to avoid complications during and after the transaction,” Longhi explained.
A mortgage is a “security right” that ensures the fulfillment of a loan. The entity lends money under conditions that the debtor must comply with. Longhi warned: “It is crucial that the applicant review the details of the deed, such as the loan amount and rates, to ensure that they match what was agreed. The conditions of the loan are imposed by the creditor, so it is key to carefully review the terms of the deed to avoid surprises.”
What happens if the policyholder dies?
If the credit holder dies, his or her heirs receive both the property and the debt and must continue making payments to avoid foreclosure.
It is essential that the terms of the credit and responsibilities are clear in the deed (Illustrative Image Infobae)
The succession includes both assets and debts. Troisi said: “If you cannot continue paying, it is advisable to consult with the bank about the possibility of refinancing. The conditions vary according to the specific clauses of each mortgage.”
When buying with a mortgage, the property is transferred to the buyer, although the “security right” is registered in the name of the bank, which can cause confusion.
To avoid inconveniences in the event of death, it is advisable to take out insurance to cover the outstanding balance of the loan, freeing the heirs from this burden. Without insurance, the heirs will have to continue making payments, which could become complicated if they do not have the resources.
Longhi pointed out that if the debtor cannot continue paying, the deed already provides for a foreclosure process. If the conditions are not refinanced, the property could be auctioned off or the creditor could keep the property.
www.buysellba.com
