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Mortgage loans: who chooses the notary, what fees are paid, and what points to review before signing - Infobae
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When it comes to homeownership, choosing a notary public is a key factor that impacts the security and transparency of your purchase. What are the buyer's rights and why is it important to review each document before finalizing the real estate transaction?
By Jose Luis Cieri
What rights does the buyer have in this instance, how is the notary's role divided between the bank and the buyer, and why reviewing each document is essential before signing (Illustrative image Infobae)
When purchasing a home with a mortgage, choosing a notary is a key decision that defines who will look after the buyer's interests and ensure the transaction is secure.
In a context of the reactivation of mortgage lending —according to data from the Notaries Association of the City of Buenos Aires, some 1,000 transactions are already registered monthly through this channel —the choice of notary plays a fundamental role in ensuring the transparency of each transaction.
When financing a purchase, the notarial process not only involves signing the deed of sale, but also establishing the mortgage, which requires coordination between the parties and the bank.
In this type of transaction, two distinct legal acts are involved. On the one hand, the deed of sale, in which the buyer has the right to choose their trusted notary.
On the other hand, the mortgage deed, a document that establishes the real estate security in favor of the bank, is the financial institution itself that designates the notary who will certify that part of the transaction. This division of roles is regulated by Law 25,093 and Law 404 of the City of Buenos Aires, which protects the right of buyers to choose who legally represents them in the deed of transfer of ownership.
Beatriz Álvarez , secretary of the Buenos Aires Notaries Association, explained that exercising this right is key to safeguarding the buyer's interests. "It is very important that every buyer has a trusted notary who can advise them from the beginning, review the legal status of the property, analyze each clause of the purchase agreement, and accompany them throughout the entire process until the final signature," she noted.
He also emphasized that, in a transaction involving bank financing, it is necessary to coordinate early with the bank's notary to avoid unnecessary delays.
Jorge De Bártolo , president of the Association of Notaries of Buenos Aires City, added that the role of the notary chosen by the buyer is not only to "certify" the transaction, but also to ensure the legal security of the purchase. From the reservation of ownership, the notary can intervene to ensure that the seller has all the documentation in order, that there are no outstanding debts or liens on the property, and that the conditions agreed upon by the parties are correctly reflected in the deed.
"A secure title makes for a secure loan," De Bártolo emphasized. This means the notary must conduct a complete review of the property titles from the last 20 years, review every history of the property, and request all relevant certificates from the Real Estate Registry.
If there are irregularities or key documents are missing, the process can be slowed down, causing delays that, in a context of inflation, can translate into higher costs for the buyer.
In the case of mortgage deeds, which are the responsibility of the bank-appointed notary, the additional cost is around 1%; "however, in many cases, this amount is absorbed by the financial institution. Furthermore, he noted that in the city of Buenos Aires, there is a key tax exemption for the current market: deeds for first-time homes worth up to $205 million are exempt from stamp tax , which eases the tax burden for those acquiring their first property," Álvarez clarified.
Choosing a notary is a key step when purchasing a home with a mortgage, as it guarantees the legal security of the transaction and protects the buyer's interests (Illustrative Image: Infobae)
After that amount, the surplus is charged at 3.5% divided between the two parties (1.75% for each side).
This early coordination is key to preventing administrative delays from impacting the final costs of the transaction, especially in transactions agreed upon in dollars or tied to the value of the property.
Finally, both Álvarez and De Bártolo agreed that, in a context of greater access to credit, it is essential that each buyer understand their rights and take an active role in deciding with whom they will execute the deed.
Since the reappearance of mortgage loans, the real estate market has rebounded and closed 2024 with the highest level of deeds since 2017, surpassing 54,000 transactions in Buenos Aires . Of that total, approximately 15% were completed through bank financing.
Choosing a trusted notary who will explain each step and detail the terms of the contract is not just a formality, but a key tool to ensure that the dream of owning a home isn't complicated by unforeseen legal issues or hidden costs.
www.buysellba.com
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www.infobae.com
When it comes to homeownership, choosing a notary public is a key factor that impacts the security and transparency of your purchase. What are the buyer's rights and why is it important to review each document before finalizing the real estate transaction?
By Jose Luis Cieri
What rights does the buyer have in this instance, how is the notary's role divided between the bank and the buyer, and why reviewing each document is essential before signing (Illustrative image Infobae)
When purchasing a home with a mortgage, choosing a notary is a key decision that defines who will look after the buyer's interests and ensure the transaction is secure.
In a context of the reactivation of mortgage lending —according to data from the Notaries Association of the City of Buenos Aires, some 1,000 transactions are already registered monthly through this channel —the choice of notary plays a fundamental role in ensuring the transparency of each transaction.
When financing a purchase, the notarial process not only involves signing the deed of sale, but also establishing the mortgage, which requires coordination between the parties and the bank.
In this type of transaction, two distinct legal acts are involved. On the one hand, the deed of sale, in which the buyer has the right to choose their trusted notary.
On the other hand, the mortgage deed, a document that establishes the real estate security in favor of the bank, is the financial institution itself that designates the notary who will certify that part of the transaction. This division of roles is regulated by Law 25,093 and Law 404 of the City of Buenos Aires, which protects the right of buyers to choose who legally represents them in the deed of transfer of ownership.
Beatriz Álvarez , secretary of the Buenos Aires Notaries Association, explained that exercising this right is key to safeguarding the buyer's interests. "It is very important that every buyer has a trusted notary who can advise them from the beginning, review the legal status of the property, analyze each clause of the purchase agreement, and accompany them throughout the entire process until the final signature," she noted.
He also emphasized that, in a transaction involving bank financing, it is necessary to coordinate early with the bank's notary to avoid unnecessary delays.
Jorge De Bártolo , president of the Association of Notaries of Buenos Aires City, added that the role of the notary chosen by the buyer is not only to "certify" the transaction, but also to ensure the legal security of the purchase. From the reservation of ownership, the notary can intervene to ensure that the seller has all the documentation in order, that there are no outstanding debts or liens on the property, and that the conditions agreed upon by the parties are correctly reflected in the deed.
"A secure title makes for a secure loan," De Bártolo emphasized. This means the notary must conduct a complete review of the property titles from the last 20 years, review every history of the property, and request all relevant certificates from the Real Estate Registry.
If there are irregularities or key documents are missing, the process can be slowed down, causing delays that, in a context of inflation, can translate into higher costs for the buyer.
Costs to take into account
Álvarez also detailed the costs associated with notarial intervention. In the deed of sale, the notary's fees can reach up to 2% of the property's value.In the case of mortgage deeds, which are the responsibility of the bank-appointed notary, the additional cost is around 1%; "however, in many cases, this amount is absorbed by the financial institution. Furthermore, he noted that in the city of Buenos Aires, there is a key tax exemption for the current market: deeds for first-time homes worth up to $205 million are exempt from stamp tax , which eases the tax burden for those acquiring their first property," Álvarez clarified.
Choosing a notary is a key step when purchasing a home with a mortgage, as it guarantees the legal security of the transaction and protects the buyer's interests (Illustrative Image: Infobae)
After that amount, the surplus is charged at 3.5% divided between the two parties (1.75% for each side).
Deadlines
Another important aspect is timing. De Bártolo insisted that as soon as the loan process begins, the buyer should contact their notary. "If we work from day one, we can anticipate any problems with the documentation, expedite obtaining the certificates, and avoid last-minute setbacks," he stated.This early coordination is key to preventing administrative delays from impacting the final costs of the transaction, especially in transactions agreed upon in dollars or tied to the value of the property.
Finally, both Álvarez and De Bártolo agreed that, in a context of greater access to credit, it is essential that each buyer understand their rights and take an active role in deciding with whom they will execute the deed.
Since the reappearance of mortgage loans, the real estate market has rebounded and closed 2024 with the highest level of deeds since 2017, surpassing 54,000 transactions in Buenos Aires . Of that total, approximately 15% were completed through bank financing.
Choosing a trusted notary who will explain each step and detail the terms of the contract is not just a formality, but a key tool to ensure that the dream of owning a home isn't complicated by unforeseen legal issues or hidden costs.
www.buysellba.com
