When we are about to buy or sell a property, normally, by having conversations with both the bank and professionals in my sector, we usually use a series of real estate terms that can sometimes be difficult to understand, for that, I have compiled the following dictionary:
AENOR
It is an entity recognized by the Ministry of Industry and Energy, whose objective is to contribute, through the development of standardization and certification activities and other related to them, to improve the quality of companies, their products and services, as well as protect the environment.
AGENCIA INMOBILIARIA / REAL ESTATE AGENCY
Professional office whose main activity is the intermediation in the purchase, sale and lease of all types of real estate.
AMORTIZACIÓN / AMORTIZATION
Payment or extinction of a debt. Total or partial repayment of a loan.
AMORTIZACIÓN ANTICIPADA / EARLY REPAYMENT
It is the total or partial refund of a credit before the agreed date. It is normally subject to a commission. This fee varies according to the interest rate, if it is fixed the fee is higher than if the interest is variable.
ARANCELES / ARANCELS
The scale of commissions, brokerages, or fees that members of a collegial profession charge their clients.
ARRENDAMIENTO / LEASE
There are different types of leasing depending on the object of the same: goods, works or services. In the leasing of goods, one of the parties (lessor) undertakes to give to the other (lessee) the enjoyment or use of a good for a certain time and at a certain price. In the lease of works or services, one of the parties (lessor) undertakes to carry out a work or to provide the other (lessee) with a service for a certain price.
ASESOR FISCAL / TAX ADVISOR
Liberal professional who advises natural or legal persons on taxes and tax matters.
BASE IMPONIBLE / TAXABLE BASIS
Tax magnitude, expressed in cash or factual elements, which is used as a starting point for calculating the amount of tax to be paid by the taxpayer.
BONO LIQUIDABLE / TAXABLE BOND
It is the Tax Base minus the reductions established by law (for example, contributions to pension plans or food aid).
BONOS DEL TESORO / TREASURY BONDS
Government debt maturing in less than 18 months, issued at a discount and to the bearer.
CADENCIA
Frequency with which interest rate changes are made on loans contracted at a variable rate. This periodicity normally varies between one and three years.
CANCELACIÓN ANTICIPADA / EARLY REPAYMENT
Total and anticipated amortization of the loan. Normally subject to a fee, which varies depending on the interest rate of the loan. In general, if the interest rate is fixed, the fee is higher than if the interest rate is variable.
CANCELACIÓN REGISTRAL / REGISTRY CANCELLATION
The cancellation of a mortgage loan must be recorded in the Land Registry. To do this it is necessary to sign a deed of cancellation and pay the Tax on Documented Legal Acts. This deed is registered in the Registry, cancelling the mortgage charge.
CAPACIDAD DE LOS CONTRATANTES / CAPACITY OF THE CONTRACTING PARTIES
Legal capacity to grant the contract.
CAPITAL AMORTIZADO / AMORTIZED CAPITAL
Part of the loan or credit already paid.
CAPITAL PENDIENTE / OUTSTANDING CAPITAL
Part of the loan or credit that remains to be paid.
CAPITULACIONES MATRIMONIALES / MARRIAGE SETTLEMENTS
Contract between spouses that regulates the property regime within the marriage.
CARENCIA / LEGAL
A period within the life of a loan during which only interest is paid and no principal is amortized. The duration of this period is a maximum of two years.
CARGAS / CHARGES
Limitations to the domain of a property. They consist of a public document and are registered in the Land Registry. They do not always imply economic rights. Examples of charges are usufructs, resolutory conditions, censuses, etc.
CATASTRO
Census and statistical census of rustic and urban properties. Consult here: SEDE DEL CATASTRO ONLINE
CÉDULA DE CLASIFICACIÓN DEFINITIVA / DEFINITIVE CLASSIFICATION CARD
Certificate issued by the different housing councils of the corresponding Autonomous Communities, which specifies the characteristics of the Officially Protected Housing (P.P.O.), as well as its maximum sale and rental prices.
CERTIFICADO REGISTRAL / REGISTRATION CERTIFICATE
Document that issues and legitimates the Land Registry, which exposes the situation of loads of a farm.
CLÁUSULA SUELO / SOIL CLAUSE
he Land Clause is a clause included in many mortgage contracts that establishes a minimum interest to be paid on the monthly instalments of the mortgage, regardless of the interest marked by the market. According to the Judgment of the Court of Justice of the European Union of 21 December 2016, banks must return the amounts paid in excess by reason of this clause, from the date of formalization of the mortgage.
COMISIÓN / COMMISSION
A contract by which someone undertakes to do something on behalf of another.
COMISIÓN DE ADHESIÓN / ADHESION COMMISSION
General or standardised contracts drawn up by the seller or service provider so that they are signed and assumed by the buyer.
COMISIÓN DE APERTURA / OPENING COMMISSION
Percentage of the loaned capital or of the limit of the credit that is paid only once when they are constituted. A minimum amount is usually agreed.
COMISIÓN DE RECLAMACIÓN DE IMPAGADOS / DUNNING COMMISSION
Fixed amount accrued in the event of non-payment of a receipt.
COMISIÓN DE SUBROGACIÓN / SUBROGATION COMMISSION
Percentage applied to outstanding capital in the event that the borrower changes creditor entity.
COMISIONES ABUSIVAS BANCARIAS / ABUSIVE BANK CHARGES
Fees that are not due to a service effectively provided, and that have not been firmly requested by the client, such as Excess/Discovered fees, fees for claiming debit positions on current accounts, fees for claiming overdue debt on loans, fees for repayment of bills and/or receipts, and administration fees.
COMPRAVENTA / BUY AND SELL
Contract by which one of the contracting parties undertakes to deliver a certain good and the other to pay a certain price, in money or equivalent.
COMUNIDAD DE PROPIETARIOS / COMMUNITY OF OWNERS
Set of co-owners of a property divided into horizontal property.
CONDICIÓN RESOLUTORIA / RESOLUTORY CONDITION
Circumstance established in a contract which, if fulfilled, entails the annulment of the main effects that the contract would have produced.
CONSTITUCIÓN DE UN PRÉSTAMO HIPOTECARIO / CONSTITUTION OF A MORTGAGE LOAN
It takes place at the moment of the inscription of a mortgage in the corresponding writing in the Registry of the Property.
CONTENIDO / CONTENTS
Set of goods found inside the dwelling, in dependent premises or in courtyards and gardens belonging to the same except garages and common areas. The content includes furniture, clothing, household goods, provisions, individual antennas, jewellery and electrical appliances. Motor vehicles and mopeds are not considered.
CONTINENTE / CONTINENT
Set of main constructions and accessories, with their installations, both fixed and those necessary for the solidity of the dwelling, decoration, hygiene or comfort. Includes:
fixed heating, gas, water or electricity installations;
walls, floors and ceilings;
doors and windows;
false ceilings, carpets, wood adhered to walls, floors and ceiling;
built-in wardrobes, sanitary ware, awnings, collective antennas;
garages, storage rooms and warehouses;
fences, walls, gardens, swimming pools, greenhouses, recreational and sports areas in horizontal properties and single-family homes.
CONTRATISTA / CONTRACTOR
It is said of the person who executes a work under contract.
CONTRATO / CONTRACT
Legal convention manifested in legal form, by which one or more persons are bound in favor of another or others to the performance of a service to give, to do or not to do.
CONTRATO DE ADHESIÓN / ADHESION CONTRACT
General or standardized contract drawn up by the seller or service provider to be signed and assumed by the buyer.
CUOTA / FEES
Each of the monthly, quarterly or half-yearly payments that are made during the life of the loan. During the grace period, the installment consists of interest only. However, if the loan is in the repayment period, the installment comprises interest and principal repayment.
DEDUCCIONES EN LA CUENTA / DEDUCTIONS IN THE ACCOUNT
In the income tax return, certain amounts that are subtracted from the quota for certain circumstances that affect personal aspects of the taxpayer, legally established.
DIFERENCIAL / DIFFERENTIAL
Percentage added to the reference index value to obtain a new interest rate to be applied in each revision.
DIVISIÓN EN PROPIEDAD HORIZONTAL / HORIZONTAL PROPERTY DIVISION
Act documented in public title, by means of which a property is divided into several and different independent registry estates, with each of them being assigned a coefficient of co-ownership or participation in the total of the property. It is registered in the Land Registry.
DOCUMENTO NOTARIAL / NOTARIAL DOCUMENT
Any document executed by a public notary.
DOCUMENTO PRIVADO / PRIVATE DOCUMENT
With respect to a legal, commercial, administrative, etc. act, it is the one that gathers the will of the person who grants it. For example: if it is a purchase-sale, it includes the will of the parties to transfer the ownership of a property.
DOCUMENTO PÚBLICO / PUBLIC DOCUMENT
Private document authorized by a notary, which empowers you to be registered in the land register. It is commonly known as deed. The most frequent public documents are: mortgage, purchase-sale, new construction, horizontal division, etc.
EJECUCIÓN HIPOTECARIA / FORECLOSURE
It is the executive procedure through which is ordered the sale of a real estate that was encumbered with a mortgage by default of the debtor of the obligations guaranteed with the mortgage.
ELEVAR A PÚBLICO / ELEVATE TO PUBLIC
Incorporate a private document into the notary’s protocol (archive).
ENTIDAD FINANCIERA / FINANCIAL INSTITUTION
Bank, Savings Bank or any other entity acting in the financial market.
ESCRITURA / PUBLIC DEED
Public document signed and ratified by a notary. Subsequently, it is registered in the Land Registry. In the case of homes, the most relevant deeds are those of purchase and sale, mortgage and declaration of new work.
ESCRITURA DE CANCELACIÓN DE HIPOTECA / MORTGAGE CANCELLATION DEED
Document granted before a notary by which a mortgage is terminated when the guaranteed obligation has been fulfilled, for its inscription in the Land Registry.
ESCRITURA DE COMPRAVENTA / DEED OF SALE
A document issued before a notary by which a thing is transmitted in exchange for a price.
ESCRITURA DE HIPOTECA / MORTGAGE DEED
A document issued before a notary public in which one or more real estate properties are affected as a guarantee for one or more operations.
ESCRITURA DE PROPIEDAD / PROPERTY DEED
Public document by which the ownership of a house is acquired, susceptible of its inscription in the Registry of the Property.
EURIBOR
The average price of the interest rate at which the most significant European financial institutions lend money to each other on the money market.
FE PÚBLICA / PUBLIC FAITH
Conformity to administrative level and to all effects of the veracity of the content of a document.
FIANZA / GUARANTEE
A contract by which a person (guarantor) personally commits or commits certain assets of his own as security for the performance of an obligation of another person (debtor-faithful) towards a third party (creditor). If the debtor defaults, the creditor may claim from the guarantor.
FINCA
Immovable property, rustic or urban, susceptible of being inscribed in the Registry of the Property.
GARANTÍA / WARRANTY
Action to ensure, for a period of time, the proper functioning of a property that is sold and repaired free of charge in the event of a breakdown.
GARANTÍA HIPOTECARIA / MORTGAGE GUARANTEE
Insurance through the affection of one or several real estate properties to the fulfillment of obligations.
GARANTÍA PERSONAL / PERSONAL GUARANTEE
The debtor’s assets consisting of all present and future assets and guaranteeing the fulfilment of any obligation. This guarantee can also be provided by a third party.
GASTOS A CARGO DEL PRESTATARIO EN UN PRÉSTAMO HIPOTECARIO / EXPENSES TO BE BORNE BY THE BORROWER ON A MORTGAGE LOAN
Amounts that must be paid as a consequence of carrying out certain necessary actions such as appraisal, execution of public deed, payment of taxes, etc.
GASTOS DE ESTUDIO Y FORMALIZACIÓN DE LA HIPOTECA / COSTS OF STUDYING AND FORMALISING THE MORTGAGE
Expenses prior to the constitution of a mortgage loan in which the financial entity incurs to start such operation and which are passed on to the client/borrower. Although in December 2015 the Supreme Court considered null and void the clauses on mortgage formalization expenses as they are considered abusive, making the bank responsible for such expenses as it is the only beneficiary of their payment and that are the costs of payment of notary, agency, taxes and appraisal that are usually paid when the mortgage is signed.
GASTOS DE REGISTRO DE LA PROPIEDAD / PROPERTY REGISTRATION FEES
Expenses derived from the inscription of the mortgage in the Registry of the Property. They are calculated on the basis of mortgage liability and according to a legally established percentage rate.
GESTOR ADMINISTRATIVO / ADMINISTRATIVE MANAGER
A legally authorised liberal professional whose activity, among others, is the processing and management of mortgage loan deeds.
HIPOTECA / MORTGAGE
A real right of guarantee of an obligation, constituted on real estate, and the property may remain in the possession of its owner. It confers the creditor the faculty to ask for the public sale of these and to compensate with their price if the guaranteed obligation is not fulfilled.
HOMOLOGAR / APPROVAL
Validate or confirm something as being acceptable or good.
IMPUESTO / TAX
The pecuniary benefit required from private individuals by way of authority, definitively and without compensation, in order to cover public expenditure.
IMPUESTO DE LOS BIENES INMUEBLES (IBI) / PROPERTY TAX (IBI)
Municipal tax levied on the property of a property. It is charged annually and is calculated according to a percentage that is applied to the cadastral value.
IMPUESTO SOBRE ACTOS JURÍDICOS DOCUMENTOS (IAJD) / TAX ON LEGAL ACTS DOCUMENTS (IAJD)
Tax that is applied on acts formalized in public documents. In the case of mortgages, it is calculated on the mortgage liability which is of the order of 1´ times the capital of the loan. The IAJD may vary from community to community.
IMPUESTO SOBRE EL INCREMENTO DEL VALOR DE LOS TERRENOS / TAX ON THE INCREASE IN THE VALUE OF LAND
Municipal tax levied on the increase in value of land. It is applied only in the purchase and sale. The law establishes that it is the seller who pays this tax. The agreements against must be reflected in the public deed of sale. The value of this tax depends on the situation of the house and the years since the last liquidation. This tax was known as Municipal Capital Gains Tax.
IMPUESTO SOBRE EL VALOR AÑADIDO (IVA) / VALUE ADDED TAX (VAT)
Indirect tax levied on the value of the sale. It is currently set at 7%.
IMPUESTO SOBRE TRANSMISIONES PATRIMONIALES (ITP) / TAX ON CAPITAL TRANSFERS (ITP)
All sales of second-hand or successive properties are subject to this tax. It currently stands at around 6%, but certain autonomous communities set special rates and conditions.
INDICE DE LA CONFEDERACIÓN ESPAÑOLA DE CAJAS DE AHORRO / INDEX OF THE SPANISH CONFEDERATION OF SAVINGS BANKS
It is a rounded to eighth average of personal loans. It is formalized monthly for terms of one year to less than three years, and the arithmetic measure eliminating the extreme values of the loans with mortgage guarantee for acquisition of free housing formalized monthly for terms of three years or more.
INDICE DE REFERENCIA / REFERENCE INDEX
Value of the mortgage or financial market that is used for interest rate revisions of variable rate loans.
INDICE DE REFERENCIA DE PRÉSTAMOS HIPOTEACARIOS CONJUNTO DE ENTIDADES / REFERENCE INDEX OF MORTGAGE LOANS SET OF ENTITIES
Simple average of the average interest rates weighted by the principal of mortgage loan operations with a term equal to or greater than three years, for the acquisition of free housing, which have been initiated or renewed by banks, savings banks and mortgage credit companies in the month referred to in the index.
INDICE DE REFERENCIA DEUDA PÚBLICA / PUBLIC DEBT REFERENCE INDEX
Average of the securities issued, by the State, materialized in book entries and with maturity between two and six years.
MORTGAGE INDEX OF MORTGAGE LOANS TO SAVINGS BANKS
Simple average of the average interest rates weighted by the principal of the loan operations with a mortgage guarantee with a term equal to or greater than three years, for the acquisition of a free home, which have been initiated or renewed by the group of savings banks in the month referred to in the index.
INDICE HIPOTECARIO DE PRÉSTAMOS HIPOTECARIOS CAJAS / REFERENCE INDEX OF MORTGAGE LOANS BANKS
Simple average of the average interest rates weighted by the principal of the mortgage loan operations with a term equal to or greater than three years, for the acquisition of free housing, which have been initiated or renewed by the set of banks in the month referred to in the index.
INDICE REFERENCIA EURIBOR / EURIBOR REFERENCE INDEX
A measure of the interbank rate between all central banks in the European Union which is applied as a reference rate for credit and loan operations.
INDICE REFERENCIA MIBOR / MIBOR REFERENCE INDEX
Simple average of the daily interest rates at which one-year term transactions in the interbank deposit market have been crossed, during the working days of the corresponding legal month. Cross transactions do not include those carried out at rates that are clearly far removed from the general market trend. On working days on which 1-year operations in the Spanish interbank deposit market have not been crossed, the spot rate published by the European Banking Federation (EURIBOR) will be used as the data for calculating the monthly average.
It lost its official character as an index recommended by the Bank of Spain for the mortgage market for transactions signed on 31 December 1999.
INMUEBLE
Property such as land, buildings, constructions and mines, and ornaments, artefacts or rights that the law considers not to be movable.
INTERÉS / INTEREST
Percentage that is applied to the outstanding principal of a loan to calculate the interest payable by the borrower and that forms part of the installment.
INTERÉS DE DEMORA / INTEREST ON ARREARS
Yields that the borrower will pay for as long as he or she is late in paying a past due debt. They are always higher than ordinary interest.
INTERESES ORDINARIOS / ORDINARY INTEREST
Yields a lender receives for the amount of time a lender lends a certain amount of money.
LEGISLACIÓN HIPOTECARIA / MORTGAGE LEGISLATION
Set of rules regulating acts and contracts relating to ownership and other rights in rem over real property through the Land Registry.
LEY DE CONDICIONES GENERALES DE CONTRATACIÓN / LAW ON GENERAL CONTRACTING CONDITIONS
Law 7/98 of 13.4.98, published in the BOE of 14.4.98, whose purpose is to protect the legitimate interests of consumers and users in relation to the contractual documents signed.
LEY DE REGULACIÓN DEL MERCADO HIPOTECARIO / MORTGAGE MARKET REGULATION ACT
Law 2/81 of 25.3.81, published in the BOE of 15.4.81, which establishes a structure for the financing of certain activities through the issue by financial institutions of mortgage securities.
LICENCIA DE OBRA / BUILDING PERMIT
Municipal permit required for the initiation of works or architectural modifications in a building.
MERCADO HIPOTECARIO / MORTGAGE MARKET
The one in which the issue of mortgage securities guaranteed with mortgage credits is carried out.
MERCADO MONETARIO / MONEY MARKET
One in which both money and money-substitute financial assets are exchanged.
MINUTA DE ESCRITURA DE PRÉSTAMO HIPOTECARIO / MORTGAGE DEED MINUTE
A written draft containing the agreements to which the parties to a loan have reached.
INTERNATIONAL STANDARD ISO-9002
Quality system that serves as a model to ensure quality in the production, installation and after-sales service of a given service or product.
NOTARIO/A / NOTARY
An official authorized by law to give public testimony of contracts, wills, and other extrajudicial acts.
NOTIFICACIÓN JUDICIAL / JUDICIAL NOTICE
Communication by a court or tribunal to the parties involved in a proceeding.
NOVACIÓN / NOVATION
Substitution of an obligation by a later one that extinguishes the first one.
NUDA PROPIEDAD / NUDE PROPERTY:
It is that right of a person over a thing in which his relationship with it is to be alone and solely owner. As an owner, he has control over the thing, but does not have possession because it has been transferred through a right in rem called usufruct.
The nude property is the set of prerogatives that retains the owner of a thing, when that thing is subject to a property right (usufruct, or room for example) by a third party.
OBRA NUEVA / BRAND NEW BUILDING
Public document in which the existence of a building or the construction of a new one is declared. Its inscription in the Property Registry supposes the creation of a registered property due to the disappearance of the registered property of origin.
OFERTA VINCULANTE PARA NUEVAS HIPOTECAS / BINDING OFFER FOR NEW MORTGAGES
Document that credit institutions, according to the order of May 5, 1994 on the transparency of mortgage loans, are obliged to deliver to the customer, and that includes all the financial conditions of the mortgage loan offered. The validity of the offer is ten working days from its delivery date. This binding offer is mandatory for mortgage loans to individuals on housing with a capital equal to or less than 150,253.02 euros.
OFERTA VINCULANTE PARA SUBROGACIÓN DE HIPOTECAS ENTRE ENTIDADES FINANCIERAS / BINDING OFFER FOR SUBROGATION OF MORTGAGES BETWEEN FINANCIAL INSTITUTIONS
Document that the entity that wants to subrogate itself in a mortgage sends to the current borrowing entity with the new interest rate conditions that it will apply to the client in case he changes entity.
OPCIÓN DE COMPRA / PURCHASE OPTION
By paying a certain amount of money agreed between seller and buyer, the buyer acquires the right to buy a home under certain conditions and for a certain period of time. If the purchase of the house is not finally carried out, this amount of money is usually lost.
PACTOS SOBRE CESIÓN Y SUBROGACIÓN / COVENANTS ON ASSIGNMENT AND SUBROGATION
These have special relevance for the debtor, since if he wants to sell the mortgaged property, it is not essential to cancel the loan, but the buyer can take charge of it, discounting from the sale price the outstanding amount. This requires the consent of the credit institution.
PLAN OFICIAL DE LA VIVIENDA / OFFICIAL HOUSING PLAN
Plan developed by the Administration to facilitate the acquisition or rehabilitation of certain habitual dwellings for those people who meet certain economic and family circumstances.
PLUSVALÍA / PLUSVALY
Increase in the value of an asset for reasons other than the work or productive activity of its owner or possessor. Also, an increase in the value of land or property as a result of work or investments carried out by the administration or by the owner.
PRÉSTAMO HIPOTECARIO / MORTGAGE LOAN
A loan which, in addition to having the personal guarantee of the borrower, is additionally guaranteed by a home, property or property. Along with the repayment of the loaned capital, it also guarantees the collection of ordinary interest, interest on arrears, costs and expenses arising from a possible legal claim in the event of non-payment. It is formalised in a public deed that is registered in the Land Registry.
PRESTATARIO/A / BORROWER
A person who borrows money.
PRINCIPAL
Amount of a loan or credit. It is also called capital.
PROCEDIMIENTO DE EJECUCIÓN / ENFORCEMENT PROCEDURE
The way through which the financial institution can pay the unpaid debt of a loan if the borrower does not do so.
PROPIETARIO/A / OWNER
A person who has a right to a thing, especially real estate.
PROVISIÓN DE FONDOS / PROVISION OF FUNDS
Amount of money advanced to a professional on account of the final settlement he presents for his services.
PROYECTO DE EJECUCIÓN / EXECUTION PROJECT
Phase of the work that develops the basic project, with the complete determination of details and specifications of all materials, elements, construction systems and equipment. This phase can be carried out, in its entirety, before the start of the work or partially before and during the execution of it. Its regulatory content is sufficient to obtain the necessary collegiate visa to start work.
RECLAMACIÓN JUDICIAL / JUDICIAL CLAIM
A lawsuit or request made by one or more persons to one or more other persons through the courts and tribunals.
RENDIMIENTO DE CAPITAL MOBILIARIO / RETURN ON CAPITAL
In the Income Tax Return, the income of a taxpayer from the ownership or lease of their property.
REGISTRO DE LA PROPIEDAD / PROPERTY REGISTER
A public office whose function is to keep official books in which all the circumstances affecting the properties of the demarcation corresponding to the said Register are recorded.
REQUERIMIENTO JUDICIAL / COURT INJUNCTION
Imposes a duty on a person to make a certain statement of will or any other conduct thereof.
RESPONSABILIDAD HIPOTECARIA / MORTGAGE LIABILITY
This is the maximum amount for which each of the mortgaged properties is liable. It usually includes the principal amount of the loan, plus an amount referring to ordinary interest, another to default interest and another to costs and expenses.
SEGURO DE INCENDIOS / FIRE INSURANCE
Compulsory insurance on mortgaged properties. Its objective is to insure, during the term of the mortgage, the risks that may occur on the mainland of the mortgaged property.
SEGURO MULTIRRIESGO DEL HOGAR / MULTI-RISK HOME INSURANCE
Insurance that covers the possible damage that a home may suffer, both on the mainland and in the contents.
SEGURO VIDA DE AMORTIZACIÓN DE PRÉSTAMOS / LOAN REPAYMENT LIFE INSURANCE
Life insurance that guarantees, in the event of death and, optionally, absolute and permanent disability of the insured person, the cancellation of the loan.
SEÑAL O ARRAS
Anticipated amount of part of the purchase price of a sale from the buyer to the seller. This down payment underlines the firmness of the sales contract. If the buyer decides not to buy, he will lose the amount delivered, and if it is the seller who decides not to consummate the sale, he must return to the buyer what he delivered in advance plus another equal sum, if so agreed.
SERVICIO DE RECLAMACIONES DEL BANCO DE ESPAÑA / BANK OF SPAIN CLAIMS SERVICE
A body to which customers of any financial institution may turn when they consider that they have not received a sufficiently satisfactory response from the Institution’s Customer Ombudsman to a complaint.
SISTEMA FRANCÉS DE AMORTIZACIÓN / FRENCH AMORTISATION SYSTEM
System that consists of amortizing a loan so that the disbursements that are satisfied in each period are constant. The periods can be annual, half-yearly, quarterly or monthly. Since the quota is fixed and is made up of capital and interest, in the former interest will be paid mainly due to the fact that the debt is greater, while in the latter the most important component will be destined to amortize capital.
SITUACIÓN REGISTRAL / REGISTRY SITUATION
The current status or description of a property in the Land Registry, as well as its charges, liens, limitations, etc.
SOCIEDAD DE TASACIÓN / APPRAISAL COMPANY
A company legally authorised to value the maximum and minimum prices of an asset by means of expert appraisers (specialised personnel).
SUBASTA PÚBLICA / PUBLIC AUCTION
In case of foreclosure, sale or alienation of assets that are awarded to the highest bidder among all bidders. They can be judicial (by order of a Court or Tribunal) or extrajudicial (before a notary).
SUBROGACIÓN / SUBROGATION
Action by which the buyer of a property assumes the rights and obligations of another person by reason of a loan previously granted with guarantee of that property. It is a very common action when buying a new home directly from the developer of the same, which has obtained a mortgage loan to finance its construction. With the purchase of the property, the buyer has the option of subrogating in the mortgage responsibility that taxes the property, deducting from the purchase price the amount of the loan. The document where the subrogation materializes is the deed of sale itself. Also known as subrogation is the legal fact of substitution of the mortgagee.
SUBSIDIACIÓN / SUBSIDIATION
Amounts paid by the Public Administration to Financial Entities, as part of the payment of interest on loans intended to finance the purchase of Officially Protected Housing.
SUBVENCIÓN / SUBSIDY
Amounts paid as a non-refundable fund by the Public Administration to the purchasers of subsidized housing, as part of the payment thereof.
SUMISIÓN A FUERO / SUBMISSION TO JURISDICTION
The jurisdiction of the court that is to hear a case is provided by law. The legal norms that regulate it are obligatorily applied, but there can be exceptions, and one of these is the “submission to jurisdiction”. It consists in the expression of the contracting parties’ will that, for disputes arising between them, a particular court should be competent. In any event, submission is possible only in respect of territorial jurisdiction – hierarchical jurisdiction is not possible – and in respect of some legal proceedings.
SUPERFICIE COMPUTABLE / COMPUTABLE SURFACE
Constructed area plus the proportional part of the porter’s lodge, staircase, roof terrace, community garden, etc., which corresponds to an owner according to his share of co-ownership.
SUPERFICIE CONSTRUIDA / CONSTRUCTED AREA
All square meters of housing, including thickness of walls, sometimes patios and ventilation ducts.
SUPERFICIE CONSTRUIDA CON ELEMENTOS COMUNES / AREA BUILT WITH COMMON ELEMENTS
The entire constructed area of the dwelling and the proportional part of the common spaces of the building corresponding to it, according to the share of co-ownership.
SUPERFICIE ÚTIL / USEFUL SURFACE
All square meters of the dwelling, including balconies, but excluding walls. Roofs and patios are listed separately, although sometimes included as useful floor space.
TASA ANUAL EQUIVALENTE (T.A.E.) / ANNUAL EQUIVALENT RATE (A.R.E.)
Result of a mathematical-financial formula supervised by the Banco de España. It serves to compare the real cost of different offers. In particular, in the case of loans with variable interest, the APR is calculated assuming that the successive interests are those of the first revision, counted according to the last published value of the reference index.
TASACIÓN / APPRAISAL
Value of a property certified by companies set up for this purpose. Through this certificate, not only is the real value of the property known, but it also serves as a reference to obtain the necessary financing.
TIPO DE INTERÉS / INTEREST RATE
Percentage applied to the outstanding principal of a loan to calculate the interest payable by the borrower as part of the installment.
TIPO DE INTERÉS FIJO / FIXED INTEREST RATE
An interest rate that does not vary over the life of the transaction.
TIPO DE INTERÉS NOMINAL / NOMINAL INTEREST RATE
Interest of a transaction expressed as a percentage and for a given payment periodicity.
TIPO DE INTERÉS VARIABLE / VARIABLE INTEREST RATE
An interest rate that changes over the life of the transaction, based on a reference.
TÍTULO DE ADQUISICIÓN / ACQUISITION TITLE
Document by virtue of which the property that is now being transferred was acquired at the time by the seller.
TRANSPARENCIA / TRANSPARENCY
Ministerial Order that came into force on 11/8/94, which regulates certain matters relating to contracts for mortgage loans guaranteed with housing, when the borrower is a natural person and the amount of the loan is equal to or less than 150,253.03 euros.
This ministerial order and Circular 5/94 of the Bank of Spain which develops it, aim to protect the interests of customers of credit institutions, providing adequate information and protection of those who arrange mortgage loans.
VALOR CATASTRAL / CADASTRAL VALUE
Valuation that appears in the cadastre of a specific property.
VERIFICACIÓN REGISTRAL / REGISTRY VERIFICATION
It is the maturity prior to the date of a loan for any reason established by law or in the corresponding contract.
VIVIENDA DE PROTECCIÓN OFICIAL (V.P.O) / OFFICIALLY PROTECTED HOUSING (V.P.O.)
Social housing fulfils a series of conditions that benefit its buyers, both financially and fiscally. On the other hand, buyers must also meet established conditions in terms of ownership of property, family income, etc. in order to take advantage of its advantages.
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