Cancelación de Hipoteca | House Loan Cancellation

Today I was surprised when I visited a notary office to collect papers related to cancellation of a home loan on behalf of a friend. 

The friend is on a tour so I received a request from him to visit the office and collect the papers. 

Notary office is very close to my 🏠🏡 house so I accepted the request without hesitation & visited the notary office without any delay. 

Why was I surprised? The surprise came when the officer sitting in the notary office & attending to me for my request told me that now your friend is free to sell the house or maybe it is already sold.  

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La subida del Euríbor afecta a las hipotecas  

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This statement was like an electric shock for me. 

Then, another officer of the notary office came to assist the officer attending to me and who informed my friend by email to collect the papers related to cancellation of the house loan. 

I was surprised she gave the same statement that your friend is now free to sell the house or maybe it is already sold because he submitted his application in the middle of last year for these papers and we had them in our office for many months. 

It is clear from this statement that my friend was not in a hurry to get these papers. 

But why are they saying that now my friend is free to sell his house or create a suspicion saying it is already sold. My friend still lives in his house. 

Moreover, I collected the papers but I did not ask them the reason for saying this statement. Yes, I asked them whether my friend has done any more paperwork. They answered negatively. 

Now I had to attend a student whom I have been guiding for the last many years to improve his English, and of course, to improve my Spanish as well. I went to his house & during the talk, before starting our conversation in English & Spanish, I said to the parents of my student that I am coming from the notary office informing them that I visited the notary office to collect papers of the cancellation of the house loan of one of my friends. 

The father of the student immediately asked me if my friend is going to sell his house or has a plan to sell his house . I was surprised again because I am facing the same questions which had been asked in the notary office. 

Now I was 100% sure that there would be any indication very established in Spanish society related to if you do paperworks for cancellation of a house loan. 

The same parents informed me that they have already paid total amount of house loan of their house but they still have not done this paperwork because they consider it does not require if it is already paid 100% loan of house. 

What will change if a house owner does the paperworks for cancellation of a house loan? 

In the database of house registry it is written in one line that your house is registered associated with a house loan. 

If a house owner does paperwork to get a certificate stating cancellation of a house loan at the notary office and then submits these papers to the registry office, the officer of the registry office will remove this one line that your house is registered associated with a house loan. The parents informed me of this. 

But they asked me if one house owner already possesses a no-dues certificate from the bank stating that it has been paid 100% of the house loan, then what is the need of doing paperwork in the notary office to get a certificate stating cancellation of a house loan. The notary office will charge you 300-400 euros equivalent to 24000 - 32000 Indian rupees. Is there any way to avoid this cost? A quick question arises in the mind of anyone. 

I understand them very well and agree with their argument. Suppose, a house owner sells a house some day, then I think this should be enough that the house owner shows to the buyer of the house a no-dues certificate from the house loan providers, maybe from the bank, stating that the house owner has paid 100% of the house loan. 

The house owner is unable to hide the fact of a house loan because in the registry database, which is a public database, it is written that the house owner receives a house loan for purchasing the house. 

A house buyer can easily access this registry database by visiting the registry office of property and possessing an authorisation of the house owner to get access to registered data of the house. 

The house buyer inspects the database for finding, specifically, the current running house loan and any other type of house associated debts besides other information like area size, year of building construction , house structure and house location because this information helps the house buyer to make decisions for investment of money in purchasing the house. 

I live in Spain but I know a 'Finance Doctor" in India with whom you can consult if you want to do investment. You can email me your request. Of course, there will be consultation charge. But currently India is the best country for investment purposes. 

We continue with the issue which is under discussion in this article. How many real estate agencies are available all over the world . They have their offices everywhere to support their clients who are buyers or who are sellers of properties. A house is a property. In Spain we call them "Agencia Inmobiliaria". My friend also bought his house through Agencia Inmobiliaria. 

The house purchase process was very simple as my friend informed me. The agency invited my friend one day to visit the office. The officer of the real estate agency had a discussion with my friend to know his exact requirements. They signed on a paper that the agency will receive 5-10% of the purchase cost as a commission. After that they asked my friend to sit down and wait for their call or email. They never send emails with bogus advertisements of house sell or apartment on sale or book an apartment in a newly constructed building or invest money to book an apartment in a building which will be constructed. Of course, we can connect you with this Real State Agency of Spain but you have to contact us. 

Hopefully you have enjoyed the article and now your turn. You can buy a coffee for me which will encourage me to more articles. Of course, they will not be boring because they are based on personal experience. 

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