loan arrangement costs

• The valuation ( Tasación ). Whether you need a mortgage or not, when deciding on the purchase of real estate you should consider if the property you want to buy is really worth the price the seller is asking for it. The best way to check this is to ask an expert to appraise the real estate in question. That is the valuation. Moreover, if you need financing, as the maximum amount of the loan depends on the value of the property, the bank needs the valuation to determine it.
• The Certification of non-encumbrance ( Nota simple de cargas ), issued by the Land Registry makes sure that your property is not affected by a former mortgage or other encumbrances.
• The fees for Notary, Land Registry and Solicitor or Legal Advisor.

As well as the real estate purchase, the mortgage is a public contract. The Transfer Tax ( AJD ) has to be paid for every transaction that requires a public certification. In this case it varies between 0.5% and 1.5% on the mortgage amount.