Buying a home is, for many, the most important step of their lives. But also, according to lawyer Andrés Millán, the most risky when it is done without understanding what is being signed. This lawyer and popularizer known on social networks as Lawtips has warned of the most common errors when it comes to buy a home. His diagnosis is forceful: “People buy houses without having a clue about anything.”
While banks and advisors talk about interest rates or of amortization periodsthe lawyer focuses on the basics: the rights and obligations that many ignore when sitting before the notary. And he summarizes it in four mistakes that can cost thousands of euros.
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1. Appointment with the notary 10 days before
The first of these rulings has to do with a little-known right. “By law you must make an appointment with the notary at least 10 days before signing the deed,” recalls Millán, who emphasizes that he cannot charge you anything extra.
2. You choose the notary
Furthermore, the lawyer clarifies an erroneous belief: “You choose the notary and not the bank, and you must pay half of it.” This prior meeting allows us to resolve doubts and review clauses before assuming a debt decades into the future, a step that many omit due to ignorance or blind trust in the financial institution. “Besides, he will charge you the same whether you spend 5 minutes or 5 hours, so ask him everything carefully,” he advises.
3. Handing over the house does not erase the debt
Millán’s second warning dismantles one of the most dangerous errors. “Be careful, the mortgaged house is a mere guarantee for the loan,” he emphasizes. Unlike what happens in the United States, in Spain it is not enough to return the home to pay off the debt.
The lawyer explains that the mortgage is a security right that is added to the personal obligation to pay. In other words: “You respond with all your present and future assets until you pay off your debt,” he explains. If the amount obtained in the auction does not cover the total, the bank can seize the debtor’s payroll, accounts or assets.
Furthermore, this warning also has to do with guarantors. Many parents or family members agree to sign for a child thinking that they are only responsible for their salary and in many cases this can be a mistake. “The guarantor responds with all of his present and future assets, not only with his salary, as many believe,” explains the lawyer.
A gesture of trust that, if the owner stops paying, can make the guarantor jointly responsible for all outstanding debt.
4. The most common illegal charge: the cancellation fee
The fourth point of the video reveals a practice that some banks continue to apply improperly: charging for loan cancellation. “The bank cannot charge you a commission for having finished paying the mortgage in the last installment,” Millán insists.
Nor for issuing the zero debt certificate, something that the Bank of Spain considers illegal. If an entity attempts to apply that charge, the customer can claim it as an abusive practice.
Knowing what to sign, choosing the right notary and knowing the rights that the law guarantees can mean the difference between a safe purchase and financial ruin. In a country where 80% of the population lives in self-owned housingthe lawyer remembers that understanding the fine print of a mortgage is as important as paying it.