Glossary Real Estate Terms

Advance Repayment Total or partial refund of a credit before agreement date. It must usually comply with commission which varies according to the interest of loan. A.P.I. Real Estate Agent. Arras Amount of money the buyer gives to the seller like a proof of buying the property in a specified period. Guarantor Subject who guarantees a loan and assumes responsibilities for payment in the event the borrower doesnt pay for the debts or interests. Cancellation End of mortgage by the fact of debts. Capital Amount of a mortgage loan or total of the debt without interests. Registration Certificate Document prepared by Land Registry in which are shown the financial burdens of a property. Cirbe Risks Information Central of The Bank of Spain or where financial institutions can check, authorized by clients, the risk and arrears of the people interested in borrowing a mortgage. Opening Commission Amount of money you spend when you have a loan. They are considered administrative costs, computing and management expenses. This is paid once only and it is usually a percentage of the borrowing money. Advance Payment Cancellation Payment by writing off a debt in advance. For a mortgage loan it is usually to pay 1% and for a personal loan 3%, depending on agreement with the bank. Replacement Commission Amount to be paid out of the money you owe in case you change the bank to improve conditions with another bank. Land Registry Costs Costs from registration of mortgage in Land Registry. Fee Amount to be paid which includes money plus interests. Discriminatory Reviewed amount which is added to reference index (variable amount) to calculate. Public Title Deed This is definitive contract of sale that is signed in notarys office and attributes to buyer the property. Euribor It is an official reference index which is the average of daily interest types, applied to operations for one year in the market of bank deposits in countries with the Euro currency, between the 64 banks with more business level. Property Plot or town property that can be registered in Land Registry. Bond This is money which is given on account to keep the right to buy a property. Personal guarantee It is considered the patrimony of the mortgager which consists of every present and future possession. It is a guarantee for fulfilling every obligation. It is possible that another person, not the mortgager, can be responsible for the debt with his possessions. Notary expenses These are expenses from Notary. Agency expenses These are expenses from title deed, taxes settlement and Land Registry management. Mortgage Mortgage gives warranty that some obligations like loans and instalments will be kept. As well as monthly instalment it guarantees payment of interests, arrears, costs and expenses for payment failure. IBI This is Real Estate Tax or city tax which charges the ownership of a property. Documented legal tax This duty is a percentage of the sum of mortgage responsibilities and it is different depending on buying place and property features. Property transfer tax Tax only applied to second hand properties which taxes property transfers. It changes depending on the buying place (6% or 7% is usual).