Article 28 of the Mortgage Law is abolished
In a recent government publication in the BOE (Official State Gazette), we've seen several changes to the mortgage law.
Over the last 3 years our mortgage law has been amended in many ways, all of them badly needed given banks' lack of transparency towards their clients.
Among the changes made, the end of article 28 of the mortgage law stands out.
But what is article 28 of the mortgage law? Does it affect me selling my house? What can I do if I want to sell my house? When is it abolished?
What is article 28 of the mortgage law?
Article 28 of the mortgage law establishes that registrations of properties or rights do not take effect until two years after the deceased's death, where the heirs are not forced heirs and there is no will.
During those two years, other heirs may come forward to claim their share under inheritance law.
Does article 28 affect me selling my house?
It does, as it's a restriction on the property's title.
You could sell the property and, some time later, an heir nobody knew about could appear and claim part or all of the property.
In that case, the money would have to be returned to the buyer and the property's title to its rightful owner, with all the legal and financial problems that entails for everyone involved.
At Valoracasa Estate Agents Málaga we give you 5 tips for selling your flat quickly in Málaga
How can I sell my house subject to article 28 of the mortgage law?
First of all, you should inform the buyer, as they'll have to agree and accept the risk involved in the purchase.
If the buyer agrees and decides to buy your house with that restriction, you'll need to see whether they're buying with a mortgage or in cash.
If they're buying in cash, there's no great problem.
The notary will inform both parties at the signing of the deed and explain the possible risks, but it's the buyer who ultimately decides whether to buy the property.
It's different if the buyer needs a mortgage.
Hardly any banks finance the purchase of homes subject to article 28 of the mortgage law, although some do.
Which banks offer mortgages to buy a flat subject to article 28 of the mortgage law?
UCI (Unión de Créditos Inmobiliarios)
Banco Sabadell
When is it abolished?
According to the official publication in the BOE, it is abolished from 3 September 2021.
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