Banning letting, transferring or taxing the property or integral parts of the mortgaged property by the borrower without the consent of the financial institution.
Credit transfer waiver by the borrower and not by the lender and without notice: Waiver of a right that is imposed on one party and the other can exercise it normally. “The financial institution will be able to transfer part or all of its credit without having to give notice thereof to the borrower, waiving the right expressed in Article 242 of the Mortgage System”.
Liquidity agreement or unilateral liquidity of debt on behalf of the lender. In case a legal claim is made by the latter, without the borrower being able to object to such calculations, the financial institution is the one that calculates the debt owed when the contract is rescinded and claims everything.
Expenses paid by the borrower
Property valuation
Execution of documents, including the first copy for the creditor.
Property registry fees for registration, amendment, clarification or cancellation.
Taxes accrued on the loan. Payment for insurance policy against fire and buildings all risk are required and, even more unfair is, that this insurance policy is held by the Building Society or bank during the life of the loan. Expenses of an administrator to complete the formalities of ownership registration and other necessary documents.
An add-on is included which indicates that the financial institution reserves the right to substitute other expenses, in addition to the above, if it suits their interests.
It also states that … ” any costs relating to judicial or extrajudicial procedures, including the agreed interest accruing from the date of the claim, professional fees, tax expenditure, etc. must be borne and in all cases by the borrower.
It continues, stating that, .. “in an identical way, costs, expenses and damages incurred for breach of contract, including lawyer and Prosecutor fees and, if the financial institution, albeit voluntarily, has to use intervention will be met by the debtor. (Legal costs are established beforehand, therefore costs are asked to be paid without knowing the outcome of the case).
‘Base clause’ by agreeing a variable interest rate: “Notwithstanding the preceding paragraphs, it is expressly agreed by both parties (absolutely nothing has been agreed) that the MINIMUM annual nominal interest rate applicable in this contract will be (… 3-4-5%)”. This is normally accompanied by the so-called ceiling clause which says that interest can never exceed 16-17-18%.
