When a foreigner decides to buy a property in Torrevieja, one of the most common questions is what happens when the property still has an outstanding mortgage. Far from being an obstacle, this is a very common situation in Spain and completely manageable, provided it is done with the appropriate legal advice.

A property with a mortgage cannot be freely transferred without first settling that lien. Therefore, the first step is to request a certificate of outstanding debt from the bank, a document that indicates exactly how much remains to be paid at the time of the sale. This information is essential for calculating the final amounts the seller will receive and those the buyer will have to pay.

There are two common ways to proceed.

The first option is for the seller to pay off the mortgage before the sale. To do this, they use part of the purchase price to settle the remaining debt. Afterward, the bank issues a cancellation certificate, and the deed of sale is formalized free of any encumbrances. This procedure is the simplest for the buyer, as they acquire the property completely mortgage-free.

The second option is for the buyer to take over the existing mortgage, meaning they continue with the seller’s loan. This is only possible if the bank approves it and if the loan terms are favorable. Sometimes this can be advantageous, as the original mortgage may have a lower interest rate or better terms than current market rates.

However, regardless of the chosen option, it is essential to review the loan agreement, check that there are no abusive clauses and verify that the property does not have any other additional encumbrances (liens, debts to the community, etc.).

At A&G Lawyers, we help our international clients manage the entire process: we coordinate with the bank, review the documentation, facilitate negotiations between buyer and seller, and ensure that everything is correctly recorded at the notary’s office. Our goal is to make buying a home in Torrevieja a safe, transparent, and hassle-free experience.

📍If you are selling a home with a mortgage or want to buy a property with outstanding charges, don’t do it without the proper backing.

➡️ Schedule an appointment with A&G Lawyers and we will guide you step by step to ensure the transaction is quick, safe, and legally flawless.