Dación en Pago Procedure (handing back the keys to your lender)

Property

A dación en pago (or dation in payment) means handing the keys back to a lender, and in exchange a lender will discharge in full of the mortgage liability not holding a borrower liable in the future. They will renounce pursuing the debt in your home country or elsewhere against any other assets you may hold.

 

What this service includes:

 

• Negotiation with your lender on the terms.
• Arrange surveyor.
• Drafting of deed.
• Signing deed witnessed by a Notary Public.
• Surrendering the keys.
• Verifying your mortgage liability is fully discharged.

 

What this service does NOT include:

 

• Property appraisal.

 

Requirements:

 

• No-negative-equity rule: the property should not be in negative equity (in fact, I advise it should have at least over 20% equity).
• No bank repossession procedure underway: it is critical a lender has not started repossession proceedings against the property.

 

Legal fees: on application

 

*Our legal fees do not include extras, such as an updated property appraisal.

 

We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

Related articles and blog posts

 

• Dacion en Pago Procedure – 21st November 2008
• Dación en Pago: Finally a Borrowers’ Right – 8th March 2012
• Dacion en Pago or “Handing back the Keys” – 8th December 2013
• Dacion en pago explained (handing back the keys) – 8th July 2020

 

 

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