The following terms and conditions (the “Terms and Conditions”) apply to every provision of professional services carried out by “MORTAGE DIRECT, S.L.U.” (“MD”) and are additional and complementary to any mortgage intermediation agreement (the “ Intermediation Agreement“) entered into between MD and the CLIENT (as defined in the Intermediation).
- Scope of application:
The parties involved in the legal relationship, which is derived from the provision of mortgage intermediation services, are MD and the CLIENT.
These services shall be understood to be rendered solely and exclusively to the CLIENT and may not be transferred by the CLIENT to third parties or be used by anyone other than the CLIENT.
- Prior Information:
The CLIENT acknowledges to having received with sufficient advance notice and free of charge the information referred to in article 35 of Law 5/2019, of March 15, regulating Real Estate Credit Contracts (hereinafter, the “LCCI“), as well as in its development regulations, contained in the information sheet of MD, which is attached to the Intermediation Agreement.
- Services offered by MD:
MD is an non-exclusive real estate credit intermediary, operating in the mortgage loan/credit market in Spain, the Netherlands and Portugal, being therefore subject to the supervision of the Bank of Spain and the respective regulators of those European countries. Its main activity consists of intermediation in the market of loans/credits with mortgage guarantee. In this sense, its activity includes, among others, the provision of the following services:
- Putting in contact, directly or indirectly, individuals with credit institutions.
- Presenting or offering mortgage loan/credit contracts to borrowers.
- Assisting borrowers by carrying out pre-contractual or other pre-contractual procedures with respect to mortgage loan/credit contracts.
- The management of the opening of banking accounts for the CLIENT in the Credit Institutions (as this term is defined below), if necessary, for the granting by the latter in favor of the CLIENT of the requested mortgage loan/credit.
- Obtaining the appraisal value of the property that the CLIENT wishes to acquire through the financing obtained by granting the mortgage loan/credit.
The mortgage intermediation service shall consist of assisting the CLIENT by carrying out the previous formalities or other pre-contractual procedure with respect to the mortgage loan/credit contracts offered by the financial and/or credit institutions with which MD intermediates (the “Credit Institutions“).
By signing the Intermediation Agreement, the CLIENT expressly accepts that, in the event that MD communicates the identity of the Credit Institutions with which it is carrying out its intermediation activities, the CLIENT may not approach those entities on their own (either directly or through any third party) with the objective of trying to obtain the aforementioned mortgage loan/credit in parallel.
Based on the information/documentation provided by the CLIENT, MD will present and advise the CLIENT with respect to those mortgage loans/credits that it considers most suitable for their needs.
By signing the Intermediation Agreement, the CLIENT expressly states that they are fully aware that the information they provide must be accurate, truthful, and complete, and must inform MD of any circumstance that implies a variation (no matter how slight) in the information/documentation provided.
By signing the Intermediation Agreement, the CLIENT declares to be fully aware that the granting of a mortgage loan/credit, as well as the acquisition of a property, all in a foreign country for the CLIENT, entails a series of risks (valuations of the currencies of the country of origin and of the receiving country) when the currency of the CLIENT’s country of origin (and, therefore, of the currency to which their income, savings, etc. are linked) is different from the currency used in Spain both for the granting of the mortgage loan/credit and for the acquisition of the property, for which reason MD expressly recommends the CLIENT to hire any third party that can advise them on currency matters, if necessary.
For the appropriate purposes, by signing the Intermediation Agreement, the CLIENT declares to be fully aware that MD will not offer any type of legal advice on tax matters, regarding both the granting of the mortgage loan/credit and the acquisition of the corresponding property, being highly recommended for the CLIENT the hiring of a specialist in legal advice on tax matters.
- MD Fees:
- Fees and payment methods:
Once the Intermediation Agreement has been signed, MD shall be entitled to receive as a fee, the amount of SIX HUNDRED NINETY-FIVE EUROS (€695) (the “Initial Intermediation Fees“) for the provision of the initial intermediation services, issuing the corresponding invoice that shall be paid by the CLIENT within a maximum period of seven (7) calendar days from the date of issuance of the invoice.
The above Initial Intermediation Fees will cover multiple applications with different Credit Institutions related to different properties and shall only be payable once by the CLIENT.
Upon the initial approval of the granting of the requested mortgage loan/credit, which has been issued in writing by the corresponding Credit Institution, MD shall receive an amount of ZERO SIX PERCENT (0,6%) of the amount of the mortgage loan/credit granted to the CLIENT by the corresponding Credit Institution (the “Initial Approval Fees“) as fees for the intermediation services rendered to obtain such initial approval, issuing for such purpose the corresponding invoice which shall be paid by the CLIENT within a maximum term of seven (7) calendar days as of the date of issuance of the invoice.
For the appropriate purposes, it is hereby stated that MD shall be entitled to receive the Initial Approval Fees even in the event that the mortgage loan/credit has not been granted for the purchase of a specific property, since it is the fact that the corresponding Credit Institution has issued the initial approval of the mortgage loan/credit requested by the CLIENT what produces the accrual of those fees, regardless of the property to be purchased with the financing obtained through the same.
In no event shall the Initial Approval Fees that MD is entitled to receive be less than ONE THOUSAND EUROS (€1,000).
The Initial Intermediation Fees and the Initial Approval Fees shall be jointly referred to as the “Fees”.
Notwithstanding the previous paragraphs, the Fees that MD may have received may be reimbursed to the CLIENT in the circumstances foreseen in Clause 6 below.
- Payments received by MD from third parties and costs derived from intermediation:
In the event that any of the Credit Institutions pays MD any amount resulting from the intermediation of the granting of the mortgage loan/credit, this circumstance will be stated in the “Ficha de Información Personalizada” (FIPER) and in “Ficha Europea de Información Normalizada” (FEIN), thus complying with the right of the CLIENT to receive information on the Fees that MD may receive from the Credit Institutions that grant the credit/mortgage loan contracts offered to the CLIENT.
The CLIENT is fully aware of the possible existence of taxes, expenses, and costs to be assumed during the process of contracting the mortgage loan/credit, for example, the costs of the appraisal valuation of the property, registry verifications, opening fees, etc., which will be duly detailed by the Credit Institutions that will grant the CLIENT the mortgage loan/credit.
Likewise, the Credit Institutions could associate to the contracting of the mentioned mortgage loan/credit, other linked products (for example, a damage insurance), situation that by signing the Intermediation Agreement the CLIENT expressly declares to be aware of and accepts, all this, in the terms referred to in article 17 of the LCCI.
4.3 Late payment of MD fees
In the event of late payment of any fees, MD reserves the right to charge penalty interest starting 7 calendar days from the initial payment demand. Said interest will be charged in accordance with the provisions of Arts. 5 to 7 of Law 3/2004 at the legal rate of interest as published for that period of time. Furthermore, any legal costs arising from the collection of such debt will be borne by the client.
- Intermediation contracts and mortgage advice:
Once the CLIENT has the first contact with MD, MD will place at their disposal both the Intermediation Agreement.
The signing of this agreement by the CLIENT is an indispensable requirement for MD to be able to provide the services referred to above. This agreement shall regulate the rights and obligations of the CLIENT and MD in relation to the mortgage.
The CLIENT may withdraw from the Intermediation Agreement at any time, without the need to give any cause and without giving rise to any liability and/or penalty for the CLIENT, by sending a communication to MD in accordance with the terms indicated in each agreement.
Notwithstanding the foregoing, as a general rule, in the event that MD has received or is entitled to receive Fees (whether Initial Intermediation Fees and/or Initial Approval Fees) under this Intermediation Agreement, CLIENTS’ withdrawal from such agreement shall not entitle him to a refund of such Fees (if have been already paid to MD) or release him of the payment of such Fees (if accrued and MD is due to receive them).
Once the CLIENT has signed the Intermediation Agreement and has paid the Initial Intermediation Fees, he shall be entitled to the reimbursement of them in the event that MD is unable to offer him an appropriate mortgage loan/credit contract that meets the economic and financial needs of the CLIENT in the term of [*] months since the signature of such agreement.
Notwithstanding the above, by signing the Intermediation Agreement, the CLIENT expressly accepts that if one of the Credit Institutions presented by MD to the CLIENT should issue to the latter an initial approval in their favor on a mortgage loan/credit that does not adjust to the economic and financial conditions indicated by the CLIENT to MD, and in spite of this the CLIENT decides to accept it, it will be considered, for the purpose of the accrual of the right to the collection of the Initial Intermediation Fees, that MD has offered him an appropriate mortgage loan/ credit contract.
Because of the provisions of the previous paragraph, if the CLIENT wishes to enter into a mortgage loan/credit contract with a Credit Institution presented by MD, even if such contract does not comply with the economic and financial characteristics of the CLIENT, MD shall also be entitled to receive both the Initial Intermediation Fees and the Initial Approval Fees.
In the event that the CLIENT had decided not to proceed with the acquisition of the property for which the granting of the mortgage loan/credit was initially requested, but had subsequently proceeded with the acquisition of a different property, using for this purpose a mortgage loan/credit granted by any of the Credit Institutions presented by MD, the latter shall be entitled to collect from the CLIENT both the Initial Intermediation Fees and the corresponding Initial Approval Fees, who shall be obliged to pay them if so required by MD.
- Bank of Spain. Guide of Access to the Mortgage Loan:
In order for the CLIENT to have, prior to the formalization of the mortgage loan/ credit which they wish to enter into, adequate information to make their decisions regarding the financing that best suits their personal and/or professional needs, based on their economic and/or financial situation, MD makes available to them the Mortgage Loan Access Guide prepared by the Bank of Spain, which can be accessed through the following link: https://www.bde.es/f/webbde/Secciones/Publicaciones/Folletos/Fic/Guia_hipotecaria_2013.pdf.
In addition, MD provides the CLIENT with the link to the website of the Bank of Spain so that they can review it in case it is of interest to them https://www.bde.es/bde/es/.
- Personal Data
MD undertakes to comply with all currently data protection applicable laws and with the European (EU 2016/679) General Data Protection Regulation and the Organic Law 3/2018 of Personal Data Protection and guarantee of digital rights.
Personal data included in this General Conditions and those which may be collected from the CLIENT during the relationship will be processed by MD for the control of this Agreement and the fulfilment of mortgage intermediation services, being necessary for the execution of this General Conditions and the correct provision of services agreed between the parties.
In the event of contracting mortgage intermediation from MD, the CLIENT’s data will be processed in accordance with the provisions of these Terms and Conditions and in the agreement for the provision of specific services.
If necessary for the execution of the specific agreement and service, MD may verify the information provided by the CLIENT (economic, financial, professional data, etc.) by consulting asset solvency files and public registers in order to comply with the obligations required to MD as an intermediary in terms of the anti-money laundering prevention.
The CLIENT is responsible for and guarantees the veracity and accuracy of the data provided to MD that are necessary for the provision of the contracted services. MD shall not be liable for conclusions or results generated from information provided by the CLIENT that is inaccurate, false or erroneous.
MD declares that it has adopted the appropriate security measures to guarantee the confidentiality, availability and integrity of the CLIENT’s personal data, which will not be communicated or subject to international transfer unless it is necessary for the execution of the relationship or compliance with the legal obligations required to MD. Notwithstanding the foregoing, the CLIENT’s data may be communicated to third party Credit Institutions collaborating with MD if necessary for the provision of the service to the CLIENT. All of the above, as appropriate and in accordance with what is described in the service provision contract signed between MD and the CLIENT.
As a result of the relationship, MD may also process the CLIENT’s data in order to send communications about other MD products and services similar to those contracted, based on MD’s legitimate interest in keeping the CLIENT informed during the relationship. At any time, the CLIENT may unsubscribe and oppose to the sending of commercial communications by exercising their rights as detailed in this Contract.
Personal data will be processed during the term of these General Conditions and, after the conclusion, will remain blocked for the limitation period of any legal or contractual actions that may be enforceable hereinafter.
The CLIENT may exercise, at any time, its rights of access, rectification, erasure, object, portability, and restriction of processing (or any others recognised by law) by means of written notification to MD, to the addresses established in these General Conditions and to the following email address: email@example.com
The CLIENT can also lodge a claim related to the protection of Personal Data before the Spanish Data Protection Authority.
The CLIENT is aware that MD has a procedure for the resolution of complaints and out-of-court claims regarding the Intermediation Services and/or Advisory Services provided by MD by virtue of the Intermediation and/or Advisory Agreement. The CLIENT may submit the complaint or claim that they consider appropriate by sending an e-mail to MD, or by registered mail to the address Calle Velázquez, 24, 2D, 28001 Madrid, in accordance with the terms and conditions of the mentioned procedure, which are available, at the full disposal of the CLIENT, on the website of MD (https://mortgagedirectsl.com/terms-and-conditions/ ).
Notifications, authorizations, consents, and other communications relating to these General Conditions, the Intermediation Agreement, must be made in writing, in Spanish or English, via e-mail or by ordinary mail with acknowledge of receipt, to the e-mail or postal addresses of MD and the CLIENT that appear in the Intermediation Agreement.
- Full Agreement:
For all those matters that are not expressly included in these General Conditions, both the CLIENT and MD shall refer to what is included in the Intermediation Agreement.
These General Conditions, together with the Intermediation Agreement, constitute the total agreement between MD and the CLIENT, in relation to the provision of the professional services referred to in such agreements.
Notwithstanding the foregoing, MD and the CLIENT are fully aware that these General Conditions complement the terms and conditions set forth in the Intermediation Agreement and, therefore, in the event of a discrepancy between the provisions of the former and the latter, the agreements shall always prevail.
If any clause or provision of the General Conditions of the Intermediation Agreement were to be declared, totally or partially, null or ineffective, such nullity or ineffectiveness shall only affect that particular provision or the part of the same that is null or ineffective and shall be deemed not to be in force. The rest provisions of the General Conditions, the Intermediation Agreement shall remain in full force in all other respects.
To such effects, the General Conditions, the Intermediation Agreement shall cease to be valid exclusively with respect to the null or ineffective provision, and no other part or provision shall be annulled, invalidated, prejudiced or affected by such nullity or ineffectiveness, unless it is essential to affect the General Conditions and the Intermediation Agreement as a whole.
- Applicable Law and Jurisdiction:
The present General Conditions and the Intermediation Agreement, will be governed and interpreted in accordance with the established in the LCCI and in its development regulations, and in defect or absence of these, in accordance with the common Spanish legislation.
For the solution of any discrepancy, litigation or conflict arising from the interpretation or application of these General Conditions and the Intermediation Agreement, or related to these, MD and the CLIENT decide to submit themselves expressly to the Courts and Tribunals of the city of Valencia, waiving any other jurisdiction to which they may be entitled to.
If any discrepancy should arise between the Spanish and the English version of this Terms and Conditions, the Spanish version shall prevail.
I/we (the “CLIENT”) confirm that I/we have read the Terms and Conditions and I/we authorise Mortgage Direct to process mortgage applications on my/our behalf.
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Signed on behalf of Mortgage Direct: ___________________________________
Date: ______ / _______ / ___________