Legal tip 104. Consumer´s rights to binding offer by Financial institutions
22 June 2009 @ 11:55
According to Article 16.1 of Law 2/2009 dated March 31st, once the lending institution has completed an evaluation of the purchaser´s creditworthiness and an evaluation of the property, the lending institution is required to provide a binding offer of loan or credit, or when appropriate, to notify the purchaser of its refusal to lend.
The offer must be in writing and signed by a representative of the lending institution. The offer will be valid for at least ten (10) business days from the date of delivery.
The binding offer will contain the clauses of Annex 2 of the Order dated May 5th, 1994, regarding transparency of financial conditions for mortgage loans. Those terms are:
- The conditions governing loan amount and delivery means, deposits in special accounts, amortization, ordinary interests, types of variable interest rates, and limits to interest rate variation, fluctuation and rounding off, etc.
- The right of the consumer, should he accept the offer, to review a draft of the Notary deed within 3 days time at the office of the authorizing Notary. This information shall be prominently expressed in the binding offer.
Roman Ruins and beach. Bolonia ( Tarifa) Cadiz. By Chodaboy at Flickr.com
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