Recently, the Financial Ombudsman has published a very important communiqué in which he warns to pay special attention to “loans” concluded before a notary public.
It often happens that people who need to fix their budget or pay off overdue bills quickly agree to conclude a loan agreement in the presence of a notary, which is the first step to losing their apartment!
Many people who lost their homes – due to not paying back the debt – report to the Financial Ombudsman, counting on intervention. In this situation, he remains to inform the prosecutor’s office about such crimes. “Unfortunately, in most cases these people have been the victims of crime, which is why we inform the prosecutor’s office about such cases.
We warn potential clients against signing contracts where the condition for a loan from a natural person or a company is to establish security related to the property, ” says Agnieszka Wachnicka, director of the Banking and Capital Market Client Department at the Office of the Financial Ombudsman.
loan against the apartment can only be granted by banks and credit unions. If a broker or any company tries to persuade us to take a loan based on real estate rights, we should be extremely careful and vigilant. First of all, it is worth studying such a contract before signing. If you do not know which of the provisions may be unfavorable for you – you can always use the help of specialists who will analyze your contract – before you sign it – and indicate which of the provisions are unlawful.
“From our practice, we see that this type of” loans “are not secured by a mortgage entry, but by the transfer of ownership of the apartment. Sometimes it is a contract in which, in the absence of repayment, the lender takes over the flat.
In other cases, it is simply a sale and purchase agreement with the right of repurchase by the borrower after a certain period of time. From the legal side, therefore, it is not a loan or credit agreement based on the principles set out in the Consumer Credit Act or the Mortgage Credit Act. And both legal acts contain many provisions protecting the interests of the client, ” explains Agnieszka Wachnicka.
On the part of notaries who do not pay due attention to the content of the contract. Particularly records regarding the price – inadequate to this market – of the property being sold, as well as the high amount for which it will be possible to buy it back by the current owner.
The Financial Ombudsman warns that using a classic mortgage or mortgage loan you do not need to use the services of a notary public. And using other types of security should increase our caution.
Do you want to take out a loan, payday loan or other financial product? Consider using audit and contract negotiations. We will help you avoid problems related to not reading or understanding the provisions contained in the contract!