hipoteca

A hipoteca is a legal agreement that allows a borrower to obtain a loan from a lender to purchase real property, with the property itself serving as collateral. The contract obligates the borrower to repay the principal amount together with interest over an agreed period, and allows the lender to claim the property if payments are not met.

In many civil law countries, a hipoteca is formalized through a public deed that must be registered with a land registry office. The registration safeguards the lender’s rights by making the mortgage official and enforceable against third parties. The document typically specifies the loan amount, interest rate, repayment schedule, original and conditional terms, and any conditions for early repayment or assignment.

Hipotecas can be classified by their interest rate—fixed, variable, or mixed—by their term—short‑term or long‑term—and by their purpose. A reusable hipoteca permits the borrower to withdraw additional funds within the credit line, while a maturity foreclosed hipoteca may allow the borrower to surrender the property without further payments upon loan maturity. Some hipotecas include an option for the lender to transfer the obligation to a different entity, known as "hipoteca sobre transferencia de titularidad".

The borrower’s obligations extend beyond repayment; they must preserve the property, pay taxes and insurance, and notify the lender in advance of default. Failure to meet these duties can trigger legal remedies, including judicial foreclosure. In a foreclosure, the lender can sell the property to recover the debt, potentially after a public auction, subject to the legal safeguards that protect the rights of the debtor and the marketplace.

Because of its significance, hipotecas participate heavily in national financial systems, influencing housing markets, consumer credit, and economic stability. Their structure and regulation vary between jurisdictions, shaping how lenders manage risk and how borrowers access real estate financing.