The concept of subrogation refers to the modification of the conditions of a contract to replace a person, whether physical or legal, by another in the exercise of a right or the fulfillment of a obligation.
What is surrogacy?
When talking about subrogation, we generally refer to assumptions of payment with subrogation in the obligation. Payment with subrogation occurs when a person makes the payment of an external debt, standing in the place of creditor in the obligation satisfied.
A synonym for surrogacy can be delegation or replacement of powers to others, in a type of succession.
In the workplace there is the option of contract subrogation, which is when one of the signatories of said agreement transfers compliance with it to a third party under the conditions that had been established at the time.
Very often, we also hear the term mortgage subrogation, which is a type of novación, that is, a change on any of its factors. It can be a subrogation of debtor or creditor.
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- Subrogation of debtor or between individuals: occurs when the owner of the mortgage, which is common when acquiring a home that is already mortgaged. The financial institution may or may not accept the new debtor, and for this it will carry out a risk study similar to the one carried out at the time of granting a loan. In this way, the existing debt is assumed without the need to make a new tax payment. Of course, you will have to pay a series of expenses that the surrogacy implies, such as those of management, registration, notary's office and a surrogacy commission.
- Creditor or inter-entity subrogation: it is mainly about changing the mortgage from one entity to another. This option arose with the aim of obtaining better conditions from the banks. In this case, the user can get a loan with improvements in the conditions, without having to cancel it and formalize a new one.
Quite often, when buying a new home, the developer's mortgage subrogation is usually given.
How to subrogate a mortgage?