Asset Recovery and Management

We provide support to our clients with everything related with their asset management.

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ASSET RECOVERY AND MANAGEMENT

The recovery and management of assets, particularly real properties, are directly related to the ownership and possession of loans and assets by large holders of these, among which financial institutions and their affiliated real estate companies make up a great percentage.

These processes can be classified into two main groups: those related to the stage of managing payment defaults or difficulties and those related to the possession of properties as a result of the adjudication or transfer in favour of the creditor.

Collection and recovery processes

Arnal provides collection services which involves supervising and restructuring the payment difficulties of those liable for them. One of our main activities is related to amicable debt collection in order to avoid lengthy and drawn-out—and often relatively of little use—court proceedings both in debt recovery and in guarantee enforcement.

Compliance with the currently extensive regulations on proceedings prior to judicial and enforcement proceeding, particularly when the debtors’ first home is involved.  Arnal supervises, organises, and digitalises all documents and information generated by the collection process, which provides our clients with patent evidentiary control of the process and the certainty of acting in accordance with the compliance parameters required by the implementing legislation.

In the debt recovery process, guarantee enforcement is crucial, and in this type of proceedings, taking possession is probably the most problematic area. We, at Arnal, intervene during this stage by means of taking possession amicably in order to avoid judicial intervention which always involves temporary delays and possible damage to the physical condition of the properties.

In addition, during the process of taking possession, compliance requirements are very high, so we advise our clients and help them in fulfilling them by providing supervision and control throughout all the stages of the process.  During these amicable proceedings, our document management professionals inspect the condition of the property and handle all subsequent negotiations and the signing of the documents for the surrender of possession.

The debt recovery process often concludes with the dation in payment of the property which is the subject of the guarantee. We, at Arnal, provide our services in this process during the preparatory stage, with a study of the registration status, ownership, documents, and the appraisal report; during the execution of the dation itself, by means of the powers of attorney granted; and finally, in the write-down and asset management stage once it is owned by the credit institution. In the debt recovery process, the most common type of proceedings is that of the adjudication of guarantees through legal proceedings which generally conclude upon obtaining the property’s title deed in of a third party or very often in aim of the financial institution itself or a real estate company belonging to its group to whom the auction of the adjudication has been awarded. The resulting title deed is an Adjudication Order issued by the court and which must be duly processed.

We take care of monitoring and processing these legal documents through supervision of registration priority, chain of title, voluntary payment of tax, and filing of the relevant taxes, and the registration of these deeds in the Land Registry, carefully controlling the entire process and providing clients with all the resulting information. As a corollary to the legal proceedings, the courts issue a cancellation document for the lien which gave rise to the guarantee enforcement, as well as any others, the so-called “clearing” of liens in the registry. We also handle the processing of this type of documents in the same way and with the same process guarantees previously described for the Adjudication Orders.

“One of the flagship services provided by Arnal is collection which involves supervising and restructuring the payment difficulties of those liable for them”.

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Asset Management

“Arnal handles legal and administrative management of the assets that have come under the ownership of the financial institution or any of its real estate companies”.

Asset Management

Once the assets are under the ownership of the financial institution or any of its real estate companies, Arnal takes care of the legal and administrative management of the property (the so-called asset “write-down”). In this way, we analyze the status of payment of the taxes and fees that affect property ownership, monitoring those items that must be paid by our clients and those that, upon applying the relevant tax regulations, should not be shouldered, as well as the surcharges by means of, if applicable, the filing of mandatory proceedings for administrative debt referral.

We, at Arnal, also take care of the status of payment of the dues owed to the Owners’ Association, by carrying out a thorough examination of their agreements to determine which amounts our clients are liable for, both as their personal obligation as the owner and as their real obligation based on the encumbrances imposed upon the property. In the same context, we provide our services in urban conservation entities and compensation boards.  In the asset write-down process, it is often indispensable to cancel liens or encumbrances—generally old—which are imposed upon the properties, through the filing of court proceedings for the release from liens and encumbrances in case it were necessary.

Within the very wide range of types of situations that are subject to regional regulations, the ownership of subsidized properties is worth mentioning.  Our team of professionals ensure compliance with all the regulatory requirements that affect the ownership of a property with these characteristics, receiving and monitoring notifications, as well as making them, keeping track of the deadlines and values as stipulated by the regulations.

Transfer of Assets

One of the main objectives of financial institutions and their real estate holding companies is to secure the transfer of assets. We handle myriad aspects of this process. If, on the one hand, the asset has been properly managed since it came under the institution’s ownership, the transfer is much quicker, and on the other, suitable analysis and control of all the documents required for the sale accelerates the transaction even further. In this way, our professionals ensure that all the documents required are available, so that our clients—as the seller—can execute the notarized deed of sale (Energy Performance Certificate, where appropriate, the certificate of occupancy, real estate tax debt certificate, and the certificate from the Owners’ Association, administrative documents in case it involves subsidized housing, etc.).  We then prepare and schedule the signing, sending the designated notary public all the documents required and also examining all the documents of the buyer.

All of this is to make sure that during the signing, everything goes smoothly.  We, at Arnal, are on hand to execute the sale transaction on behalf of our clients by means of the power of attorney granted in our favour, collect the agreed upon price, and inform our clients of the outcome of the transaction. Once the sale has been completed, we also supervise and manage the taxes imposed upon the sale transaction (generally speaking, the Tax on the increase in urban land value, and payment of the real estate tax for the current year), notify the Owners’ Association of the transfer, and make the necessary changes in the Real Estate Cadastre Office, aside from handling any other proceedings that must be carried out in order to safeguard the best interests of our clients.

“Arnal is in charge of managing and carefully inspecting all the documents required to secure a smooth transfer of assets”.

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