The loan agreement is an agreement between two parties, in which one gives the other the temporary use of an asset, without asking anything in return. If you’re involved in a loan agreement, it’s important to understand when you need to register it and how to do it. In this article we will explain everything you need to know about the registration of a loan agreement, from the costs to the procedures to follow, to the actions to be taken after registration.
What is a loan agreement
The loan agreement, also known as a free service contract, is an agreement in which one party (called the lessor) temporarily makes an asset available to the other party (called the borrower), without asking for any form of payment. The asset can be a real estate, a car, a valuable object or any other type of movable or immovable property. The borrower has the obligation to return the asset at the end of the loan period and to use it diligently. The loan agreement may be concluded for private or professional purposes and must be drawn up in writing. Its duration may be freely determined by the parties, but it cannot exceed 10 years
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When is it necessary to register a loan agreement
The registration of a loan agreement becomes necessary when the asset covered by the contract is a property. In fact, article 2645 bis of the Civil Code establishes that the loan agreement relating to a property is effective against third parties only if registered with the Real Estate Registry Office. The purpose of the registration is to protect the borrower’s rights to the asset and to guarantee its legal validity. Furthermore, if the lessor wants to enforce the loan agreement against third parties (for example, in the case of the sale of the property), registration becomes essential. It is important to remember that the registration must take place within 20 days from the conclusion of the contract
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How to register a loan agreement
To register a loan agreement, it is necessary to contact the Real Estate Registry Office responsible for the place where the property covered by the contract is located. The lessor or the borrower can submit the request for registration, but generally it is the borrower who takes care of the file. The application for registration must be completed on a special form and must be accompanied by a certified copy of the loan agreement. It is also necessary to pay a registration fee proportional to the value of the property. The registration process may take a few days, but once completed, the loan agreement will be valid against third parties and will have legal force.
Costs and taxes for registering a loan agreement
The costs of registering a loan agreement depend on the value of the property covered by the contract. Generally, you pay a registration tax of 2% of the value of the property, plus a stamp duty of about 16 euros. However, there are some tax breaks for certain categories of people, such as young couples who buy their first home. In this case, the registration fee may be reduced to 2% of the total amount of the contract, up to a maximum of 200 euros. Before proceeding with the registration of the loan agreement, it is advisable to check if you are entitled to some tax breaks or if it is possible to take advantage of tax
discounts.
What to do after registering the loan agreement
After registering the loan agreement, it is important to keep the authentic copy of the contract and the registration certificate. If necessary, for example in the case of the sale of the property or of disputes between the parties, these documents will be useful to prove the validity of the contract and its registration. In addition, the borrower must comply with the terms of the contract, using the asset diligently and returning it at the end of the loan period. The lessor, on the other hand, must guarantee the availability of the asset for the entire period established by the contract. In the event of a violation of the terms of the contract by one of the parties, it is possible to take legal action to protect your rights
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In conclusion, the registration of a loan agreement is a fundamental step to ensure the validity of the contract and the protection of the rights of the parties involved. It is important to follow the correct procedures and check if you are entitled to tax breaks. Once the contract has been registered, it is necessary to keep the documents securely and comply with the terms of the contract
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