1. DACIÓN EN PAGO
Shirin Fardi and Encarna Mesa
Inglés Jurídico, January 2012

2. INDEX
1. The concept : Spanish/English
legal term
2. Legal & plain English definition
3. Legal Procedure
4. Process
5. Alternatives
6. Dación en pago & foreigners
7. Conclusions

3. SPANISH/ENGLISH TERM
dation en
Dación en assignment datio pro dation in paiement
pago in payment soluto payment (French
term)

4. Legal & plain English definition
• LEGAL ENGLISH: formal legal
procedure in which a borrower
might cancel his creditors’ debt
handing in exchange any of his
assets.

5. Legal & plain English definition (I)
• PLAIN ENGLISH: handing back
your home keys to the bank to
cancel your debts.

6. LEGAL PROCEDURE
This legal procedure is
based on Art 1175 of the
Spanish Civil Code, which
establishes that a borrower
can cancel his creditors’
debt handing in exchange
any of his assets.

7. LEGAL PROCEDURE I
According to Art. 1911 of the Spanish Civil Code,
(Signing a Spanish Mortgage)
“Del cumplimiento de las obligaciones responde el
deudor con todos sus bienes, presentes y futuros.”

8. LEGAL PROCEDURE II
You will be held personally liable with all your
assets, both now and in the future, for the
difference between what you owe the bank
and what the property is worth after the full
repossession procedure is over.

9. PROCESS

10. ALTERNATIVES
•Mortgage
Subrogation
•Mortgage
Novation

11. DACIÓN EN PAGO & FOREINGERS

12. DACIÓN EN PAGO & FOREIGNERS I
• Popular solution after the Financial Recession
• Stop the delay in payments
• Foreigners back to their countries without
debts
• Better & cheaper solution than a legal process
in a foreign country
• Some countries protect their citizens Eg.:
Ecuador

13. CONCLUSIONS

14. MORE INFORMATION
• The Dación en Pago Explained
• La banca impulsa la dación en pago con
extranjeros para frenar la mora
• Código Civil Español