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Notary office in Saint-Jean-Cap-Ferrat

Alain-Xavier BRIATTE, Partner Notary


September 2022

Change in interest rate and the need of a new notarized deed

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During the period of renegotiation of the contractual conditions of an existing loan, the lender often wonders to what extent the notary who executed the initial notarised deed of financing will have to intervene again to accommodate the new contractual terms, including a change in interest rate (variable to fixed and vice versa, or variable to variable), and what would be the terms of their intervention.

In order to address this issue, our Client Memorandum will be organized as follows:

I - The unavoidable minimum requirement of the registration of the rate change at the SPF (land registry service) at a greatly reduced cost (Page 3)

II - Need for a new notarised deed limited to the rate differential and alternative solution of the “Cash Collateral” (Page 5)

1/ A new mortgage deed limited to the rate differential (Page 6)

2/ The alternative solution to the new deed: an increase in the “Cash Collateral”, without a new notarised deed (Page 8)

Alain-Xavier BRIATTE, notary

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