Residential real estate purchase and unoccupied real estate

• Question ID: 2017/0013
• Date of publication: 09/08/2017
• Subject matter: Protection items in AnaCredit, Loans price and other conditions
• AnaCredit Manual: Part II
• Data attribute: Purpose, Type of protection

Question

Could you clarify which purpose should be reported in the case of financing provided for the purchase of real estate that is not occupied by the owner or the lessee, based on the definition of residential real estate provided in Article 4(1)(75) of Regulation (EU) 575/2013?

Answer

For the purposes of AnaCredit, reporting agents should classify residential and/or commercial real estate in accordance with the classification they apply for the capital calculation in accordance with Regulation (EU) 575/2013.

In particular, it is clarified that in accordance with Article 125(1)(a) of Regulation (EU) 575/2013, which states that, for “exposures […] secured by mortgages on residential property which is or shall be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, …”, the data attribute “purpose” is reported as “residential real estate purchase”, including for loans provided to finance unoccupied residential real estate.