Question:
Dear lawyer, I have heard that it is possible to claim back expenses paid for taking out a spanish mortgage, is this true ?, What can be claimed? How much would it cost?
Dear reader, thank you for your enquiry.
Yes, it is possible to claim back expenses paid by you when you signed your mortgage loan, mainly the following expenses: public notary fees, land registry fees, Stamp Duty Tax, etc., which translate to several thousand euros in most cases.
This is according to the Spanish Supreme Court (TS), in its ruling number
705/2015 of 23 December. In their lengthy ruling, the TS review numerous abusive clauses contained in mortgage loan deeds, including the clauses relating to payment of the expenses of mortgage documents, which many banks establish are to be paid exclusively by the borrower. Thus, the consumer receiving the loan is asked to pay all taxes, commissions, and expenses, arising from the preparation, formalization, processing, etc. of the loan.
This type of clause is very common in the mortgage deeds prepared by Spanish banks, and is contrary to the Spanish General Consumers and Users Law, because, among other reasons, they impose on the consumer the payment of expenses that by law correspond to the lender, in this case to the banks.
For example, in the case of the notary expenses and land registry fees , it is the bank who is interested in documenting the loan as a public deed and its registration at the Land Registry, not the consumer, and in spite of this, the consumer is obliged to pay for all these expenses.
In relation to taxes on the mortgages, mainly that of Stamp Duty, usually the main cost of the mortgage loan, the Spanish Supreme Court says that banks should also pay, since the banks the ones benefiting for the set up of this right and guarantee.
Therefore, in response to your question, in the light of that indicated by the Spanish Supreme Court, you can indeed claim for return of the expenses that you paid for your mortgage loan, and the notary expenses, etc.
In general, anyone who has a mortgage in Spain as a consumer, with a bank or professional lender, almost certainly will have had to pay for all the costs of the operation, and they can claim for their reimbursement.
Send us a copy of your mortgage deed, and proof of the expenses paid by you, and we will help you, to make it easier to claim, we will only charge you if you get paid from the bank.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Carlos Baos (Lawyer)
White & Baos
Tel:+34 966 426 185
E-mail: info@white-baos.com
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