Author: costaluzlawyers

Costa Luz Lawyers > Articles posted by costaluzlawyers

September 2019: A new ruling by Spain’s Supreme Court on foreclosure

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What has the Supreme Court said about foreclosure processes in its Judgment of September 11, 2011? In its judgment, STS463 / 2019 of September 11, the High Court establishes the criteria to be followed in these cases, once the question raised by the Court of Justice of the European Union (CJEU) has been resolved. The Supreme Court rejects the automatic filing of the procedure and makes it possible to replace the abusive clause with the legal provision that regulates the anticipated maturity, or, in other words, the minimum terms that the creditor must respect to execute the mortgage. What are the minimum...

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The Gates Open to Claims of Abusive Interest Index IRPH in Spain

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The conclusions of the General  Attorney of the European Court of Justice were announced on the morning of Tuesday, September 10th 2019, and represent a blow to both the Spanish banks and to the Supreme Court's ruling of December 14th, 2017, that stated that mere reference to the index did not imply a lack of transparency. Their conclusions, although not binding, mark the path to be followed by the EUCJ in its sentence that is expected by the end of this year 2019. And could mean that Spanish banks will end up paying out billions of Euros in compensation to up...

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Recent LEY 57/1968 Off-Plan Property Supreme Court Sentences won by CostaLuz Lawyers

I. The first was a Trampolin Case against Sabadell in development Trampolin Royal Dream by Solera El Trampolin SL on May 24th 2019, a Supreme Court Sentence dated 21st of May which states liability of Banco Sabadell as depositer bank (receiver of off plan amounts) as it did not ensure those amounts were correctly insured/guaranteed. This Supreme Court Sentence also states that there is no need for the payments to be made in a "special account" and affirms according to important Sentence dated  23 November, 2017: "The fundamental reason for this Supreme Court Case law is that credit institutions receivers of amounts coming from...

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Clausula Suelo – Floor Clauses in Spanish Mortgages

Before the Judgment of the Court of Justice of the European Union of December 21, 2016, Banks offered agreements to their clients with a floor clause by which the financial entities agreed to eliminate this clause from the mortgage without returning the amounts already overcharged and forcing the mortgage holder to sign that they could not take further legal action to, mainly, request that amount they had already overpaid for the floor clause.   Until April 2018, the Spanish Supreme Court declared that these modifications or novations were not effective, allowing the option for the consumer to take action to declare the...

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A Judge in Ceuta asks the CJEU for a ruling on mortgage related expenses

A Judge in Ceuta has decided to submit a preliminary ruling before the Court of Justice of the European Union (CJEU) so that it may rule on whether the latest judgments of the Spanish Supreme Court, by which the expenses of formalizing the mortgages between the bank and the client were distributed, are contrary to the European Union Law and its jurisprudence, in terms of the protection of consumers on abusive clauses. Doubts arise to the judge on how to deal with the issue, because although it was already warned that these types of clauses are null, how is it possible...

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A summary of the new Royal Decree of 6 March 2019 on housing rentals:

Regarding contracts:   The period of mandatory extension of rental contracts change from three (3) to five (5) years, and the tacit extension is changed from one (1) to three (3) years for natural persons in the case that the landlord or the tenant does not express his will not to renew it. In the event that the landlord is a legal entity, it will be seven (7) years of mandatory contract and three (3) years for tacit extensions. The increase in annual rent will be linked to the CPI for the duration of the contract (5 years). It is limited...

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New CJEU Sentence to favour mortgage holders in Spain

The recent Judgment of the CJEU, dated March 26 2019 on the early expiration clause in Spanish mortgages, has confirmed its null and void character as was already declared by the Spanish Supreme Court.     The important question now is whether the contract can exist without the early expiration clause, especially the one that allows the lender to terminate the contract after a one month default.   As the clause is not essential in the contract, THIS CAN EXIST WITHOUT IT as in case of default, the lender may demand compliance or resolution through other means established by Law.   But, one thing is the existence...

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