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Explore our blog for insightful articles on many interesting and relevant topics
Costa Luz Lawyers > Our Blog (Page 2)

Oppose the bank if you are sued for non-payment of your mortgage

Why is it easier now than ever? Different circumstances related to abusive clauses in Spanish Mortgage contracts and the revision of these by European Law, has created a never seen before scenario of protection for the mortgage holder. Some of these circumstances are: - Mortgages with early maturity clauses: The judges in virtually all of Spain have stopped the mortgage enforcement procedures pending the decision of the European Court on the possible nullity of the clause of early maturity. 2.-Sale of mortgage debt to investment funds: The Bank or the investment fund, depending on how the transfer was made and if this was...

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Free yourself from your burden as a guarantor in Spain

I volunteered as a guarantor of my son's mortgage loan (I am an avalista) and want to see if I can get rid of that burden. Can I stop being a guarantor? Yes, there are two arguments based on Consumer Law for you to argue against the bank for the nullity of the guarantee clause: One is the lack of transparency because with the endorsement clause, the waiving of the benefits of division and excussion are usually imposed with no explanation of the legal and economic significance of such benefits or no indication of joint and several liability. Another is the argument of the...

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Are Bankia and Banco Sabadell about to sell your mortgage?

If they are then there is evidence to suggest that you should oppose it. As a matter of fact many mortgage enforcement proceedings are paralysed in Spain at the moment until the European Court solves a matter brought to it by Spanish Supreme Court. Our experience tells us that, under this scenario, Banks are willing to settle in those cases when you give your property back to them in payment of the remaining mortgage debt. Do your calculations as it might be worth a try. Contact us for more information.  ...

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New Decree regulating tourist rentals in Spain overturned by Congress

The Royal Decree-law 21/2018, of 14 December 2018, of urgent measures in the matter of housing and rent was revoked yesterday, 22 January 2019, by the Congress of Deputies. 243 deputies out of 350 voted against it. So, questions again: What  guarantee is required in a rental agreement? There is no limit to the guarantees that the owner can request from the tenant.  In the decree that the Government has overturned, this guarantee was limited to a maximum of two months. What extension is mandatory for home rental contracts? It depends when the contract was signed.  If the contract was signed during the 35 days...

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Possible nullity of multi-currency clause in a mortgage loan

The recent Supreme Court Sentence dated 26 November 2018, deals with the validity of the novation of a mortgage loan in which the parties modified the agreed currency, replacing the euro with the Swiss franc and converting the outstanding capital to be amortized from euros to Swiss francs. The analysis of the Supreme Court, inspired by important cases resolved by the CJEU such as the Andriciuc case or the Kásler and Káslerné Rábai cases and by the Supreme Court's previous decisions, centers its analysis on the contractual good faith required of financial entities. Bank´s Good Faith or “bonus argentarius” doctrine by Spain´s...

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Affected by a flight delay in Spain?

Please find below an article relating to flight delays in Spain: - Rights of passengers due to flight delays If flying within the EU, since 2004, you enjoy special protection thanks to Regulation (EC) No. 261/2004 of the European Parliament and Council, called EC 261. Covered delay: only those delays greater than 3 hours from the scheduled arrival time.  It does not cover the so-called "extraordinary circumstances", but it does cover the "technical difficulties" and the "operative circumstances". Obligation to inform: the first basic right is to be informed about the content of CE 261. Each airline has to show information about the...

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Collaborative platforms & tourist websites under tax control in Spain

On 24th May 2018, model 179 on "Quarterly informative declaration of the assignment of use of housing for tourist purposes"  was approved. It is another controversial information obligation which is now being reviewed by the Supreme Court. Despite the information obligation being quarterly, the Treasury agreed, exceptionally, that  incomes obtained in 2018 could be declared between the 1st and the 31st of January, 2019. Thereafter, the declaration will be made every quarter. So, this month will be crucial for  collaborative platforms which offer an intermediary service between owners and tourist tenants in Spain.  The Treasury is being very pro-active on this. The obligation is on...

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New rules in relation to tourist rentals in Spain come into force today

The new rules for tourist rentals imply a control power over tourist rentals by the Community of Owners The use of properties as a "tourist" lease can be prohibited by agreement of 3/5 parts of the totality of owners and shares in the community. The same majority will be required for the creation of additional fees or an increase in the share of the common expenses of particular units where said tourist rentals are carried out. These modifications cannot imply an increase of more than 20%. These agreements will not have retroactive effects and once adopted by the above mentioned quorum, must be...

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Have you done your homework before Brexit?

As a Spanish resident As uncertain as the situation is at present, it is wise to check and review some aspects of your life in Spain before Brexit is finally implemented (if that actually happens).  We would recommend checking your Spanish documents to see if they are all up to date. Padron registration Tax registration Social Security registration Car registration Health Services registration NIE number With regards to your Will, you can still enjoy the benefit that Brussels IV offered in terms of deciding that UK Law should govern your inheritance instead of your country of residence.  Once Brexit happens on 29 March...

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Penalty interest for delay in mortgage or loan payments

Do not pay delay/penalty interest more than 2% above the agreed interest rate of the loan or mortgage If the penalty interest for payment delay of your loan (personal or mortgage) is more than 2% above the agreed interest rate of your loan or mortgage, the judge must maintain the rest of the clauses of the contract and cancel the clause relating to delay/penalty interest.  Nothing can be charged to the consumer if the rate is more than 2% above the agreed loan rate. Why 2 percentage points? The Supreme Court in Spain has considered 2% as the maximum which will not imply...

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