a

Facebook

Twitter

Copyright 2018 Costa Luz Lawyers Design By Los Creativos de Hawkins.
All Rights Reserved.

9:00 - 17:00

Our Opening Hours Mon. - Fri.

956 09 26 87

Call Us For Free Consultation

Facebook

Twitter

Menu
 

Our Blog

Explore our blog for insightful articles on many interesting and relevant topics
Costa Luz Lawyers > Our Blog (Page 3)

Spanish Timeshare industry being punished by the Supreme Court

The Timeshare industry is being heavily punished by the Spanish Supreme Court as, in most of the cases; contracts were drafted against formal requirements of the Law. The Supreme Court is condemning Timeshare companies to refund clients a proportional part of all payments made by them. Being the proportion based on the number of years that the timeshare has been used over a period of 50 years.  The Supreme Court is also condemning related financial institutions to refund amounts jointly and severally with the Timeshare companies. CostaLuz Lawyers have so far  helped clients in these timeshare developments:  Diamond Resorts, Club Primavera,...

Continue reading

Possibility of judicial declaration of nullity of foreclosure proceedings

Is it possible to obtain a judicial declaration of nullity of foreclosure proceedings when the request for payment to the defendant (mortgagor) has not been made with all the guarantees required by law, according to the interpretation made by the Spanish Constitutional Court? When a foreclosure proceeding is initiated in Spain, the mortgage debtor has very limited possibilities for opposition.  Hence the importance for the debtor to analyze in detail if the mortgage procedure complies with all procedural requirements. If the nullity of the mortgage process is approved by the Court, the consequences are that everything that has been done is not...

Continue reading

Spanish Government announces law changes to force banks to pay mortgage tax

The Spanish Government has just passed a Decree by which mortgage lenders, rather than borrowers, will from November 12th, pay the Stamp Duty tax charged for the opening of the mortgage. The decree also ensures banks cannot deduct this cost on their tax returns. With this legislative decision, the executive government has over-ruled the Supreme Court’s recent decision which made the consumer pay the fee. The government justifies the fast decision due to the fact that the Supreme Court has created a big confusion: In mid-October the Supreme Court changed over 20 years of Case Law by ruling that banks, not borrowers,...

Continue reading

Are agreements between the Bank and Consumer on Floor Clauses valid?

Very recently, on 15 June 2018, the Supreme Court issued a new ruling on a case relating to mortgage deeds novation modifying the floor clause through an agreement between the client and the financial institution. This judgment declares the nullity of the Floor Clause and the novation carried out subsequently through the signing of the agreement proposed by the bank to the client. What does the case decide? The case raises, as a matter of substance, the application of transparency control to a mortgage loan that included the so-called floor clause and that was subsequently the object of modifying novation. As stated in...

Continue reading

Timeshare Sentences by the Supreme Court in Spain

The last two Court Sentences of the Spanish Supreme Court on Timeshares are a compendium of the doctrine that the High Court has produced so far: 1. Timeshare Law applies to holiday club memberships as, the object that was transmitted in the contract, is  a right to use one or several properties during a determined or determinable period of time. 2. If the contract did not respect the form established by law, it is null and void. 3. The indefinite duration of these contracts makes it null and void and they can only be constituted for a maximum period of 50 years. 4. Any individual...

Continue reading

European Union Commission on the IRPH clause in Mortgage Loans

The European Commission, in its observations to the Court of Justice of the European Union (CJEU), has positioned itself in favour of people affected by the mortgage index, IRPH, which directly opposes the judgment of the Supreme Court on the IRPH index in Spanish mortgages. This index, known as the ‘Index of Reference of Mortgage Loans’, (IRPH), affected 1.3 million mortgages. In those mortgages the interest rate was linked to the IRPH and not to the Euribor. IRPH is calculated by taking into account the loan interest rates offered by all financial entities and has always been much higher than the...

Continue reading

Banks must pay Stamp Duty Tax on Mortgage Loans

The Spanish Supreme Court has recently ruled that the person who must pay Stamp Duty tax due on the registering of the public deeds of mortgage loans is the lending entity and not the borrower. In a Court Sentence dated 16 October 2018, the Supreme Court modifies its previous Case Law and interpreting the consolidated text of the law on property transfer tax and stamp duty tax, concludes that the borrower is not the taxpayer of the latter tax in the deeds of mortgage-backed loans. But the entity that provides the corresponding loan. It considers that the transaction subject to registration is...

Continue reading

Touristic housing to be controlled by Communities of owners

The communities of owners will be able to prohibit by a majority of three fifths the establishment of tourist apartments in their building, against the rule of unanimity which has been required until now. The Secretary of State for Tourism, Isabel Oliver, announced on Monday the modification of two key laws on housing to regulate this phenomenon. Oliver highlighted the intention to "separate short-term rentals and rentals for tourist use", and to giving communities of owners the power to decide on their properties and "what can be allowed". For this purpose, the urban lease law and the horizontal property law will be modified....

Continue reading