property Tag

Costa Luz Lawyers > Posts tagged "property"

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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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,...

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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...

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Refusal of property keys back by the Bank

What if the Bank refuses to accept my property keys back? Not the end of the story: Monitor and oppose if: (a) Your mortgage deeds have abusive clauses which can stop or void the repossession: anticipated maturity clause, lack of communication of the sale of the mortgage debt to a vulture fund, floor clause, IRPH… (b) The enforcement procedure is being according to Law (c) Value given to the property for auction is correct, mainly if Banks are respecting the minimums established by Law as a barrier for them not to bargain with mortgage debtor rights. In most cases, your pending debt is below the value...

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Is your property being repossessed?

Read the below legal tips  by CostaLuz Lawyers: • Any notification to the debtor must have been practised by the courts after investigation of different possibilities. It is not enough if the Court just tries the foreign address in Spain which was mentioned on the deeds. • Action taken cannot be based on an illegal or abusive clause (floor clause, early expiry clause, debtors’ interests’ clause…) • Law has imposed Bank a minimum value (50% of auction value of the property) for the event of repossession by them after an auction with no bidders. If your debt is below that minimum     ...

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The European Commission says the Supreme Court Sentence on IRPH violates Community legislation

The European Commission has recently issued a report on IRPH clauses in Spain, which leaves Spain’s Supreme Court in a compromising situation. The effects could be of similar proportions to the cancellation of the ground clauses of the mortgages, although we will still have to wait for the response of the Court of Justice of the European Union (CJEU) to a question submitted by a court in Barcelona. In November 2017, Spain’s Supreme Court ruled that mortgage contracts linked to the IRPH are not abusive because this index, being official, already offers guarantees of transparency. But now the legal section of...

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Help in foreclosure procedures

The Advocate General of the Court of Justice of the European Union (CJEU) has recently issued his expert conclusion on five questions referred by different Spanish Courts, the Supreme Court among others, in regards to early maturity clause contained in mortgage contracts. What is an early maturity clause? It is a clause by which Bank can claim the whole debt just after a minor default (one installment) by the mortgage debtor What did Spanish Courts ask the European Court? In an scenario where a foreclosure procedure was started after many unpaid mortgage installments BUT based on the existence of a clause on the mortgage...

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What a foreigner must know to buy a property in Spain

To buy a property is not an easy task, but if you know the steps to take, and get the right advice from the suitable person, you could obtain a big advance in this section and definetly a safe option to not to be wrong at the moment of buying a property The purchase of property abroad continues being a guideline at historical highs of property purchase by trimester of years before and has rised up to a 15% by international investors Each person who has decided to invest in property in this territory must know all alternatives and prices to avoid...

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