Supreme Court Tag

Costa Luz Lawyers > Posts tagged "Supreme Court"

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

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...

Continue reading

List of all abusive clauses that a mortgage may contain

Clause of limitation to the minimum interest rate (floor clause): It is usually located in the stipulation 3 bis with the denomination. "Límite a la variacióndeltipo de interés variable” It usually coexists with another upward limit (or ceiling). The abusiveness of the clause due to imbalance arises when there is a disproportion between the floor and the ceiling so that it is the Bank that is covered against the mortgagor. 87% of mortgage users were not informed by their bank of the inclusion of said clause Multi-currency clause: The Supreme Court, in its Judgment of November 15, 2017,...

Continue reading