New Supreme Court ruling on mortgage paid expenses

Banks will have to pay back 100% of the property registration expenses and 50% of the notary, Administration and valuation

On 26th October, the Supreme Court issued a new judgment related to the distribution of the costs of formalization of mortgages and that tilts the balance in favor of the consumer, since it allows him to save the management.

In this way, all consumers who signed mortgage loans before the entry into force of the law on real estate credit agreements in June 2019 can recover 100% of the expenses paid without having to go through the declarative court. Now, consumers will be able to go directly to the execution route, which is faster, as long as it is one of the following entities: Kutxabank, Banco de Caja España de Inversiones Salamanca and Soria (now Unicaja Banco), ING Bank and Deutsche Bank.

In case that the real estate deed meets the requirements, the judges have annulled the mortgage cost allocation clauses. In this way, banks will have to pay back 100% of the costs of registering the property and 50% of notary, management and valuation in the constitution of mortgage. In addition, institutions must pay legal interest from the date of payment of each expense. 

If the domicile is in Barcelona, the claim of the expenses prescribes to the 5 years, according to the Catalan jurisprudence. If you are in Valencia, Madrid or  País Vasco, however, there is no prescription.



Send us your mortgage and we’ll tell you whether it meets the requirements.

Mercedes Rivas Martínez

Col. ICAB núm. 43.121

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