For the first time a court in Seville has forced a bank to repay the costs of formalizing a mortgage. That is including the Tax of Documented Legal Acts a tax that represents more than 70% of the expenses to be paid by the mortgaged. The ruling considers these expenses amounting to almost 4,000 abusive.
According to a statement from the law firm until now the court had upheld the nullity of property registration expenses. Almost in a majority way, that of notary expenses, thanks to Supreme Court ruling. However, this ruling is a pioneer since it opens the way to the judicial claim of the tax. That being regulated by a tax regulation, is considered as acquiring the applicant of the loan, thus leaving it to the discretion of each court. However, with this ruling it is possible to get the return of this tax to the mortgaged.
According to the resolution, the fifth clause of the deed, which imposes on the borrower the obligation to pay the costs of notary registration tax of, documented legal acts. Pre-trial or procedural expenses must be declared null. Void for abusive, the defendant to payment to the plaintiff of said expenses plus legal interest from the date of payment.
This will make the mortgage banks more expensive to assume the expenses of formalization. Each financial institution is finalizing its strategy to transfer to the client the cost that will assume the sector to assume part of the expenses of formalization of the mortgages. The main alternatives they contemplate are raising interest rates, recovering opening fees or demanding a fixed interest rate during the first year of life of the loan even though a variable has been chosen. Now it is not clear which way will follow each bank, although everything indicates that the unknowns will be cleared in the next weeks.
How to claim the costs of formalizing the mortgage that you unduly charged the bank In 2015, the Supreme Court declared null and void for abusive a clause that every bank imposes on the mortgaged to pay the expenses of formalization and constitution of the mortgage, as well as the payment of the taxes that correspond to the bank.
In March 27,720 mortgages on housing were signed the highest figure since January 2012 according to the INE. After the fall registered in the second month of the year, the formalization of mortgage loans resumed the increases and recorded a rise of 20.2% year-on-year. 35% of the mortgages signed are at a fixed rate, while the average interest rate is the highest since August.