Legal tip 956. Funds to enterpreneurs
23 May 2013
Posted at 12:35 Comments (0)
The president of the European Central Bank Mario Draghi has stressed the need to revive lending to small and medium enterprises (SME) in more favorable conditions.
It has no sense in an Economic and Monetary Union (EMU) that a French or German SME itself at an interest rate of around 2% and a Spanish or Italian one has to pay more than 5%. This is what is known as market fragmentation and in order to solve the problem the institution has already formed a working team with the European Investment Bank (EIB) and other public bodies.
In this sense, the Spanish Official Credit Institute (ICO), together with its counterparts in the eurozone, as the German KFW, will play a key role
ICO signed last week an agreement with the EIB of 500 million euros in order to increase funding for SME and medium-sized companies (up to 3000 employees), mainly in the industrial and service sectors.
The Government approved in mid-March an injection of 22,000 million euros for freelancers and SME through five lines of financing from ICO. The Institute represents 3% of bank assets in Spain, but that 3% turns into 11% of the loan to SMEs.
The ICO is a recurring debt issuer and, in the same way that the state, it has suffered the volatility generated by the increasing lack of investor confidence. In 2013, it has attracted more than 2,500 million euros and the total outstanding balance exceeds 66,000 million. It maintain permanent road shows mainly with investors.
President of ICO in Spain has noticed a change in investor perceptions about the Spanish role. "The rescue is no longer a concern." Furthermore, investors are returning, not only from the eurozone, but also Europeans (UK, Switzerland), from the U.S.A and from East. "We found a clear improvement in confidence in Spain. I think they increasingly see our country as a potential market, with future and to invest. "
At this time, the major concern, the big question for investors is about the ability of the Spanish economy to grow in the long term. "There is a market consensus that we will go to a recovery, probably as early as the fourth quarter of this year, and we will return to positive rates next year."
The president of the Official Credit Institute (ICO), Román Escolano, has put on the table a fund of funds, provided with 1,200 million euros, which seeks "the transformation of venture capital in Spain " with the goal of facilitating the alternative financing to the bank one. In order to cope with the credit lack, the head of the ICO warns that "what is needed is more access to own funds, to equity". "Spain is less developed in this area that the U.S. and Israel," he explains.
From the fund of funds -which will have the name of -Fond- Global ICO- will hang the bilateral fund to finance to SMEs which has been agreed by the Economy Minister , Guindos, and the German Treasury one, Schaüble. Escolano is simplifying credit lines, a change that will allow easier access to the 22,000 million which will be mobilized in the coming months to fund to entrepreneurs.
Sanlúcar de Barrameda, Cádiz, Southwest of Spain
Legal tip 955. Announced support for foreign enterpreneurs in Spain
22 May 2013
Posted at 14:04 Comments (2)
The Minister of Employment and Social Security, Fatima Bañez, announced on last 20th of May that the Draft Law on Enterpreneurs is almost finalized.
This aims to reduce the Social Securiry contributions to the self-employed who are in situation of multiple activities and will facilitate the entry of foreign investors who create employment.
During her speech Fatima Bañez stressed that it will facilitate the entry and residence of foreign investors and entrepreneurs evidencing an intention to do economically relevant investments, seeking to undertake and create jobs in our country. Also it will facilitate the attraction of highly qualified professionals and researchers.
The National Reform Program provides for a new regime, for visas and residence authorizations to drive the attraction of talent and investment.
These authorisations will be easily obtainable and valid throughout the national territory. It will apply to foreigners who invest in business projects that create jobs , making an investment with relevant socio-economic impact or a significant contribution to scientific and technological innovation.
Only with the Strategy of Entrepreneurship and Youth Employment it is expected to carry out more than two million actions throughout its four years of development and in particular, the emergency measures will benefit more than one million young people”
"In short- the minister concluded- we have incentivized the permanent and quality hiring of our youth and we have implemented measures to incentivize entrepreneurship among the youth with a flat rate of 50€, and initiatives that improve the protection of the self-employed and develop the so-called second chance. "
A related post: Spain´s growth by its foreign lovers and some other ones, as we have been asking for repeatedly :
Route among El Bosque and Benamahoma, Cádiz, South of Spain
Legal tip 954. Essential IESE Newsletter
22 May 2013
Posted at 08:46 Comments (0)
Exciting as always!
Zahara de los Atunes, Cadiz, Southwest of Spain; and África at the bottom of the image
Legal tip 953. Purchase option and rent with purchase option in Spain
21 May 2013
Posted at 14:21 Comments (0)
A scientific explanation of a legal figure which, again, might be a good way to go for property purchase in Spain. Option to purchase
AP Barcelona January 28, 2009 gives a precise definition of the purchase option:
"That agreement by virtue of which one party grants to another the exclusive right to decide on the execution or not of another main contract, to be done within a certain period and in certain conditions, which may also be accompanied by the payment of a premium by the elector, and constituting therefore its essential elements:
-the allowance to the elector of the unilateral decision regarding the execution of the purchase,
-the indication of the price stipulated for the future acquisition and
-the determining of the period for the exercise of the option;
being an "accessory" element the payment of the premium.
The optionor is who is unilaterally linked until the elector decides. It is governed by the general provisions on obligations and contracts except the rules that do not suit its own essence.
It is a preparatory contract. Among others, sentences of the Supreme Court February 14, 1997 and May 18, 1995.
Therefore consists in granting the elector, by clause inserted into the urban lease, the sole authority to give consent within the period contractually stated, to the offer of sale
"Lease with purchase option"
The sentence of the Supreme Court dated July 6th, 2001, defines the lease with purchase option as the insertion of a clause by which it is fixed the sole authority to give his consent within the period contractually stated to the offer of sale, which by the primary effect of the option is binding for the promissor, who cannot takes it back during this time , and once appropriately exercised the option expires and is consummated and the purchase agreement is automatically perfected without the possibility that the optionor or the grantor can do anything, to thwart its effectiveness, because it is sufficient for the perfection of the sale with the elector, as in the discussed case has been proved , that he has communicated his will to exercise its right of option. In the same line, sentence April 3, 2006.
Once duly exercised the option expires and it is consummated and the purchase agreement is perfected automatically, without the owner or grantor can do anything to thwart its effectiveness, because it is enough for the perfection of the sale that his will to exercise their right of option has been communicated.
The price is an essential element of the sale and it is a fundamental requirement to be fixed or determinable. By contrast, the option can be by price or free. Therefore the payment of the premium is an accessory element
The option right cannot be assigned by the elector in favor of third parties without the consent of the grantor. The reason for this is that it is not a true subjective right but only an authorization. The consent must be express but from a civil standpoint the tacit consent is admitted.
Beach of Chipiona, Cádiz, Southwest of Spain.
Legal tip 952. Goods of new Mortgagor aid Law
20 May 2013
Posted at 11:42 Comments (0)
There are many things I like about this Law but always, take into account, this is for mortagge debtors where the mortgaged property is a first residency and meets the requisites of exclusion.
- I like the fact that debtor can properly deffend himself now in the repossession/enforcement procedure, specially if abusive clauses are contained in the mortgage deeds.
- I like the fact that it puts higher limits for Banks to value repossessed properties and it also limits quite well the possibilities for the bank to unfairly keep requesting rest of debt after repossession.
- I like the fact that it puts and end to monopoly of some property valuation companies and makes any valuation brought by the consumer, obligatory by the bank under strict sanctioning.
- I like the fact that it enhances transparency and possibilities for everyone to auction.
I like a lot that makes a call to the government for social use of empty houses owned by Banks
Jimena de la Frontera, Cádiz, South of Spain.
Legal tip 951. Mediation and trust
20 May 2013
Posted at 11:14 Comments (0)
De Rosa. Vicepresident of the General Council of Judicial Power (GCJP) says that in Spain "there are more than 9 million new cases every year" and sees mediation as alternative figure
Mediation Act is "an alternative method to the judicial process and it has to be absolutely supported."
"The judicial support given to the mediation must be a system in which society itself tries to solve its problems by itself and it makes justice fulfill that constitutional objective, which is to be the last resort of the citizens,"
What is needed so that mediation works is "a social conscience and good mediators and especially the mechanisms in which society trusts are established ".
De Rosa pointed out that Spanish society "today trusts the administration of justice, so it goes to the judges" but also "society has to trust that this mediation will give the same result than going to the Administration of Justice ".
Trust. Not an easy word. Ethical revolution needed to society can freely breath. Possibly not before some Politicians, Bankers and High People are sent to jail for real. They are people at the end of the day under same legal and ethical rules as the rest. Do not get blind.
Alcalá de los Gazules, Cádiz, Southwest of Spain
Legal tip 950. Insurance Policy for CostaGalera phase III clients
17 May 2013
Posted at 12:22 Comments (0)
For those of you interested. We have received ( for a client of us claiming deposits out of Law 57/68) the General Insurance Policy for the recovery of amounts paid in Costa Galera Phase III.
For those of you who were not provided with this, and were legally entitled to it. You can now claim using this General Policy. Case Law backing this.
Have a great weekend!
Strait of Gibraltar, Cádiz, South of Spain
Legal tip 949. NEW! Law on protection of mortgage debtors in Spain
17 May 2013
Posted at 09:47 Comments (0)
Summary of Act 1/2013, of May 14, on measures to strengthen the protection to mortgage debtors, debt restructuring and social rent (BOE of 15-5-2013)
In "attention to the exceptional circumstances facing our country, motivated by the economic and financial crisis, in which many people who hired a mortgage loan to purchase their primary residence have difficulties to meet their obligations" Act 1/2013 has just been published
This Act, contains four chapters.
Chapter I (Suspension of repossessions) : provides immediate suspension for a period of two years for evictions of families who are in a particular risk of exclusion.
We estimate as families in such a situation those:
a) Single-parent families with two dependent children, families with a child less than three years old or a disabled or dependent member, or families in which the mortgagor is unemployed and has exhausted the social benefits or, finally, the victims of domestic violence.
b) Whose income does not exceed three times the Public Indicator of Multiple Effect Income.
This limit rises on households in which a member is disabled or dependent or residing with disabled or dependent persons.
It is also necessary that in the four years preceding the time of the application, the family unit has undergone a significant alteration of their economic circumstances, in terms of effort to access to housing. This significant alteration of their economic circumstances is measured based on the change of the mortgage burden in the income suffered in the last four years.
This measure, exceptionally and temporarily, will affect any prosecution of foreclosure or extrajudicial sale.
In these cases, the Law, without altering the foreclosure process prevents the eviction.
Finally, the inclusion in the scope of application goes through the fulfillment of other requirements, among which we can highlight that the resulting mortgage payment exceeds 50 percent of the net income received by all the members of the family unit, or it is a question of a loan or mortgage loan secured only falling upon the only owned debtor's home and granted for the acquisition of it.
For these particularly vulnerable debtors, the debt will not accrue more delay interest than the result of adding to the compensatory interests two percent on outstanding debt.
Chapter II on Measures to improve the mortgage market:
Especially relevant is the fact that, for mortgages on first residence, default interest will be limited to three times the legal interest.
It also explicitly prohibits capitalization of these interests and provides that in case that the result of the repossession is insufficient to cover the entire secured debt, this result will be applied to delay interests, so that it is allowed, in a big extent, that the principal amount stops accruing interest.
In the extrajudicial sale of mortgaged properties, law introduces the possibility that the notary can suspend it when the parties can prove that it has been requested to the competent court, as provided by Article 129 of the Mortgage Law, to issue resolution decreeing inappropriateness of such sale, because of the existence of abusive clauses in the mortgage loan or its continuation without the application of the abusive clauses. Furthermore, it expressly empowers the notary to advise the parties on abusive clauses .These amendments are adopted as a result of the judgment of the Court of Justice of the European Union of 14 March 2013
On the other hand, it is strengthened the independence of valuation companies from credit institutions. And legal valuations made by the client need to be accepted by the Bank under strong sanctions.
Chapter III on Modification of the foreclosure procedure :
These modifications are intended to ensure that foreclosure is done so that the rights and interests of the mortgagor are adequately protected and, overall, a speedier and more flexible enforcement proceeding is done.
In particular, as a measure of great importance, it is established the possibility that if after an usual home foreclosure it still remains an outstanding debt ,during the subsequent moeny enforcement proceedings part of the payment of the remaining debt will be canceled , provided that certain payment obligations are fulfilled.
In addition, the debtor is allowed to participate in the potential future appreciation of the executed house.
On the other hand, it facilitates access of bidders to auctions and the requirements imposed on them are reduced, so that, for example, it decreases the necessary guarantee to bid from 20 to 5 per cent of the appraised value of goods.
Also it doubles, in the same sense, the period to consign the price of the award for the bidder of an auction.
Certain improvements in the auction procedure are introduced , establishing that the appraised value for it will not be less than 75 percent of the appraised value that was used to grant the loan. Previously there was no limit to the type of auction. In addition, in the event that the auction ended without any bidder, the percentage of the allocation of the property increases. Specifically, it would rise from 60 per cent to a maximum of 70 percent, always for cases of residence.
This Chapter also includes the modification of the enforcement proceedings to the effect that, on its own initiative or upon request, the competent court can appreciate the existence of abusive clauses in the enforcement order and, therefore, it declares the invalidity of the execution or , in its case , its continuation without application of those clauses estimated abusive.
Chapter IV . It offers different solutions against foreclosure to those under exclusion risk and meeting certain requisites.
Retroactivity: For repossession procedures already started, this Law will be applied just to those enforcement acts still to be perfomed
"Plaza de España", Grazalema, Cádiz, South of Spain
Legal tip 948. IMPORTANT. Claim on Illegal Insurances assisted by Ministry of Economy
16 May 2013
Posted at 13:41 Comments (1)
Ministry of Economy has contacted us today for us to collaborate with them on the inspection and punishment of illegal Insurance Companies which operated in our territory during the real estate boom or are still operating.
Anyone affected by any of these, please email us to: email@example.com with the subject: Illegal Insurance
This is the list of those non authorised companies.
AGRUPACIÓN DE CAPITALES, S.A.
ALBATROSS INVEST, S.P.A.
AMERICAN BRITISH INSURANCE Ltd.
ASOCIACION COARBI CORTE ESPAÑOLA DE ARBITRAJE INSTITUCIONAL
ASOCIACIÓN CORTE ESPAÑOLA DE ARBITRAJE ECONÓMICO DE DERECHO Y EQUIDAD
ASOCIACIÓN GESTORA ESPAÑOLA DE ARBITRAJE
ASOCIACIÓN PROMOTORA ESPAÑOLA DE CORTES DE ARBITRAJE
BARKLEY DEVELOPMENT CORPORATION (sin vínculos ni relación con W.R. BERKLEY INSURANCE (EUROPE) LIMITED SUC. EN ESPAÑA, que es entidad aseguradora autorizada)
COBERTURA ASISTENCIAL DEPORTIVA S.L.
COMPAGNIE DES GARANTIES DE LUXEMBOURG, S.A. /COMPAGNIE
CORSA FINANCE LTD
DES GARANTIES, S.A-COMPAGNIA DI CAUZIONI, S.A-CAUZIONI, S.A.
DIMAX, DISTRIBUCIONES DEL TERCER MILENIO, S.L.
EUROCAUCIÓN LEVANTE SL
EUROPA CAUZIONI, S.p.A.
EUROPEAN COMPANY OF GUARANTEE LTD
GABINETE PREVENTIVO DE MEDICINA DEPORTIVA
GENERAL FIDI CONSORCIO GARANTIA FIDI
GRAVITELL INSURANCE@REINSURANCE BROKERS S.L
HENRY MORTIMER PLC
HUGIES ROYAL FINANCE CORPORATION
LAUREN´S INSURANCE, Ltd.
LÓPEZ SEGUROS INTERNATIONAL INSURANCE COMPANY
MEMORIAL EXEQUIAS INTERNACIONAL S.L.
MERRION REINSURANCE COMPANY, Ltd.
MUTUELLE DE STRASBOURG
MUTUELLE INTERNAZIONALE D´ASSURANCES LA PARISIENNE
NORTHERNEEF INSURANCE COMPANY
SECURE CONSTRUCTION LIMITED
SHAMROCK PROPERTIES OVERSEAS LIMITEDv
SUNNY LUCKY SEGUROS
SWISS FINANCIAL CORPORATION
TEMPLETON INSURANCE LTD
TOP CLASS INSURANCE
UNIÓN GENERAL DE VALORES, S.A.
Street of Benamahoma, Cádiz, South-west of Spain
Legal tip 947. NEW! Spain Supreme Court and lack of financiation
14 May 2013
Posted at 16:27 Comments (0)
In a decision dated January 13rd this year, the First Chamber of the Supreme Court confirmed the cancellation of a property purchase contract due to breach of the obligation of the seller to provide finances to the buyer.
According to claimants, seller had breached its contract, which expressly stated the right of subrogation of mortgage loan of developers, thereby ensuring obtaining the necessary funding for housing acquisition.
The Supreme Court had stated on previous occassions that the obligation to provide financing by developers is incidental ( non essential- no cancellatory), as reflected in the contract as an activity duty rather than a result duty, being the buyer, who is obliged to manage the mortgage himself.
However, in this new case, the reservation contract made by the seller included an offer of great commercial appeal, which was that "in any case, if you want, you can subrogate the mortgage of the seller". The developer promised that the bank would agree to subrogation and did not act sufficiently to fulfil this promise.
The Sentence keeps saying that if the developer was not in a position to offer an unconditoned financing offer to the buyer, this should have not been promised to the consumer on the contract.
Good for the pro-consumer Supreme Court!
Rota, Cádiz, Costa de la Luz, South-west of Spain.
Spam post or Abuse? Please let us know