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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.
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Legal tip 1434. Repossession procedures frozen in Spain
21 August 2017

Spain Supreme Court in its decisions dated   23rd of December 2015 and  18th of February 2016   has ruled on the nullity of clause on early maturity  of mortgage loan  which

 
(a) does not discriminate the class of default of the debtor, or 
(b)   entitles the creditor to cancel the contract on default of a single repayment installment of the loan 


The Aziz Judgement by the Court of Justice of the European Union, dated 14th of March 2013 also stated this in its paragraph 73.


According to the European Court, the procedural consequence of this would be that the creditor, the Bank, would lack title to start the execution. The foreclosure procedure must be dismissed pure and simply. To this, it was added the obligation of the judge to assess the nullity ex officio, at any stage of the procedure

On the contrary, Supreme Court decision dated 23rd of December 2015 reiterates that the nullity of the provision of early maturity would not necessarily determine the dismissal of execution, but rather:

“assess, in the specific case, whether the creditor's ability to exercise early maturity is justified on the basis of the following criteria:
(1) Essentiality of the unfulfilled obligation
(2) Severity of the breach in relation to the amount and duration of the loan agreement and
(3) Real possibility of the consumer to avoid this consequence; As established by the aforementioned STJUE of 14 March 2013 (Aziz case).

The Plenum of the First Chamber of the Supreme Court has therefore raised a preliminary ruling before the European Court of Justice, in interpretation of art. 6.1 of the Directive.

The doubts of the TS arise on two aspects:


 (A) Whether it may be admissible that the declaration of invalidity of the advanced maturity clause applied just to clauses where just one month would imply the default.
(B) That the application of the law is operative, when it is more favorable to the consumer than the pure and simple expulsion of the clause

As Supreme Court is waiting for the European Court of Justice to answer on this, many repossession procedures are currently stopped in Spain

Related discussion thread at EyeOnSpain Forum

Costaluz Lawyers services

Zahara de la Sierra, Cádiz, Southern Spain



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List of cases won by CostaLuz Lawyers/ De Castro in 2017 so far
07 August 2017

 

List of cases won by CostaLuz Lawyers/ De Castro in 2017 so far:

BANK / INSURER PROMOTOR DEVELOPMENT
SGR, BBVA, BANCO SABADELL HERRADA DEL TOLLO S.L. SANTA ANA DEL MONTE
BANCO SABADELL RUDINA MIRADOR DE IZNALLOZ
BBVA (CATALUNYA BANC SA) BRONCHO PROMOCIONES LA TERCIA REAL
N/A HUMA INDALO SL OASIS TABERNAX
CAIXABANK SOLERA EL TRAMPOLIN SL TRAMPOLIN HILLS GOLF RESORT
BANCO SABADELL (CAM) CLEYTON GES LAS HIGUERICAS FINCA PARCS
CAIXABANK MANILVA COSTA SA JARDINES DE MANILVA
BANCO POPULAR MIRAFLORES DEVELOPMENT INVERSIONES SL VISTAS DEL LAGO
BANCO POPULAR LA RESERVA DE MARBELLA SL LA RESERVA DE MARBELLA
BANCO POPULAR AIFOS  
CAJA RURAL CENTRAL EUROHOUSE PUEBLO LA SAL
CAIXABANK (BARCLAYS) SIERRA BLANCA COUNTRY CLUB SL SIERRA BLANCA COUNTRY CLUB
CAJA RURAL CENTRAL EUROHOUSE FORTUNA HILLS GOLF RESORT
BBVA LEONARDO DA VINCI CAÑADAS DEL PARQUE
BANCO POPULAR PENINSULA PROJECT MANAGEMENT RESIDENCIAL GRANADA GREEN
N/A D. JUAN MAÑAS GRIMA y Dña. ANTONIA RUIZ SÁNCHEZ. N/A
BANCO POPULAR SIERRA MAR DEVELOPMENT SL HACIENDA BUENA VISTA
SGR, BBVA HERRADA DEL TOLLO S.L. SANTA ANA DEL MONTE
MILLENNIUM INSURANCE PROMAGA SAU ALTAVISTA
CAIXABANK OCHANDO SA OCHANDO GOLF
CAJA RURAL CENTRAL EUROHOUSE FORTUNA HILLS GOLF RESORT
CAIXABANK TRAMPOLIN HILLS GOLF RESORT SL TRAMPOLIN HILLS GOLF RESORT
N/A NEXT CENTURY S.L.  
CAIXABANK INTERLAKEN 2003 SL CASARES DEL SOL
ZURICH SEA GOLF APARTMENTS SL LA ALCAIDESA
BBVA SAN JOSE ALBATERA GOLF
BANKIA CONSTRUCCIONES MONTE PUCHOL SL ANGLE TOWER
SGR, BBVA, BANCO SABADELL HERRADA DEL TOLLO S.L. SANTA ANA DEL MONTE
BANCO POPULAR HUMA ALMANZORA COUNTRY CLUB

 

"Costa Ballena", among Chipiona and Rota, Cádiz, Costa de la Luz, South western Spain



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