Chamber for Civil Matters of our Supreme Court passed last summer a decision against a Property Valuation Company, for damages resulting from an overvaluation of several properties. The Highest Civil Court found out that the value assigned to those properties were well above the market value.
The damaged party? A bank. Yes, incredible as it sounds. Bank as damaged and causer 50/50.
Supreme Court found liable the appraisal company (Tasvalor Group, SA), its insurance company and the technician who signed the appraisal.
Supreme Court argues that the damage to the bank was not latent but real, as it lended against something of a much lower value. The decission precises the necessary cause-effect relationship between the conduct of the Valuation Company and such harmful result
Supreme Court acknowledges that the damage was also possible due to the lack of diligence of the Bank. So Bank and Valuation Company are liable 50-50
This is a good precedent for these actions to be brought about by individual buyers who bought and took mortgages for properties over valuated by Valuation companies and accepted by Banks.
We have got clients who took mortgages on illegal properties, who are now paying huge sums of money for nothing.
We also have clients that were "pressed" by Banks to keep paying the second mortgage that the developer took after consuming first loan and left unpaid before running away. Clients have no option but this or to lose their properties.
A couple of crazy expamles to be added to the catalogue of irregularities and illegalities practised by Banks during the " happy" financial years.
I trust Spanish Courts will keep being as strong and clear as they are being when punishing banks. Good for healthy society.
Maria
Bello Pueblo de Conil de la Frontera....En la Janda Litoral, Conil, Cádiz, South western Spain, by Manuel Acebedo, at flickr.com