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Spanish Off-Plan Property - Bank Guarantees - LEY 57/68

This blog is for all those Off-Plan property purchasers in Spain who have not received Bank Guarantees for their deposit funds as required by Spanish Law, in particular LEY 57/68 Article 1.1 and 1.2 and are now at risk of losing their money. In addition many purchasers who did receive Bank Guarantees are now finding that the Spanish Banks are refusing to honour them without legal action being taken by the purchaser.

The Supreme Court cancels eight Ground Clauses in Mortgages (Cláusula Suelo) for lack of transparency
23 October 2014 @ 17:34

~~The Supreme Court cancels eight Ground Clauses in Mortgages (Cláusula Suelo) for lack of transparency

The First Chamber of the Supreme Court rejects the argument of the bank that the contracts were read by notaries and customers were advised of the possibility of reading, as this does not replace the duty to explain to users.

The Civil Chamber of the Supreme Court has annulled eight Ground Clauses (Cláusula Suelo) in mortgage contracts of the bank Caja Segovia (now part of Bankia) because the entity breached a special duty of transparency regarding these clauses it had with customers who signed mortgage contracts.

The high court rejected the argument of the case that the contracts were read by notaries and customers were advised of the possibility of reading, as this does not replace the duty of explanation and transparency by the Banks to users.

The Supreme Court is unable to examine the consequences of the declaration of nullity of the Ground Clauses relating to whether the amounts charged by the bank under this clause would be returned to consumers, because that question was rejected in the first instance and was not challenged on appeal by the aggrieved party.

The statement reaffirms the criteria established by the Supreme Court in its first judgment on ground clauses, of May 9, 2013 - which annulled ground clauses of three other entities - in a more detailed explanation of Banks special duty of transparency and the real understandability of such clauses to clients.

 



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3 Comments


eggcup said:
25 October 2014 @ 09:16

"The First Chamber of the Supreme Court rejects the argument of the bank that the contracts were read by notaries and customers were advised of the possibility of reading, as this does not replace the duty to explain to users."
Hello Keith. I love this. In effect it completely negates what the notaries do, in my opinion. They drone on and on, reading pages and pages while everyone falls asleep and in my experience no explaining is done whatsoever. This is a very interesting general point to have been made and an unusual instance of common sense prevailing in Spain.


Poedoe said:
25 October 2014 @ 09:42

I am not sure what this statement is telling us. all statements from Spanish law are not understandable unless you have a degree in Spanish Law. Is it possible for the statement to be explained so that we can all understand. Having used a Spanish Lawyer during the purchase of our property on the Costa Brave. we are still waiting for the Habitation Certificate to be granted by the Spanish governing body for the Costa Blanca area. 8 years on and still we are waiting. A simple Explanation is needed please if it is at all possible.


AVJL said:
26 October 2014 @ 00:16

Is there any chance of us getting over payment money retrospectively from the ground clauses being cancelled rather than us only getting the lower rate going forward? This does not seem fair to me but then again its Spanish law we are relying on!!


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