I have constituted a mortgage a few years ago. Is it possible to receive the Spanish mortgage constitution costs back?

I HAVE CONSTITUTED A MORTGAGE A FEW YEARS AGO. IS IT POSSIBLE TO RECEIVE THE SPANISH MORTGAGE CONSTITUTION COSTS BACK?

The first decision of the Spanish authorities during the years 2012 and 2017,was that the banks had to refund all the costs to their clients: taxes, Notary and Land Registry costs, valuation report of the property, etc. On average, the bank had to pay approximately 3.000€ per client plus interests since the date of the constitution of the mortgage (this makes another 3.000€). Moreover, the banks had to pay for the lawyer and proctor costs of the clients (condemnation in costs).

Over the last years, the decision has been revised and now, the bank clients only receive a refund of the Notary, Land Registry and Gestoría fees. This makes an amount of approximately 600€ plus interests. The condemnation in costs is still valid. Recently, the courts have also approved that the banks will have to refund the “opening commission”, which is approximately 1% of the value of the mortgage, as this commission is considered outrageous and therefore unlawful.

An example for an easier understanding. A mortgage for 100.000€ that has been constituted in 2002 for 15 years and therefore ended in 2017, has generated constitution costs of approximately 600€ (Notary, Land Registry and Gestoría). We have to sum the opening commission of 1% which makes an amount of 1.000€. The interests are calculated since 2002, so the bank has to pay another 1.900€, approximately. The bank clients have therefore a right to a refund of 3.500€. The lawyer and proctor costs can be claimed as well.

We from Bufete García Garrido suggests that you should at least revise your current situation, we won’t charge any fees for the revision. In case you are entitled to receive a refund, we can of course assist you with the claim, previous agreement of our legal fees. Please feel free to contact us for any question you may have.

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