You are on page 1of 3

MEASURES TO STRENGHEN PROTECTION MORTGAGE IN FACILITY IN SPAIN (PART 1)

TO

BORROWERS

OF

The multi-lingual Spanish law firm,Arcos & Lamers Asociados, your litigation lawyer in Spain, is pleased to provide additional information on the Spanish Law 1/2013, of May 14, on measures to strengthen the protection to debtors of a mortgage inSpain. This Spanish law was published in the Spanish Official Gazette (Boletn Oficial del EstatoB.O.E) on 05.5.2013. This law is passed as a result of the exceptional circumstances that Spain is facing, motivated by the economic and financial crisis, creating difficulties to meet with the mortgage liabilities to many people who purchased their home in Spain. Law 01/2013 consists of four chapters. Although this blog is providing deeper information on the first two.

Chapter 1: It provides the possibility of immediate suspension and within two years of the evictions of families who are in a particular risk of exclusion. This measure, exceptionally and temporarily affects all legal procedure of execution of Mortgage facilities or extrajudicial sale foreclosure in the event that the borrower is belonging to certain groups. Two types of legal requirements should be met in order to apply to the conditions mentioned in this chapter:

A) On the one hand, this chapter will be applicable to large families, single-parent families with two dependent children, those with a child less than three years old where a disabled member or dependent lives. B) In the borrower of the Spanish mortgage is unemployed and has exhausted the social benefits or, finally, are victims of domestic violence. Chapter 2: A limitation appears on default interest rates on mortgage facilities granted on residential homes. The interest on default will be limited to three times the legal interest mentioned and publicised at the law inSpain. Also explicitly prohibits capitalization of these interests, so that the outstanding interest is not generated additional interests. This law introduces the possibility that the notary can suspend an extrajudicial sale when the parties can prove that it has requested to the corresponding court, as by Article 129 of the Spanish Mortgage Law, to issue resolution that unfair terms do exist in the conditions of the loan. Feel free to contact this law firm in Marbella,Arcos & Lamers Asociados for consultation and legal tax matters in Spain. Are you a borrower of a loan in Spain and you have difficulties to fulfil your liabilities? Are you a lender of a mortgage in Spain and the borrower is not fulfilling his duties? Do you need Spanish legal and/or tax advise? Do not hesitate to contact the litigation lawyers of Arcos & Lamers Asociados for all your legal and tax advise you may need! Maria Teresa Arcos, lawyer in Marbella Wim Lamers, registered accountant (economist) in Marbella. www.arcos-lamersasociados.com Marbella, 2013.

You might also like