When you approach a bank in Spain to apply for a mortgage loan, the bank requests a valuation (tasacion). It is an economic appraisal of the property, to know the value of the property (guarantee of the loan). But, can you claim for the valuation expenses? Can you claim against the bank?
Invalidity of the expense clause
As we have said on many occasions, many of the expense clauses of mortgage loans are nullified. Because they say that all expenses will be paid by the clients. In these cases, they are ABUSIVE.
Consequently, if they are declared null, the valuation expenses paid could be claimed back, if according to the law the client is not required to pay them.
Who should pay the valuation expenses?
The Spanish courts have ruled in different ways.
But the truth is that the appraisal or valuation, (as we understand the situation) is mainly useful for the bank. Because:
. -The valuations tell that entity the value of the property, which will serve as a guarantee of the loan.
. -In addition, it is a requirement for the bank to be able to undertake a direct court execution of the mortgage.
Supreme Court Decision
Finally, the Supreme Court has resolved this issue. In its decision of the 27/01/2021, number: 35/2021 which basically says:
. – The so-called valuation expenses are the cost of the appraisal of the property, that will be the mortgage guarantee.
. – The valuation is not a requirement of validity of the mortgage.
. -That none of the regulations (until 2019), indicated who should pay it.
. -That with the approval of Law 5/2019, it was established that the valuation expenses correspond to the borrower, that is, the client.
. -But what happens with the loans to which the law 5/2019 does not apply, because they were signed before that date?
What must apply is the decision of the Court of Justice of the European Union, of 16/7/2020.
This says that in the absence of a rule that imposes costs on the client and in the event that the expenses clause is declared void, the bank must return the amount paid to the client.
Therefore, we can conclude that:
. -It is be possible to claim for the valuation expenses, and get them back; for the loans signed prior to the law 5/2019.
. -For those mortgage loans regulated by law 5/2019, these expenses must be paid by the client i.e., the borrower.
In principle, those who completed their mortgage NO more than five ago years may claim, due to the deadline for this kind of action.
If you have questions about how to claim against the bank, contact us.
The information provided in this article is not intended to be legal advice, it merely conveys information related to legal issues.
Carlos Baos (Lawyer)
White & Baos
Tel: +34 966 426 185
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