Legislation

Supreme Court Renders Banks Defenseless.

The days of banks dismissing claims from customers by citing an alleged expiration of the reclamation period are over. The Supreme Court ruling on June 14 has adopted the Doctrine of the Court of Justice of the European Union, definitively clarifying the timeframe for claiming back undue mortgage expenses (50% of notarial fees and 100% of administrative, registration, and appraisal fees): the clock starts ticking from the moment the specific clause is declared null.

This opens the floodgates for a wave of claims on old or even canceled mortgages, as the date of the mortgage’s signing is irrelevant. What matters is when the customer knew or could have known that their clause was abusive, which only occurs once a specific ruling declares its nullity.

Homebuyers who have not yet reclaimed the extra money paid for mortgage expenses at the time of signing their mortgage are in the best position to act now. This ruling marks a significant advancement in consumer protection. Average amounts to recover range from €1,500 to €2,000 for principal on mortgages of €150,000 to €200,000. 

Who Can Claim Mortgage Expenses?

Consumers with a mortgage taken out before June 2019 can claim mortgage expenses. This is because the Law on Real Estate Credit Contracts (formerly the Mortgage Law) came into effect at that time, shifting nearly all costs related to the loan to the bank. For mortgages taken out before June 2019, it does not matter what year the contract was signed or whether the mortgage has been fully repaid.

¿Qué gastos se pueden reclamar?

The reclaimable expenses are those that the bank should have covered at the time of signing the mortgage loan and are specifically related to the establishment or modification of the mortgage (not related to the property purchase or other transactions formalized at the same time). In other words, not all paid expenses can be claimed, only those that were imposed on the client and which they should not have been responsible for according to current regulations or valid agreements. These include:

50% of Notary Fees
100% of Registration Fees
100% of Administrative Fees
100% of First Appraisal Fees

Property Transfer Tax (ITP) that applies to the GUARANTEE. This is not always paid, only when a guarantee or bond is formalized in the deed.

How to Obtain Invoices for Claims?

To initiate a claim, you need to gather all mortgage documentation, primarily the deed and all invoices that prove payment of these expenses. Generally, these invoices were provided along with the deed, so it’s likely you kept all documents together.

If you do not have the invoices, requesting documentation from the financial institution is ineffective, as they are not obligated to retain or provide these documents. Instead, you will need to contact the entities that issued them, such as the Notary, the Property Registry, the Administrative Office, and the Appraiser.

How to Claim Mortgage Expenses After the Supreme Court Ruling?

Following the recent Supreme Court ruling on mortgage expenses, claims related to these costs are now unequivocal: Financial Institutions must reimburse their clients, and therefore, clients have every right to claim. However, most institutions remain reluctant and often do not return amounts amicably, offering endless baseless excuses.

In contrast, when claims are initiated by a lawyer or specialized firm, the situation changes significantly, making it highly advisable to seek professional advice from the start.

Many banks have made consumers pay for expenses that were not their responsibility, and now is the time to recover that money. All you need to do is gather the documentation and contact us.

We will review the documents and inform you if the claim is viable. Remember, anyone can file a claim, even if the mortgage is old and already paid off.