The Court has definitively closed the sanctioning process after the European Commission withdrew its demand when the Law regulating real estate credit contracts entered into force and the transposition of the directive was completed

The Court of Justice of the European Union (CJEU) has issued the order to file the sanctioning process open to Spain for the delay in transposition of Directive 2014/17 on Real Estate Credit Contracts. The decision of the Court comes after the European Commission informed him of the withdrawal of his claim against Spain, by completing the transposition with the entry into force on June 16 of the Law regulating real estate credit agreements and the Royal decree and the ministerial order that develop it.

In this way, Spain is definitively free of a sanction that could have amounted to almost 80 million euros.

The Community directive should have been incorporated into the Spanish legal system before March 21, 2016. After the date and the corresponding notices were sent without significant progress, the European Commission filed a lawsuit against Spain on April 28, 2017 before the TJUE

As soon as it took office in June 2018, the Government set the transposition of this directive and others that also accumulated a long delay as one of its priorities.

Greater legal certainty, transparency and protection for citizens

The Ministry of Economy and Business immediately transferred its proposals to the Congress of Deputies, where the negotiation resulted in a broad parliamentary agreement that increases protection and guarantees the rights of customers, while reinforcing the legal security and transparency of the sector .

In this sense, the Law regulating real estate credit agreements clarifies the distribution of expenses between the parties and establishes that the client must assume only the appraisal. Land clauses are also permanently eliminated from mortgages, so that borrowers can benefit from interest rate declines.

The new law reduces the interest on late payment and modifies another essential aspect such as early maturity, increasing the number of unpaid monthly installments necessary for a contract to be executed. The Code of Good Practices to which the vast majority of our financial institutions have adhered, thus committing themselves to provide a solution to vulnerable families so that they can access mechanisms such as debt renegotiation, is permanently applied. , you remove them or the dation in payment before proceeding to eviction.

Also, for greater security and transparency, a notary must confirm that the customer knows the product prior to signing the contract.

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