The Supreme Court paralyzes the sentence that forces banks to pay the costs of mortgages
The Supreme Court will review if it continues to apply its criterion, known on Thursday, to endorse the payment by the bank of the tax of documented legal acts linked to a mortgage , for which it has agreed to paralyze with urgency all the resources raised in this regard.
In an information note from the president of the third chamber of the high court, Luis María Díez-Picazo, this decision has been adopted taking into account the “radical turn” in the jurisprudence and the “enormous economic and social impact” of a ruling that attributed this tax to the entities for being those interested in the operation.
As reported by legal sources, the stoppage does not imply the suspension of the recent doctrine, which will continue to be in force until the plenary, composed of 31 judges , meets. From this meeting, scheduled for the next few days, the future resolution of the rest of the appeals will depend.
In its recent ruling, the magistrates of the Contentious-Administrative Chamber agreed to attribute the payment of the tax to the banks and not to the client, since they are those interested in having the executive and privileged action derived from the mortgage.
In this way it modified its previous jurisprudence, according to which it was the user or consumer who had to face this tax, which for an average mortgage of 150,000 euros would entail an amount close to 1,500 euros.
However, the change did not have the unanimity of the room to have the private vote of the magistrate Dimitry Berberoff.
Although it is still unknown if the ruling is applied with full retroactive effect since the Royal Decree implementing the documented legal acts came into force, in 1995, the new mortgage rules could have a big impact for banks , which only in July 2014 and the same month of this year they participated in about 1.5 million mortgage loans for the purchase of all types of farms.
The amount of these operations was around 190,000 million euros, so that given that the levy is between 0.5% and 1.5% of the total granted, financial institutions may have to disburse around 1,900 million euros.
Although the tax also applies to homes acquired by purchase, the judgment of the Supreme Court only refers to documented legal acts linked to mortgage loans .