Since 2015 there has been a lot of debate regarding mortgage fees, as many people consider them excessive. That is to say, expenses such as: notary, registration, agency, appraisal and opening commission. In view of this problem, clauses have been established to regulate this process. That is why we inform you about the new measures to regulate mortgage expenses.
Updating of mortgage expense clauses
As mentioned above, mortgage expenses have been a latent issue since 2015. For this reason, the CJEU has established that those costs considered abusive, as well as other bureaucratic costs, will be divided between the Bank and the lender.
This agreement has been planned between 2019-2022, therefore it is not excluded that modifications may appear during 2023. Even so, the division of mortgage expenses has been an important step in the regulation of mortgages. Thisguarantees the integrity of the mortgagor, who previously paid more than 15% of the value of the loan.
What expenses does the Bank cover?
According to the rules implemented by the CJEU as of 2022, the bank must undertake to pay the following expenses:
Valuation
This process is required by the bank to know the value of the property.
Notary
It is necessary that an official endorse the legality of a mortgage contract, as well as to guarantee security to the mortgagor. Therefore, the bank must commit to guarantee this service.
Gestoría
In order to follow up on the mortgage process
Taxes on legal acts
The purpose of these taxes is to legalize the documents necessary to begin the mortgage of a real estate property.
Registration
A fundamental requirement to continue with the process is to register the property.
What expenses does the mortgagor cover?
The reduction of expenses to be covered by the client has been significant in recent years; however, it is necessary to cover the following expenses:
- Copy of the deed
Indispensable for future clarifications.
Different types of commissions: opening, repayment of advances, subrogation.
These fees depend on the financial institution with which you make your mortgage application.
Expenses to be taken into account in addition to mortgage expenses
Thanks to the mortgage expense clauses, customers do not have to bear the costs of documentation. However, it is important to note that there are other expenses that the client must comply with.
For example, it is necessary for the client to take out homeowner’s insurance, so that his investment is not lost in the event of an accident of any kind. In addition, the client may choose to take out a life insurance policy to support their immediate family members. Both loans can be offered by the bank where the mortgage process is being carried out.
Claiming mortgage expenses
Another point in favor of the mortgage expense clauses that have been established in the past 2022 is that it guarantees the harmed clients. That is, if you went through a mortgage process and paid an excessive cost for such process, you can demand a refund.
As agreed last year, if a customer proves that abusive clauses were applied to him, he can demand a full refund of the excess costs. To do so, a court must examine the case and determine whether arbitrary mortgage expenses were incurred. This may apply even if the mortgage is already paid off.
In conclusion, if you are going to carry out a mortgage process or you have already done it and you consider that you have incurred excess expenses, you can turn to an expert. Only an expert will be able to advise you properly on the subject.
For more information about experts in legal matters we advise you to go to the following link. On the other hand, if you are interested in learning more about mortgages, we suggest you consult the following page.
