July 27, 2021

The Supreme will continue tomorrow the debate on the controversy of mortgages

The Supreme will continue tomorrow the debate on the controversy of mortgages


The Supreme Court will continue tomorrow the debate on the controversy of mortgages after not reaching an agreement today. With all the lights on, the Supreme Court will continue tomorrow the debate on the controversy of the mortgages. The plenary session of the Contentious-Administrative Chamber will resume the plenary session at 10.30 am after not reaching a decision after about seven hours of meeting.

Specifically, the judges must decide if they confirm, revoke or qualify the sentence in which they established that it is the financial institution, and not the client, who must pay the tax of Documented Legal Acts (AJD) by the writing of the mortgage before the notary. That ruling, which became known on October 18, was a turning point in the doctrine of the Supreme Court and led to a collapse of the stock market, which lost 6,000 million euros that day.

During the plenary session on Monday, the decision has divided the High Court. During the seven hours that the match lasted, the judges have shown opposing positions and have debated with intensity what measure to adopt. A total of 28 magistrates have attended the plenary, three less than planned. Among those absent, according to legal sources, one had a trip, another presides over the Central Electoral Board and another has two children with protective housing in Rivas-Vaciamadrid, with which he considered it pertinent not to intervene in the decision.

Meanwhile, banking has registered a relatively calm day in the stock market. Bankia (1.8%), Caixabank (0.84%), BBVA (0.83%), Sabadell (0.5%) and Bankinter (0.35%) registered gains within the Ibex. Only Santander has fallen, and has done so by a meager 0.63%.

Various scenarios

The foreseeable thing is that this Tuesday the magistrates corroborate the criterion of the judgment in question, whose application to the case that it resolved is not reviewable when dealing with a firm decision. But the plenary itself can study the general doctrine and is expected to define the temporal scope of the decision. This will mark who has the right to claim, which will modulate the «knock»To the bank.

The most expected scenario would be for the new doctrine to affect – in addition to the signed mortgages from now on – also to all those subscribed in the last four years. This is because the Stamp Duty tax has that statute of limitations. The rating agency Moody's has estimated the invoice in this hypothesis at 2,300 euros.

If there were total retroactivity – if they could claim all those who have signed a loan to buy a home – something improbable, the "account" would amount to 29,200 million, according to estimates of the union of technicians of Finance (Gestha).

The experts consulted explain that, whatever the final decision of the High Court, an avalanche of claims is expected. Although the Supreme Court determined that there is no retroactivity and that it is from now on when the criterion is changed, there will be claims through administrative litigation but also through civil proceedings.


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