Courts

The Las Palmas Court rules that the bank must pay the notary in mortgages

The specialized chamber for the eastern islands establishes its doctrine, stating that the client pays the property transfer tax, while the stamp duty costs are split in half.

The Las Palmas Court rules that the bank must pay the notary in mortgages

The Fourth Section of the Provincial Court of Las Palmas, specialized in general contracting conditions in the eastern Canary province, issued a ruling this Tuesday, April 3, establishing the court's doctrine on how expenses are divided between the bank and the client, confirming that the bank should pay the notary in mortgages. 

The appeal sentence, subject to appeal before the Supreme Court, partially upholds the appeal of Banco Popular Español against the sentence of the Court of First Instance number 1 of Puerto del Rosario, which on April 15 condemned the entity to pay all expenses derived from a mortgage loan for considering them abusive. 

In accordance with the most recent jurisprudence of the Supreme Court, it establishes the following distribution: that the bank must pay the full amount of notary fees, Property Registry fees, management fees, and property appraisal fees; that the bank and the client pay half of the stamp duty included in the notary's invoice; and that the borrower client is the one who must pay the Property Transfer Tax and Documented Legal Acts.