We would like to report a sentence disseminated by the Consejo General del Poder Judicial (General Council of the Judiciary) regarding the obligation of bank entities to pay the total Notary and Land Registry expenses:
The Audiencia of Las Palmas obliged the bank to pay the total amount of the Notary and Registry expenses of a mortgage.
According to the Court, both the formalization of the deed before a Notary and the inscription in the Registry are made in the exclusive interest of the Bank.
The Audiencia of Las Palmas has annulled the Notary and Registry expenses in the constitution of a mortgage signed with Bankia.
The judgment of the Fourth Section – which is competent to resolve appeals on general conditions of recruitment – states that “the clauses of the mortgage loans that attribute to the clients the payment of the totality of the expenses of Notary and Registry of Property” are null and void, detailing that the bank must reimburse to the clients not half but all the expenses that they have paid by those concepts.
“Given that both the formalization of the public deed before a notary and the inscription of the mortgage guarantee in the Land Registry are done in the exclusive interest of the Bank, it is the latter that must bear these expenses,” adds the ruling.