26 October 2018 – Eje Prime
Real estate companies are warning of the impact of the legal battle over mortgages. The Federation of Real Estate Associations (FAI) estimates that more than 8,000 mortgage operations have been paralysed across Spain as a result of the decision taken by the Supreme Court that it should be the banks that pay the Documentation Registration Tax (AJD).
Similarly, the body has warned of the consequences generated by the delays and has asked entities to act “responsibly” towards their clients, given that “they may incur breaches in any “contratos de arras” they have already signed because of the delays in the signing of the mortgage loans”, according to Europa Press.
In this sense, the President of the FAI, Nora García Donet, stated that in light of the “uncertainty” generated, “the banks have delayed more than one third of the signings planned for the coming days”.
The FAI, constituted in March 2013, comprises twenty regional and local real estate associations from all over Spain. Currently, the entity groups together more than 850 real estate agencies and 3,730 professionals.
Original story: Eje Prime
Translation: Carmel Drake