Mortgage arrangement fees… Who is responsible for paying them?

Taking out a mortgage entails certain costs: notary and registration fees, taxes, property appraisal, consultant fees...But, who is responsible for paying them?

To begin with, we have the right to be informed by our bank about how much these expenses will approximately add up to before authorising them. You cannot be charged without accepting them.

But then, who is responsible for paying them? In many occasions, customers have the obligation to pay, according to what has been established on the deeds. However, ruling No 705/2015 issued by the Supreme Court on December 23th 2015, deemed void a clause concerning these fees, as it was an unfair term. In that particular case, the customer assumed the obligation to pay all expenses accounting for the mortgage formalisation. This ruling has encouraged many customers to legally claim a refund of expenses they had already paid.

According to best banking practices, financial institutions are forced, at least, to assess all claims received with respect to the abovementioned ruling and to give an adequate explanation of the adopted measures.

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