SPAIN TO OFFER RESIDENCY TO FOREIGN HOUSE BUYERS

Spain is to offer foreigners residency permits if they buy houses worth more than 160,000 euro ($200,000) as part of an attempt to reduce the country's bloated stock of unsold homes. Trade Ministry secretary Jaime Garcia-Legaz said the plan, expected to be approved in the coming weeks, would be aimed principally at the Chinese and Russian markets as the domestic demand was stagnant and showed no sign of improving. Spain has more than 700,000 unsold houses following the collapse of its real estate market in 2008. The country's economy is struggling and is currently in recession with 25 percent unemployment. Thousands of houses have been repossessed by banks and their owners evicted because they cannot pay their mortgages. The government last week approved a decree under which evictions would be suspended for two years in specific cases of extreme need. The country's offer beats others in bailed-out countries such as Ireland and Portugal, where residency papers are offered to foreigners buying houses worth more the 400,000 euro and 500,000 euro, respectively. It was not immediately clear if the residency would only refer to Spain, and not the European Union. The stricken state of the country's real estate market was highlighted Monday by figures from the Bank of Spain which showed that the level of bad debt in the country's banks had risen to a record 10.7 percent of their loan total in September. The bank said the amount totaled 182 billion euro, up from 179 billion euro in August -- the 15th monthly increase in a row. The 16 other countries that use the euro have agreed to lend Spain up to 100 billion euro to help support the country's banks weighed down by these bad loans and investments. On top of the bank loan, Spain has been under pressure to apply for more outside financial aid to help it manage its debt and deficit. The European Central Bank has insisted on the move before it will make good on its pledge to buy the bonds of certain troubled countries to help lower their borrowing costs. Spain says it is waiting to know all the conditions that might come attached to the rescue package before making a decision. Source: MARTINEZ ECHEVARRIA I PEREZ I FERRERO ABOGADOS www.martinezechevarria.com

BANK SCAM – Ground Clause (Clausula Suelo)

How many times I have said to British people signing Escrituras (Deeds) in front of a Notary when they have purchased property in Spain “well my friends at least in Spain you get to see and keep the deeds of your property, whilst in your country the bank keeps it and only shows it to you if you really kick up a fuss.” One client from up north once said to me “what’s the point in me keeping it if I can’t read the bloody thing.” He also had a point. What I am getting at is that we mere mortals tend to accept blindly that because we have a lawyer, accountant, and bank manager working for us these people will look after our interest. Very often it does not work like that, not in Europe and especially not in Spain. I have discovered that my own mortgage, which I was led to believe by my friendly bank manager that the repayments could vary according to the Up and Down of the Euribor. So that Up meant I loose and Down I gain is in fact nothing of the sort, in fact Up I lose and Down I lose is the stark reality. The most frustrating thing is that I can only blame myself. I had the terms and conditions of the mortgage in my hand, all 25 pages of it and 5 minutes to read it before the Notary called us through, so I just skipped to the resume and it looked good or at least it did not mention the Ground Clause (Clausula Suelo) which was instead neatly slotted three quarters down on page 20. What the clause says is that if the Euribor goes Up your repayment increases accordingly and if it goes Down like it has now – 1% you get no benefit. As simple as that. Not all banks have resorted to this deceit, only most of them have and in 2012 Malaga courts have dictated seven sentences forcing the banks to return the money obtained through this con. In some cases the amount runs into thousands of Euros. How do you know if you have been conned by the bank? Well I read about this scam in the Spanish papers so I went to see David Perez of Martinez Echevarria Lawyers and they are working on my case. They seem to think that I will get some money back. ‘I live in hope.’ Obviously one thing will change, my friendly bank manager will not be friendly anymore.

1948 OLYMPICS - LONDON

Opening date: 29 July 1948 Closing date: 14 August 1948 After a 12-year break due to World War II, the Games return triumphantly to London. Rising to the challenge The Olympic Games had not been held in either 1940 or 1944 due to World War II, and London was called upon at short notice to host them. Despite shortages of essential products due to rationing, the city rose magnificently to the challenge - a true victory over dark times. Innovation and progress The London Games were the first to be shown on home television, although very few people in Great Britain actually owned sets. Starting blocks for athletes in sprint races were introduced for the first time, and the Empire Pool was the first covered Olympic pool to be used at the Games. Memorable performances Seventeen-year-old American Bob Mathias won the decathlon only four months after taking up the sport. He remains the youngest athlete in Olympic history to win a men’s athletics event. The dominant woman of the Games was sprinter Fanny Blankers-Koen of the Netherlands. She entered four sprint events and won all four. Overcoming adversity Karoly Takacs was a member of the Hungarian world champion pistol shooting team in 1938 when a grenade shattered his right hand - his pistol hand. Takacs taught himself to shoot with his left hand and, 10 years later, he won an Olympic gold medal in the rapid-fire pistol event. NOCs 59 Athletes 4,104 (390 women, 3,714 men) Events 136 Volunteers n/a Media n/a Events Artistic Gymnastics Athletics Basketball Boxing Canoe / Kayak Flatwater Cycling Road Cycling Track Diving Equestrian / Dressage Equestrian / Eventing Equestrian / Jumping Fencing Football Hockey Modern Pentathlon Rowing Sailing Shooting Water polo Weightlifting Wrestling Freestyle Wrestling Greco-Roman Participation Many countries, including Burma, Ceylon, Lebanon, Puerto Rico, Syria and Venezuela, were represented for the first time. On the other hand, there were no athletes from Japan, Germany or the USSR. Innovation in athletics Introduction of blocks to facilitate the start for athletes in sprint races (100m to 400m). Recognition Diplomas awarded to the first six athletes. Swimming under cover The Empire Pool was the first covered Olympic pool in history. Located not far from Wembley, it could house 8,000 spectators. As its length exceeded the regulatory 50m for an Olympic pool, a wooden platform was constructed to shorten it and to house the judges and officials. Ceremonies London, Wembley Stadium, 29 July 1948, Opening Ceremony: last torch-bearer John Mark passing the Tribune of Honour, is applauded by members of the Organising Committee. Official opening of the Games by: His Majesty King George VI Lighting the Olympic Flame by: John Mark (athletics) Olympic Oath by: Donald Finlay (athletics) Official Oath by: The officials' oath at an Olympic Summer Games was first sworn in 1972 in Munich. Olympic medallists Fanny Blankers-Koen Veikko Huhtanen Paavo Johannes Aaltonen James Price Jr. Mclane Ann Elisabeth Curtis Above and beyond Fanny BLANKERS-KOEN In 1999, Fanny Blankers-Koen was voted Female Athlete of the Century, thanks largely to her four gold medals at the 1948 London Games.

EL CHORRO GORGE AND ARDALES LAKES

For a great day out for all the family why not visit Malaga’s “Lake District”. There are three artificial lakes which have been created by a dam which is built across the striking 200m high Guadalhorce river gorge (Garganta del Chorro). The views are stunning and in the peaceful surroundings you can swim, fish or picnic on the shores of the lakes. Keep a look out for the eagles which circle around the sheer cliffs. Travelling through the Valle de Abdalajis the first sight of the dam and gorge area is on reaching the small village of El Chorro. During the construction of the reservoir between 1914 and 1921 a small bridge was built across the middle of the gorge. In 1921 King Alfonso XIII of Spain officially opened the dam and walked along a specially constructed catwalk called El Camino del Rey (the King’s Path). The catwalk is 100m above the river and pinned to the Gorge. The Camino del Rey is officially closed to the public awaiting repairs, however there are trained guides who take visitors along the path but it is not recommended for the faint-hearted. It is also a popular climbing area but should only be attempted by experienced climbers who are properly equipped. The beginning of the Camino del Rey can be found by driving across the lower dam into El Chorro village. Drive along the track on the left before the railway station and go past the camp site until you can go no further. You will have to walk the last few hundred meters. The path drops down and skirts the iron girder railway bridge but be careful crossing the line. (Von Ryans express was filmed here). The lakes are approximately 4km from here and can be reached by driving over the dam and following the road round to the left of the gorge. During the summer the lakes are very popular but due to the vastness of the shores a quiet place for sunbathing etc is easy to find. The lakeside restaurant of El Mirador is situated in a superb setting perched on top of a road tunnel and overlooking the lakes. Further along the lakes towards the picturesque dam, is El Kioskoll. There are several more bars along the lake side as well as good restaurants in El Chorro and beyond.

SPANISH PROPERTY TAXES

The purchase of a property in Spain involves - both for residents and non-residents - a series of fiscal obligations which must be met: TAXES ON CONVEYANCE OF ASSETS AND DOCUMENTED LEGAL PROCEDURES (ITP-AJD in its Spanish acronym) AND/OR IVA (Spanish equivalent to VAT): The IVA tax (equivalent to British VAT) is applicable to the purchase of newly built properties and urban plots which are immediately available for building. It amounts to 7% of the purchase price to the purchase of newly built properties, and 16% to purchase of urban plots which are immediately available for building. This tax must be paid on each instalment. In addition, the obtention of the title deed is also subject to Taxes on Conveyance of Assets and Documented Legal Procedures, 1%. It is necessary to pay the ITP-AJD taxes (taxes on Conveyance of Assets and Documented Legal Procedures), when IVA (Spanish VAT) is not applicable. The rate of ITP is 7% of the property purchase price. Remember the costs associated to a property sale transaction are normally 10% of the purchase price, and one of the mentioned taxes is included in this 10%. TAX ON REAL ESTATE (IBI in its Spanish acronym) The IBI tax must be paid every year, in one payment to be made between September 15 and November 15. Failure to pay this tax may result in the initiation of sanction procedures. We can ensure this payment is made by direct debit from your Spanish bank account, so you can rest assured you will not encounter any problems. WEALTH TAX If you are not resident in Spain, you must pay Wealth Tax (in Spanish, Impuesto sobre el Patrimonio), which is applicable to all the assets you have in Spain. Among these assets are real estate, bank accounts and other goods of a certain value. The rate of this tax is very low, usually around 0.20% (one fifth of a percentage point) of the total value of your assets. PROPERTY INCOME TAX Non-residents who own properties in Spain must file their tax return with the tax authorities. Spanish authorities are only interested in the amount earned by non-residents through their activities in Spain, rather than their global income. Non-residents must pay a single tax rate on any income generated in Spain. A typical example is the interests generated by deposits in accounts held in Spanish banks or the income obtained from renting properties. Any person who owns a property in Spain, but is not resident there the entire year, should designate a "fiscal representative" who will carry out all the procedures necessary before the tax authorities. We also offer this service. CAPITAL GAINS TAX Capital gains tax is payable based upon the increase between the original purchase price of a property and the selling price. This tax applies to the seller is levied at 18% to non-residents. Anyone purchasing a property from a non-resident must withhold 3% of the purchase price which is then paid to the tax authorities on account of any liability by the vendors. The vendor then has around two months in which to pay the Agencia Tributaria (spanish tax authorities) the rest of this tax. However, there are factors that can be taken into consideration to reduce the amount paid such as the costs incurred with the original purchase, and time elapsed between the initial purchase and the new sale etc. Source: Manzanares Abogados – Lawyers http://www.manzanares-es.com

NEW RULES FOR NIE APPLICATIONS

The rules regarding NIE applications have once again been revised. Local police stations are once again accepting applications on behalf of third parties from representatives with power of attorney. The last revision to the rules on 3rd January 2012 made it mandatory for individuals applying for a NIE number to personally attend the local police station to make the application. It was no longer possible to engage the services of a representative with power of attorney to carry out this process. The process of acquiring an NIE is not simple. The lack of conformity in what documentation is required is staggering as are the queues at the local police stations. It is therefore good news for those people who are daunted by the whole process of applying for an NIE number that they can now hand it over to someone else who can battle their way through the bureaucracy and queues on their behalf.

Country Codes

This article by Peter Edgerton was in the SUR IN ENGLISH recently and I thought it was very amusing.

For anyone thinking of coming to live in Spain there are a few dos and don’ts which are of the utmost importance if the transition is to be a successful and happy one.

The first detail to note is that as new arrivals we are, indeed ‘coming to live in Spain’ not ‘coming to live in a transportable version of our home country under a sunnier sky.’ A healthy acknowledgement of this basic fact will help no end. It’s a good idea, therefore, to learn a couple of phrases in Spanish before you arrive in order to avoid the classic ‘red-faced pot-bellied bloke/woman yells at bewildered waitress in thick Yorkshire/Geordie/Scouse accent scenario.’ This is always mightily embarrassing especially if what’s being bellowed involves the vocabulary ‘Dear’, ‘Darlin’ and an adjectival swear word.

In the same vein, it’s also good to try to respect local customs, especially if they have been woven into the fabric of society down the centuries. This means for example, not complaining to the town hall about the noise during Holy Week, as one legendary British couple in a white Andalusian village did a few years ago. The loud drumming and deafeningly mournful music is all part of the cultural and religious experience. Rumour has it they were annoyed because they couldn’t hear a repeat of ‘Only Fools And Horses’ properly, but this may be an urban myth.

Do try the wonderful Mediterranean diet (except the salads, obviously; they’re equally useless whichever country you’re in). When I first arrived, I couldn’t bear olives or cured ham and now they’re two of my favourite snacks. Do not – as I’ve seen happen on more than one occasion – take your own pot of mint sauce to restaurants to slap on your leg of lamb. It’s rude.

If you’re thinking of starting a business, you simply must employ someone to do the paperwork. Those hoping to save a few bob by dealing with the bureaucracy themselves usually end up in one of two places: Alhaurin prison (for lamping the twenty third person to tell them that they’re not in the correct office and the one they want is three miles away but is just about to shut for two days for no apparent reason) or a lunatic asylum, rocking and drooling in a darkened corner, endlessly repeating the same speech, ‘But, I brought nine photocopies of my mother’s driving licence just as she asked. No-one mentioned my dad’s golf club membership card. I only wanted to open a cake shop.’

Don’t worry about people shouting at each other at all times, there’s no need to call the police. Full-blooded screaming matches are appropriate to any number of situations over here e.g. discussing a disputed handball decision from last night’s football match, cursing the immediate family of a neighbour in extraordinarily graphic terms or asking someone for the time. Don’t try to compete when these moments arise in social situations, you’ll be brow-beaten into submission by a combination of decibels and dogged determination. I’ve long suspected that Spanish people practice circular breathing rather like didgeridoo players in order to avoid the inconvenience of having to pause for breath when in full flight. There is no conclusive proof of this, however.

So returning to the idea of learning rudimentary Spanish before coming over, I’d like to suggest three indispensable phrases to learn before arrival.

‘Sin ensalada, gracias.’ (‘No salad, thank you.’), ‘Perdone, es que tengo que irme, no quiero perder Solo Tontos Y Caballos.’ (Sorry, I’m afraid I have to go, I don’t want to miss Only Fools and Horses) and ¿Oye, tocas el didgeridoo, por casualidad? (‘Hey, do you play the didgeridoo, by any chance?’). The last one you may have to scream very loudly.

A HOME FROM HOME FOR BRITS

I read this interesting article in the SUR In English and thought I would share it with you.

Andalucia offers the best of Britain and Spain, and those who make the move find they don’t have to go without home comforts.
Stereotypes and sweeping statements surround the idea of ‘the Brits in Spain’. It is widely assumed that British expatriates in Spain do not integrate and do not learn the language. It is implied that they don’t take any interest in Spain or the Spanish way of life, that they spend most of their time in British bars and buy British goods wherever possible.

The truth is that while this is generalisation, this scenario is perfectly possible, in an environment which welcomes Brits who wish to continue to live their British life in a new location. There are businesses whose sole purpose it is to help those who don’t speak the language to settle in and make the most out of life in Spain.

The attraction

Britons are attracted to Spain by the sea and mountain views, Spanish fiestas and food, the warm winter sun, the holiday atmosphere and the friendly people.
It is often said that the foreign public’s image of Spain is the reality of Andalucia, with flamenco, fiestas, white villages nestled on hillsides, Moorish castles, endless blue skies, olive groves and sun-soaked beaches.
The Costa del Sol offers the best of what both Britain and Spain can offer. The rise of budget airlines and last minute deals has made it easier than ever to be able to travel affordably to and from the UK, and the ability to fly back cheaply to see relatives is an important factor in the decision of those who choose to relocate to Andalucia rather than somewhere further afield.

Both residents and tourists can enjoy the proximity of traditional, rural Spain as well as the many benefits offered by a modern tourist resort. Some who settle here take trips inland to look for unspoilt Spain, while others are content to remain on the coast where British-speaking help is always on hand.

Some elderly British residents on the Costa believe that their experience of aging is far more positive than it would have been had they stayed in Britain mainly because of the weather. The higher temperatures and infrequent rainfall mean that you go out more and, because you get more exercise, you’re healthier.

Feeling valued

Those who retire to the Costa del Sol find that their new life does not mean inactivity; there is a wide range of leisure activities to take part in and mobility is eased by the warmth. Many find that they become part of a community in which they feel valued.

There are so many English speaking clubs and societies to join on the Costa del Sol that it’s a wonder anyone ever finds time to do nothing, as the stereotype suggests. These clubs incorporate all conceivable hobbies from music and dancing to flower arranging and gardening to cricket and lawn bowls to bridge and chess. And if you can’t find a club which offers what you’re interested in, then you can bet there will be a demand for it should you start one yourself.

Amenities

The close expat community incorporates British businesses, including an Iceland in Fuengirola and a Marks & Spencer in Marbella. Of course, the proximity of Gibraltar means never having to go without your favourite products from home and the internet and satellite TV allow you to enjoy British programmes abroad. There are also Spanish based radio stations and publications, including this English language newspaper, SUR in English, to keep you up to date on Spanish and expat news!
Some migrants worry about their children’s education, anxious that going to a Spanish school would leave them behind others their age and therefore unable to compete in the job market when they finish. These issues can be avoided by sending your children to an international school, of which there are many here on the Costa. However, children learn very quickly and should overcome the initial disadvantages and on leaving the Spanish school system they will be completely bilingual.

A good choice

Whether you’re looking for a beach apartment, a country cottage or a mountain retreat, or don’t care and just want to escape the drizzle and traffic queues in the UK, chances are the Costa del Sol is the place for you.

Source: http://services.surinenglish.com/virtual/20120330-special/

HOLY WEEK IN SPAIN

I am sure many of you will have watched the processions during Holy Week and wondered what the Spanish names are for some of the elements of the parades. Below are just some that I have discovered.
ANTIFAZ
The hood worn by some members of the procession. Penitentes wear just the Antifaz. Nazarenos wear both the Antifaz and the Capirote.
BANDA DE MÚSICA
The band that accompanies the processions.
CAPATAZ
Person who directs the Costaleros who carry the Paso.
CAPIROTE
Pointed or cone shaped hood worn by the Nazarenos which symbolises repentance and grief.
COSTALEROS
Persons carrying the Paso.
CIRIALES
Members of the procession dressed like priests carrying silver staffs with candles.
CIRIOS
Very long candles carried by Nazarenos.
CRUZ DE GUĺA
Cross carried in front of the procession of Nazarenos.
HERMANDAD
Is the brotherhood or members of a church who take part in the procession.
HERMANOS
Members of the Hermandad.
IMAGEN
Sculpture, typically of Christ or the Virgin Mary.
INCIENSO/INCENSARIO
Incense burned in metal containers (Incensario) hung from a rope or chain and swung about to disperse the scent.
LA MADRUGÁ
Starting late Thursday night/Friday morning. This is a series of processions which can run all through the night until the following morning.
MONAGUILLOS
Children dressed like Ciriales (Priests).
NAZARENO
Member of the Hermandad (brotherhood) dressed in a robe and a cone shaped hood to hide their identity. Colours of robes and hoods depend on the procession.
PALIO
Canopy supported by poles, or Varales which covers the image of the Virgin Mary.
PASO
Float with the Virgin Mary or Christ, decorated with candles and flowers.
SAETA
A serenade sung by one person to the imagen of the Virgin Mary. The Paso stops during the singing.
TÚNICA
Tunic or robe worn by the Nazarenos.
VARALES
Silver or gold poles supporting the canopy/Palio which covers the image of the Virgin Mary.

PROTECTION OF MORTGAGE DEBTORS

We have received this information from MARTINEZ ECHEVARRIA I PEREZ I FERRERO ABOGADOS and thought we would share it with you.
If you would like further clarification of this information please contact david.perez@martinezechevarria.com

Royal Decree Law 6/2012 of 9 March, on urgent measures to protect mortgage holders out of resources.

Object.

- Establish measures to ensure the restructuring of mortgage debt of those with special difficulties in meeting its payment;
- Relax the foreclosure proceedings.

To whom it applies:

- As a general rule, debtors located on the threshold of exclusion loan or credit agreements secured by real estate mortgage
- Will be generally applicable measures contained in Articles 12 (extrajudicial execution procedure) and 13 (preference for access to aid for tenants).

Threshold. Shall be considered located at the threshold of exclusion those debtors of credit or loan secured by mortgage on your primary residence, when they concur in all of the following:

- Must be the only house owned by the debtor
- Loan / credit granted for purchase without collateral or inadequate personal
- All members of the household must have no earned income or economic activities;
- Higher mortgage payment to 60 per 100 in net income of the household;
- Members of the family unit must lack of assets to meet debt and Mode accreditation requirements. It develops in the art. 3

Moderation of default interest. From the time that the debtor prove that is located on the threshold of exclusion, the applicable penalty interest shall not exceed the result of adding a remunerative interest on the loan agreed a 2.5 per cent on capital outstanding loan. This measure applies, though the financial institution has not signed the Code of Good Practice, as Article 4 that includes the regulation is independent of the Code.

Code of Practice.

Features:

- May voluntarily subscribe to credit institutions or any other entity, professionally, carries out the loans or mortgages;
- Published as an annex to RDL;
- Once signed, compliance is mandatory;
- Either party may compel the other to grant deed of novation of the contract, applying the provisions contained in the Code of Good Practice, with the costs borne by the applicant, the innovation will have the effects specified in Article 4.3 of the Law 2/1994, (no change in range of the mortgage, except increased responsibility or term);
- May be invoked before the courts by the affected party;
- Stay in the Code shall be for a minimum of two years, automatically renewable from year to year;
- The acquisition value of the home being financed must be less than the following limits:
- Cities of more than one million people: 200,000€.
- Over 500,000 or in metropolitan areas of over a million: 180,000€
- Over 100,000 people: 150,000€.
- Other: 120,000€.
- Will be applicable only to the member institutions, debtors and contracts referred to this Royal Decree, not walking its length, as a matter of policy or interpretation, to any other area, although, of course, the member institutions may matter purely discretionary implement the provisions of the Code of Practice to debtors or improve various provisions contained therein.

Procedure:
- Financial institutions should communicate their inclusion in the General Secretariat of Treasury and Finance, who shall publish the quarterly list in Electronic Office and the BOE.
- Monitoring will be conducted by a Commission of Control which is a representation of the Spanish Mortgage Association, the Bank of Spain, the National Stock Exchange and the Ministry of Economy who will chair the committee and have a casting vote .
- The Control Commission shall publish a yearly report on their compliance.
- May be introduced to the Bank of Spain claims arising out of any alleged failure by the banks of the Code of Good Practice, which will receive the same treatment as other claims processing and resolution which corresponds to said Bank of Spain.

Misapplication. The debtor would have benefited both the reduced penalty interest as the provisions of the Code of Practice without qualifying for it, or who willfully and deliberately, seek placed or kept on the threshold, will affect at least the following consequences:

- Be liable for damages that may have occurred for an amount not less than the benefit improperly obtained;
- Pay all costs arising from the implementation of these measures of flexibility.

Fiscal

- ITPYAJD. A new article 45.IB number 23) of the revised text:
"23. The writings of formalization of contractual innovations and mortgage lending to occur pursuant to Royal Decree Law 6/2012 of 9 March, on urgent measures to protect mortgage borrowers without resources, shall be exempt from the quota phase- the notarial stamp mode of this tax. "
- Increase in Value of Urban Land. A new paragraph 3 to Article 106 of the Act Regulating Local Tax:
"3. In transfers made by debtors within the scope of Article 2 of Royal Decree Law 6/2012 of 9 March, on urgent measures to protect mortgage holders out of resources, on the occasion of the payment in your housing provided for in paragraph 3 of Annex of that rule will be considered a substitute for the taxpayer taxable entity acquires the property without the substitute may require the taxpayer the amount of tax obligations met. "
- Income tax. It adds an additional provision to Law 35/2006 of 28 November:
"Thirty-Sixth additional provision. Foreclosed housing. Shall be exempt from this tax the capital gains that could be generated in the debtors within the scope of Article 2 of Royal Decree Law 6/2012 of 9 March, on urgent measures to protect mortgage borrowers without resources, occasion of the payment in your home under paragraph 3 of Annex of this standard. "

Tariffs. The notary and registration duties arising from the cancellation of real rights in cases of mortgage foreclosed mortgaged debtor located in the threshold for exclusion of this Royal Decree-law, give a bonus by 50 percent. The debtor shall not bear any additional cost of the financial institution that purchases mortgage free of charge, ownership of the property mortgaged before.

Extrajudicial execution procedure. This reform is of general application and not only to debtors included in the threshold of exclusion, but only affects cases where the procedure taken against a debtor's residence:

1. The realization of the value of the property will take place through a single auction for that type will be that agreed in the memorandum of mortgage. However, if you submit a bid for an amount not less than 70 percent of the amount by which the good would come to auction, means the property awarded to whoever presents the best position.
2. When submitted the highest bid is less than 70 percent of the type referred to the auction, the debtor may file, within ten days, the third to improve posture, offering more than the 70 percent of the appraised value or, even less than this amount is sufficient to achieve complete satisfaction of the right of the performer.
3. After the said period expires without the debtor of good conduct as provided in the preceding paragraph, the creditor may, within a period of five days, the award of the property or properties for an amount not less than 60 percent of the appraised value .
4. If the creditor not to make use of that authority, means the property awarded to who has submitted the highest bid, provided that the amount you have offered over 50 percent of the appraised value or, still less, cover at least the amount claimed for all items.
5. If the act of the auction no bidder has not, the creditor may, within twenty days, request the award in the amount not less than 60 percent of the appraised value.
6. If the creditor fails to make use of the option referred to above, shall be governed by the provisions of Article 236 n. Regulation of Mortgage (if there should remain deserted auctions held and the creditor fails to do the right goods procured executed, the Notary will terminate execution and close and formally registered the minutes, which opened to the courts that apply).

The reform is to adapt this procedure a set of rules (Articles 234 et seq of the Mortgage Regulations, which refers to art. 129 LH) to the reforms of the Civil Procedure Act that affected their Article 670, 671 and later additions Sixth Additional Provision.

Now, the possibility of three auctions now limited to cases where the property is not the debtor's residence.

But even after this reform, it awards for bids to cover the amount claimed, but this was ridiculous (paragraph 4), also by the creditor, if he acted as a bidder.