Regulatory Alerts2017-03-18
Royal Decree-Law 5/2017 of 17 March amending Royal Decree-Law 6/2012 and Law 1/2013 on protection of mortgage debtors without resources
The Spanish Government issued Royal Decree-Law 5/2017 to extend the suspension of evictions for vulnerable mortgage debtors until May 2020 and expand the scope of the Good Practices Code to include families with minors, large families, and victims of gender violence. The decree establishes a mechanism allowing suspended debtors to rent their foreclosed homes from creditors at a maximum annual rent of 3% of the property's value for up to ten years. Additionally, it mandates the government to propose measures within eight months to facilitate the recovery of property ownership by debtors, considering equitable pricing factors.
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