Royal Decree-Law 27/2012 of 15 November on Urgent Measures to Strengthen Protection for Mortgage Debtors

OFFICIAL STATE BULLETIN
No. 276 Friday, 16 November 2012 Sec. I. Page 79877
I. GENERAL PROVISIONS
HEAD OF STATE
14115 Royal Decree-Law 27/2012, of 15 November, on urgent measures to strengthen protection for mortgage debtors.

STATEMENT OF MOTIVES
The attention to the exceptional circumstances through which our country is passing, motivated by the economic and financial crisis, in which numerous people who contracted a mortgage loan for the acquisition of their primary residence find themselves in difficulty in meeting their obligations, requires the adoption of measures that, in different ways, contribute to alleviating the situation of mortgage debtors.

Although the delinquency rate in our country is low, it must be kept very much in mind the social drama that it represents, for each of the persons or families that find themselves in difficulty in meeting their payments, the possibility that, due to this situation, their debts may increase or they may end up losing their primary residence.

The collective effort that the citizens of our country are making in order to overcome jointly the situation of difficulty we are going through, requires that, in the same way, and from all sectors, measures continue to be adopted to guarantee that no citizen is led to a situation of social exclusion.

To this end, it is necessary to deepen the lines that have been developed in recent times, to perfect and strengthen the protection framework for debtors who, because of such exceptional circumstances, have seen their economic or asset situation altered and have found themselves in a situation deserving of protection.

Without prejudice to the need to address a more in-depth reform of the legal framework for the treatment of natural persons in a situation of over-indebtedness and, in particular, to analyze improvements on mortgage execution mechanisms, at this moment an immediate public intervention is required to alleviate the circumstances of greater social severity that have been occurring.

To these ends, this royal decree-law is approved, whose fundamental object consists of the immediate suspension for a period of two years of evictions of families that find themselves in a situation of special risk of exclusion. This measure, with an exceptional and temporary nature, will affect any judicial or extrajudicial process of mortgage execution by which the primary residence of persons belonging to certain groups is awarded to the creditor. In these cases, the royal decree-law, without altering the mortgage execution procedure, prevents the eviction that would culminate in the eviction of the persons from proceeding.

The suspension of evictions will affect persons who find themselves within a situation of special vulnerability. In effect, for a mortgage debtor to fall within this scope of application, it will be necessary to comply with two types of requirements. On the one hand, the social groups that can benefit are large families, single-parent families with two dependent children, those with a child under three years of age or a disabled or dependent member, or in which the mortgage debtor is unemployed and has exhausted social benefits, or finally, victims of gender-based violence.

Likewise, in families that benefit from this suspension, income cannot exceed the limit of three times the Public Indicator of Multiple Effects Income. Furthermore, it is necessary that, in the four years prior to the time of the application, the family unit has suffered a significant alteration of its economic circumstances, in terms of effort to access housing.

The significant alteration of its economic circumstances is measured based on the variation of the mortgage burden on income suffered in the last four years. cve: BOE-A-2012-14115

OFFICIAL STATE BULLETIN
No. 276 Friday, 16 November 2012 Sec. I. Page 79878 Finally, inclusion in the scope of application involves compliance with other requirements, among which it can be highlighted that the mortgage installment results in more than 50 percent of the net income received by the entire members of the family unit, or that it is a credit or loan guaranteed with a mortgage that falls on the only home owned by the debtor and granted for the acquisition of the same.

The relevance of this regulatory provision is undeniable, as it guarantees that during this period, especially vulnerable mortgage debtors cannot be evicted from their homes, with the confidence that, upon completion of this period, they will have overcome the situation of difficulty in which they may find themselves at the current moment.

Additionally, this royal decree-law includes a mandate to the Government to immediately undertake the necessary measures to promote, with the financial sector, the creation of a social housing fund intended to provide coverage for those persons who have been evicted from their primary residence due to non-payment of a mortgage loan. This fund should mobilize a large stock of housing, owned by credit entities, for the benefit of those families that can only access housing if rents are adjusted to the scarcity of their income.

The adoption of the measures contemplated in this royal decree-law fulfills the notes of extraordinary and urgent need that are required in the use of the figure of the royal decree-law, fulfilling the requirements provided for in Article 86 of the Spanish Constitution, as its objective is to face, without further delay, the situation of enormous difficulty that families are experiencing who suffer daily the eviction of their homes and ultimately seeks to prevent this economic adversity from finally becoming social exclusion.

By virtue thereof, making use of the authorization contained in Article 86 of the Spanish Constitution, at the proposal of the Minister of Economy and Competitiveness, and prior deliberation of the Council of Ministers in its meeting on 15 November 2012,

I ORDER:

Article 1. Suspension of evictions on primary residences of specially vulnerable groups.

1. Until two years have passed since the entry into force of this royal decree-law, eviction shall not proceed when, in a judicial or extrajudicial process of mortgage execution, the primary residence of persons who find themselves in the situations of special vulnerability and in the economic circumstances provided for in this article has been awarded to the creditor, or to a person acting on their behalf.

2. The situations of special vulnerability referred to in the previous paragraph are:
   a) Large family, in accordance with current legislation. b) Single-parent family unit with two dependent children. c) Family unit in which a child under three years of age is part. d) Family unit in which any of its members has a declared disability greater than 33 percent, a situation of dependency, or an illness that credibly and permanently incapacitates them from carrying out a labor activity. e) Family unit in which the mortgage debtor is in a situation of unemployment and has exhausted unemployment benefits. f) Family unit with which one or more persons live in the same dwelling who are related to the holder of the mortgage or their spouse by kinship or affinity up to the third degree, and who are in a personal situation of disability, dependency, or serious illness that credibly and temporarily or permanently incapacitates them from carrying out a labor activity. g) Family unit in which there is a victim of gender-based violence, as established in current legislation, in the case that the dwelling subject to eviction constitutes their habitual residence. cve: BOE-A-2012-14115

OFFICIAL STATE BULLETIN
No. 276 Friday, 16 November 2012 Sec. I. Page 79879
3. For the provisions of paragraph 1 to apply, in addition to the situations of special vulnerability provided for in the previous paragraph, the following economic circumstances must concur:
a) That the total income of the members of the family unit does not exceed the limit of three times the Public Indicator of Multiple Effects Income. b) That, in the four years prior to the time of the application, the family unit has suffered a significant alteration of its economic circumstances, in terms of effort to access housing. c) That the mortgage installment results in more than 50 percent of the net income received by the entire members of the family unit. d) That it is a credit or loan guaranteed with a mortgage that falls on the only home owned by the debtor and granted for the acquisition of the same.

4. For the purposes of what is provided for in this article, it will be understood:
   a) That a significant alteration of economic circumstances has occurred when the effort represented by the mortgage burden on family income has multiplied by at least 1.5. b) By family unit, the one composed of the debtor, their legally non-separated spouse or registered partner, and the children, regardless of their age, who reside in the dwelling, including those linked by a relationship of guardianship, custody, or foster care.

Article 2. Accreditation.
The concurrence of the circumstances referred to in this royal decree-law shall be accredited by the debtor at any time during the mortgage execution procedure and before the execution of the eviction, before the judge or notary in charge of the procedure, by presenting the following documents:
a) Receipt of income by members of the family unit:

1. Certificate of incomes, and if applicable, certificate regarding the presentation of the Wealth Tax, issued by the State Tax Administration Agency regarding the last four tax years.
2. Last three received pay slips.
3. Certificate issued by the entity managing benefits, in which the monthly amount received in concept of unemployment benefits or subsidies appears.
4. Certificate accrediting social salaries, minimum insertion incomes, or analogous social assistance aids granted by the Autonomous Communities and local entities.
5. In the case of self-employed workers, the certificate issued by the State Tax Administration Agency or, if receiving the benefit for cessation of activity, the certificate issued by the managing body in which the monthly amount received appears.
   b) Number of people inhabiting the dwelling:
6. Family book or document accrediting registration as a registered partner.
7. Certificate of registration regarding the people registered in the dwelling, with reference to the moment of presentation of the accrediting documents and the previous six months.
   cve: BOE-A-2012-14115

OFFICIAL STATE BULLETIN
No. 276 Friday, 16 November 2012 Sec. I. Page 79880 c) Ownership of assets:

1. Certificates of ownership issued by the Property Registry regarding each of the members of the family unit.
2. Deeds of sale of the dwelling and of constitution of the mortgage guarantee and other justifying documents, if applicable, of the rest of the real or personal guarantees constituted, if any.
   d) Responsible declaration by the debtor or debtors regarding compliance with the requirements required to be considered within the scope of application of this royal decree.

Single Additional Provision. Social Housing Fund.
The Government is entrusted to promote with the financial sector the constitution of a social housing fund owned by credit entities, intended to provide coverage for those persons who have been evicted from their primary residence due to non-payment of a mortgage loan, when the circumstances provided for in Article 1 of this royal decree-law concur in them. This social housing fund will have the objective of facilitating access for these persons to rental contracts with rents assumable based on the income they receive.

Single Transitional Provision. Pending Procedures.
This rule will be applicable to judicial or extrajudicial processes of mortgage execution that had been initiated upon the entry into force of this royal decree-law, in which the eviction had not been executed.

First Final Provision. Competential Titles.
This royal decree-law is issued under the protection of what is provided for in rules 6th, 8th, 11th, 13th, and 14th of Article 149.1 of the Spanish Constitution, which attribute to the State exclusive competence over commercial and procedural legislation, civil legislation, bases of credit, banking, and insurance regulation, bases and coordination of the general planning of economic activity and general treasury and State Debt, respectively.

Second Final Provision. Entry into Force.
This royal decree-law will enter into force on the day of its publication in the "Official State Bulletin".

Given in Madrid, on 15 November 2012.
JUAN CARLOS R.
The President of the Government,
MARIANO RAJOY BREY cve: BOE-A-2012-14115 http://www.boe.es OFFICIAL STATE BULLETIN D. L.: M-1/1958 - ISSN: 0212-033X