Cancellation of promoter's mortgage in Spain

Hi

We will be completing on a new apartment in Spain in the next month or two. We have the option of taking over a promoter's mortgage for the apartment. The mortgage isn't bad but I feel we could do better from an alternative bank. I had assumed that we would need to pay a cancellation fee for the promoter's mortgage in order to take out the alternative loan. However, on doing some research and talking to some people involved in property in Spain, it appears that it is against Consumer Law for the promoter to pass the cancellation fee onto the purchaser (even though many small developers include such a clause in contracts). Our legal advisor seems reluctant to address this matter and has advised that we pay it as otherwise the developer may refuse to complete on the apartment and hold our deposit. Has anyone any info on this subject? Also I hope my posting will be useful to those that are thinking of buying new apartments in Spain.

Spanish Property Insight has a forum dealing with this type of question.

[broken link removed]

Hi Duplex

Many thanks for the link which is to a very useful website. Unfortunately, I don't think it really answers my question. It confirms that it is indeed against Consumer Law for the promoter to pass on the cancellation fee to the purchaser and we shouldn't have to pay it. However, it doesn't address how the purchaser should tackle the issue and what happens if the purchaser refuses to pay it. Our legal advisor (who we feel may be taking the easy option) suggests paying the fee and later looking to reclaim it through the courts. I can't believe that this would be necessary. My thinking is that if we refuse to pay the fee at closing then surely the Notary can't look for us to pay an illegal fee to the developer ... I hope! I was wondering if stalemate then ensues what happens with our deposit? On a matter of principle I would prefer to lose the apartment rather than pay this charge. However, I want to safeguard against losing our 30% deposit. Anyway I would appreciate any views. I will also post a message at the link provided.