MADRID -- The Supreme Court has dismissed eight mortgage contracts that included Ground Clauses -- the controversial Cláusula Suelo that caused much unease last year among property owners on a mortgage loan (See Defining Cláusula Suelo) -- thus rejecting the bank's argument that the contracts were read at the Notary's office on signing the contract. However, the Court decided that the entity (Caja Segovia, now part of Bankia) breached its duty of transparency by not explaining the clauses properly to its customers taking out a mortgage. There are several other legal matters that have yet to be resolved in this case, about which we will be reporting as soon as they are. If you have a cláusula suelo in your mortgage contract, you would be well advised to contact the bank that holds it, or better still, contact your lawyer, who will explain things clearly and tell you what you can do to get it invalidated.
