The Supreme Court recently delivered Judgment 161/2026 of 4 February, concerning homebuyers—including purchasers of commercial premises—who took over an existing mortgage loan when acquiring a property from a developer.
The Civil Chamber recalls that the bank must ensure the purchaser has actual knowledge of the essential loan terms, particularly how interest is calculated. If this duty is not met, the interest term may be deemed not to have been incorporated into the contract. The loan may then continue without contractual interest, with a right to recover interest already paid together with the applicable statutory interest.
In the case decided, the purchasers took over a loan granted to the developer who sold them the property. However, the deed of sale did not state the interest rate or how it was determined, and there was no evidence that they had received a copy of the developer’s mortgage deed containing all the terms.
The Supreme Court therefore concludes that the bank cannot stand aside in these transactions simply because the original borrower was the developer. Where the purchaser takes over the loan with the bank’s consent, sufficient information must be provided to enable the consumer to understand the financial and legal burden being assumed.
The judgment accordingly holds that the contractual interest term was not incorporated and orders repayment of all sums charged under it, together with statutory interest from each payment. The remainder of the agreement stays in force, but without contractual interest.
This approach may particularly benefit those who purchased a home or commercial premises from a developer or seller and took over an existing mortgage.
If this describes your situation, Montelirio Abogados y Asesores Tributarios can review your case and assess whether proceedings against the bank would be viable to seek repayment of contractual interest and continued repayment of the loan without that interest.