With more and more sales taking place online, people are increasingly finding that cash is becoming an archaic concept. In fact companies anticipate that clients will want to pay via a credit or debit card, therefore businesses from family corner shops to multinational chains are making this process as easy as possible.

However, this new era of 'plastic money' has resulted in some companies imposing charges on customers. A small credit card surcharge to cover any costs incurred would be a little more understandable, but not only have some businesses been adding disproportionately large sums to credit card payments, they have also been punishing clients for using debit cards.

In what are difficult times for a great many beleaguered homeowners, news that the government has initiated a series of rulings that step up protection of mortgage holders will be eagerly received. Since they affect so many people, Spanish nationals, foreign residents and second homeowners alike, it is important to keep up to date with changes in the laws, and how they affect us.

On Friday July 1st Deputy Prime Minister, Alfredo Pérez Rubalcaba approved several measures aimed at improving the financial situation of mortgage holders. Under the new regulations, the personal income allowable to those involved in embargoes due to foreclosure proceedings increases from 700€ per month to 961€, plus an additional 192€ for each additional member of the household without income, thus creating a small but much-needed extra safety cushion.

MEP Diana Wallis, Vice-President of the EU Parliament, has worked hard to introduce legislation that will assist foreigners who have bought property in Spain. The new laws allow the purchasing procedure to be settled in the buyer's home country, where they will also be protected by that nation's legal system. This initiative has been set up by the European Land Registry Association and is being funded by the EU.

Piloted in Holland and Spain, the Cross Border Electronic Conveyancing (or CROBECO) project has enabled Dutch buyers to apply their own laws to the contract and apply to a Dutch court for compensation from the vendor, should it later be discovered that there are limitations on the property, such as retrospective planning laws. Pilot schemes involving other countries will be launched later in the year.

Spanish property owners are likely to find themselves with more money in their pockets, due to historic rulings by the courts in Seville and Leon, which upheld Legal Services Ausbanc's challenge to the reviled Clausula Suelo, or minimum clause. The latter prevents mortgage holders from benefiting fully from drops in the Euribor.

This minimum clause is among the small print written into many mortgage contracts, often without the knowledge of the holder. Its presence can have an extremely negative effect, since it holds the rate of repayments at an artificially high level and can make a big difference in your monthly mortgage repayments. Customers who have taken a mortgage at a rate of, for example, Euribor plus 1.5 points should be paying 2.5 per cent interest, but the inclusion of the minimum clause means that rates are often set from 3 per cent and upwards.

Given her experience of living and working in the UK, Raquel Perez is uniquely well placed to be aware of the myriad differences between Spanish and British law; what might be acceptable in Britain may well not be appropriate in Spain and vice versa. When dealing predominantly with British nationals, an up-to-date knowledge of the legal systems in both countries is therefore invaluable.

Perez Legal Group is pleased to announce a new collaboration with Wykeham-Hurford Sheppard & Son, a legal firm with three offices based in the south-east of England, and in particular with WHSS Law Consultant Ian Miller. The partnership will enable both legal firms to provide an even broader service for their clients; Perez Legal Group will be able to offer a direct link for their many British cutomers, while Wykeham-Hurford Sheppard & Son can assist their clients with interests in Spain by liaising with Perez Legal Group.

If you own an investment property the natural thing to do is to want to rent it out and make it work for you. Many homeowners who enter into the rental market however are not fully conversant with the commercial and legal framework underlying rental transactions. They approach the process as proud homeowners keen to earn some extra revenue in what they hope will be a relationship of mutual respect and benefit with the client.

Unfortunately it doesn’t always work out that way, as any businessperson will tell you from their own experiences of dealing with clients and suppliers. The majority of rental agreements are concluded satisfactorily, but a significant percentage falls prey to the many potential snags that can occur. These include poor maintenance or even outright damage to the property by tenants, unpaid bills and ultimately the need to evict troublesome occupants that are in danger of becoming squatters.

Such was the enthusiasm of holiday homebuyers during the Spanish property boom that many companies were able to cash in by offering homes off-plan. This initiative proved popular, since construction companies were able to draw up payment schedules that helped the purchaser to raise the funds in stages, meaning that the developers received regular injections of cash to finance completion of their projects.

When things went according to plan, this scenario worked well, enabling purchasers and builders to benefit from advantageous payment schemes. However, as Europe and the USA’s credit crisis worsened, some off-plan purchasers found themselves out of pocket, as incomplete projects meant that they were unable to sell or rent their property to cover their costs.

So what should you do if you find yourself in this position?

In an electronic age it has become increasingly important to protect the data of individuals and companies from possible misuse by unauthorised parties. We’ve all heard the stories of shady characters rummaging through garbage bags in search of discarded bank statements, or spam and so-called phishing emails attempting to lure or scare you into divulging your personal details. On television, the registration plates of cars are blotted out, as are the faces of those individuals who have not given their permission to be filmed.

In order to start a business in Spain, a Spanish company needs to be formed. Different documents need to be gathered and the following process needs to be adhered to:-

If you have accumulated two non paid receipts, you should talk to your Bank immediately with a view to negotiating with them the following:

• Setting a longer term to repay your mortgage and lower your payments.
• Granting a period of time where no mortgage payments need to be made
• Negotiating with your bank to pay interest only for 1 or 2 years
  

If none of these options work for you, you will have to consider giving the Property back to your Bank and in order to do this, you have to meet two conditions:

On March 1^st Raquel Perez was a guest on Mijas’s new 3.40 TV channel, offering advice on matters of inheritance. Appearing on News and Views Mijas, Raquel responded to questions on the subject put to her by presenter Karen McMahon. This topical programme is broadcast live at 14.00hrs and repeated at 20.10hrs, after which it is available on the station’s website www.mijate.com. Raquel’s interview was also broadcast on Radio Mijas at 107.7FM.

The Supreme Court has upheld the revocation clause included in rounding up the variable rate mortgages of Caixa d'Estalvis of Tarragona as abusive, and will have to repay the difference overcharged to its customers, according to the ruling last 1 December. 

In November 2010 we obtained a favourable judgement in favour of our clients from the courts of Spain for a deposit that was paid for the construction of a property.

Whilst Spain is often renowned for its slow and comfortable pace of life, when it comes to dealing with the affairs of someone who has passed away, the process is almost too fast!

Within 24 hours of a person's death, the civil registry must be formally notified using specific documentation.