THE CONSTITUTIONAL COURT REMOVES LEGAL BARRIERS FOR LARGE PROPERTY HOLDERS

The Constitutional Court has declared unconstitutional several articles of the Civil Procedure Law that required large housing owners to prove the economic vulnerability of occupants before filing eviction or foreclosure lawsuits. This decision eliminates the need to demonstrate such vulnerability and to undergo prior conciliation or mediation procedures, thereby facilitating access to justice for these property holders.

Context of the ruling and affected articles

The ruling, published in the BOE on February 28, 2025, responds to a constitutional appeal filed by the Popular Parliamentary Group. The affected articles include 439.6.c and 439.7 of the Civil Procedure Law, which obligated large landlords to prove the tenant's vulnerability and to have participated in mediation processes before filing a claim. Sections 1 and 2 of article 655 bis and article 685.2, related to mortgage foreclosures, have also been annulled.

Arguments from the Constitutional Court

The Court argues that these prior requirements imposed a disproportionate burden on large property owners, limiting their right to effective judicial protection. It also emphasizes that protecting vulnerable individuals can be achieved through other means, such as intervention by social services once the lawsuit is admitted, without the need to create obstacles to accessing justice.

Implications for the real estate sector

This decision has a significant impact on the real estate sector, especially for banks, investment funds, and large property holders, as it streamlines legal procedures to recover possession of properties. However, it also presents challenges for public administrations, which must now ensure the protection of vulnerable individuals without the previously established mechanisms.

Reactions and future perspectives

The ruling has sparked mixed reactions. While large landlords welcome the removal of legal barriers, social organizations and housing rights advocates express concern over the potential lack of protection for vulnerable people. Public institutions are now expected to strengthen support systems to balance the rights of owners and tenants within the new legal framework.