The Call Option and the Directive 2014/17/EU

Abstract

Directive 2014/17/EU of the European Parliament and of the Council. of 4 February 2014, aims at protecting creditors in relation to credit agreements relating to residential immovable property. On the basis of this European framework, this paper analyses the feasibility of a purchase option as a security for a real estate loan. Purchase option lacks regulation in the Spanish Civil Code. Spanish scholars and case law distrust the use of purchase option as a security because of the prohibition of the comissory pact. Yet Community law advocates for easing legal mechanisms for reimbursement, including transfer of securities to the creditor. Therefore, the traditional disregard of the lex comissoria has little sense. On the other hand, Catalan and Navarre laws rule this institution which use as a security increases steadily.