Foreclosure on your home: it can be avoided with a lease agreement

In the case of a lease of the property, the creditor may bring a revocatory action (azione revocatoria) but must prove the tenant’s bad faith.

This was clarified by the Court of Padua, in its judgment of 12 January 2016, no. 93.

The case

A bank commenced enforcement proceedings (pignoramento) against a customer who had failed to comply with the obligation to repay a mortgage loan; however, after the enforcement had begun, the latter entered into and registered a lease agreement on the property.

The bank therefore brought proceedings against both the landlord and the tenant who, according to the bank’s submissions, was aware of the service of the attachment on the defaulting customer.

The decision

The tenant succeeded in proving in court that, before service of the payment demand (precetto), he had paid by bank transfer the rent for the entire term of the lease, a contract that, however, was registered only after service of that demand.

The bank’s claim was dismissed for lack of evidence, since it had not managed to prove the suspicion that the lease was a sham, that is, concluded to obstruct the enforcement, nor that the tenant knew of the attachment of the property and had nevertheless fraudulently entered into the contract with the landlord.

Source: http://www.diritto.it/docs/5090940-pignoramento-della-casa-si-pu-evitare-con-un-contratto-di-locazione?source=1&tipo=news