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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 1239. Still unregulated after 8 years
Wednesday, December 3, 2014 @ 12:22 PM

It is eight years that we started our fight against all consequences of what it was essentially a problem of lack of regulation and discipline in several professional fields all related to Spain´s Real Estate Boom and Crush.

Our times´mentality makes difficult and unpopular to talk about discipline and regulations but it is just natural order. All in life has its features, principles and rules: we are under parameters and order. Punishments then comes from nature inmperative or from human´s agreement, but,  what is clear is that (1) if there are no rules, there is disorder and/or (2) if they exist but are breached, there are also fight and discontent so... why not to naturally accept them and live them out  thinking that they are for our joy an benefit?

So...: going to the off plan circus and disaster  of late years in Spain, some EOS members were very rightly  commenting today in one of my posts,

My two.cents:  four pillars which were weak and need, reinforcement and life:

- Lawyers regulations and discipline

- Banks regulations -- specifically on off plan buildings

 -Estate agents regulations

- Land Registry control over these rights.

Just to name possibly the main ones, some of you can come out with other ones...

Possibly, as Keith Rule has been demanding through his petition , the route is to make a new new Law 57/68. No big deal. This, will also makes a great contribution for Spain not to fall again in a false ecomomic growth (and subsequent thwack) based on lack of guarantees for many but for Banks IN CONTROL of just their own benefit.

New times: collaboration: all inspired by this natural principle of coexistence. If not followed: ruin and more ruin...

sadwink

Cheers!

Granada, Southeast Spain

 



Like 2




7 Comments


antifreeze said:
Wednesday, December 3, 2014 @ 11:33 AM

So right and long over due for a shake up - although in reality it should exist and be exercised in law.



ads said:
Saturday, December 6, 2014 @ 6:05 PM

Such wise words Maria, thank you.

But....
As for "other ones" there are also higher level aspects to consider, relating to the need to safeguard the rule of law in Spain.

1)Recognition of fundamental rights to effective judicial protection (i.e. recognition by Supreme Court to ensure appeal rights/admissions are permitted to effectively counter contra legem rulings, without compromising financial constraints on applicability).
2)Adherence to the principal of legal certainty (i.e. consistent judicial rulings with due regard to ALL articles of existing law Ley 57/68 without retrospective constraints that subsequently compromise enforcement of existing law ).
3)Adherence to the due process of law to ensure timely justice and enforcement (i.e. provision of time constraints and adequate controls to monitor major court delays and delays to judicial rulings which have led to compromising legal complexities).

If not followed then insecurity and mistrust will sadly remain.


ads said:
Thursday, December 11, 2014 @ 11:47 AM

Just to clarify, by "compromising legal complexities", I mean such things as developer asset stripping or developer going into administration in the very lengthy interim time periods whilst awaiting justice.

Also it should be clarified that any attempt to "cherry pick" Ley 57/68 by placing retrospective time constraints on applicability of this law, or non recognition of the requirement for a legal LFO to be in place at point of completion i.e. the mutually agreed completion date as defined in the purchase contract, both of which could lead to denial of inalienable rights, would surely go against the principle of legal certainty would it not Maria?


mariadecastro said:
Thursday, December 11, 2014 @ 12:01 PM

It would Ads


antifreeze said:
Thursday, December 11, 2014 @ 12:18 PM

If that is the case, why are the courts pro-longing the claims and accepting illegal contract extensions, by denying consumers their inalienable rights as stated in original contracts, agreed with/by lawyers?
Consumers have been cheated out of their money with Developers not keeping to the contractual obligations, publicity promises, facilities and dead lines for completions. Some going in to easy receivership after taking millions, as if that escape is legal and without any due compensation. They knew what they were doing - consumers were kept in the dark and only due to the Ley 57/68 exposure (thanks to Keith) is there any hope of a just fair finding to refund or compensate impoverished consumers. I dare say, no developer is forced into real poverty - and the legal system needs to recognise the credibility of WHY buyers and investors came to Spain int he first place - because it was deemed in legal commitment, the safest place to buy off plan.
The law was suppressed - and created thousands of victims. That in itself is illegal?



mariadecastro said:
Thursday, December 11, 2014 @ 1:33 PM

Antifreeze:

Regulating off plan building in Spain would help not also to protection of private rights of buyers but also to stopping money laundering and property speculation.

Cheers

Maria


ads said:
Thursday, December 18, 2014 @ 1:24 AM

Dear Maria,

All of these factors relating to regulation of the various professions associated with the conveyancing process, the requirement to adhere to rules, principles, parameters, will count for little if at the end of the day existing law is not consistently adhered to and enforced in a fair and timely manner by the Spanish judiciary.

Given the fact that more claimants are being encouraged to pursue their rights, is this not the time for good law firms to recognise a moral obligation to become organised, to retain statistical evidence, and report back these uncomfortable realities on behalf of their clients, to those responsible for monitoring these instances (European Commission?)

If not the situation will become even more untenable as more and more lawsuits are submitted into an already overstretched justice system.




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