Legal tip 520. Yes, Spanish property is safe to buy now...
Thursday, May 5, 2011 @ 12:04 AM
Yes, do not get misled by the discourse.
Already built Spanish property is very safe to buy. It always has been. It is true that our system of Property Registration makes the third party good faith buyer have all safety when buying built ,registered property in Spain. I am not commenting on planning issued and Coastal Law here... which is a different matter as it involves Public Law.
Things are different in terms of guarantees when buying off plan properties.
There:
1) The funding Bank has the guarantees
2) The developer has the risk he has freely chosen by setting the business and
3) The poor buyer has all the risks the two above have unlawfully left him with. He, who is putting his personal money on it.
Very unfair. Specially when Banks who should have verified that the Guarantees existed, left people´s deposit unbcontrolled and without the necessary Guarantees. These same banks are now becoming the owners of the whole cake through the enforcement of their Mortgage-to-developers.
The old trick: do not open the "special account "and we will be free ( say the Bank Manager to his cousin, the property developer or viceversa). But tricks are tricks at the end and if well explained, taken into pieces to a judge, will certainly make him see plainly clear: Provision 1.segundo or Law 57/68 is undoubtedly simple: Banks have the role on ensuring the existence of the guarantees for the protection of buyers... under their risponsability.
At the end, Banks are the clear symbol of what society has been during the last decades: benefit above all, just rights no risponsabilities, but.... they need to pay.
Zahara de los Atunes, Costa de la Luz, by Asier Llaguno at Flickr.com