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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 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

 



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5 Comments


Anne said:
Thursday, May 5, 2011 @ 12:05 AM

Let’s look at this in a little more detail as I suspect it is sadly not that simple Maria .

Firstly, a corrupt developer should be made accountable (which at present they are not), and to do continued business with any corrupt developer (on completed developments) while many innocent folk are still fighting for justice against that developer, only perpetuates the problem, and acts as no disincentive to end their malpractice. More worrying it allows them to continue to compromise future purchasers.
Secondly, many developers are failing to meet their responsibilities of contributing financially to their community fees, and this debt ultimately impacts on new buyers as presumably they, like others within the community, will have to meet the deficit. Again the purchaser is compromised.
Thirdly, so long as the justice system fails to provide timely consumer protection from malpractice of any kind by developers/banks/whoever happen to be selling their completed properties, the purchaser remains at risk and is financially compromised by ongoing procedures (appeals/enforcements etc) , and once again this acts as little disincentive so long as the perpetrator fails to be made accountable.
Finally, so long as retrospective decisions are taken by Government, that impact on purchasers’ rights, (as in the case of the Priors and many others whose homes have subsequently been declared illegal), there is no security in the purchasing process.

Surely there has to be a fair and workable justice system in place before purchasers can feel “safe” in their purchase. They cannot live in the hope that everything will always be as required and should be protected by an effective justice system from the outset.



Ruth said:
Thursday, May 5, 2011 @ 1:29 AM

Yes Maria, Banks do need to pay, but who is going to make them? They do not provide Bank Guarantees, they are in colusion with the developers and they totally ignore Court sentences. The Banks are the winners all the way, they hold the 40% deposit for the house, they sit on it for many years gaining interest, when sentences are passed to pay out from the developers seized accounts they totally refuse. So they are the outright winners, they hold the deposit, they own the house and they have the power and the upper hand. Are there any honest Spanish Banks, is there anyone who can make them pay, obviously the courts can't, so as far as I can see there is only the Government, and they are turning a blind eye to all the malpractices going on in Spain, for lets face it they need the banks to be healthy especially in this current climate. We live in hope .............


Robin Corner said:
Thursday, May 5, 2011 @ 9:10 AM

Disagree with you Maria.

The cowboys are still about and the reputation of the Spanish property market stinks. It is NOT safe to buy Spanish prroperty and but nobody wants to anyway!


bob dunford said:
Thursday, May 12, 2011 @ 3:41 PM

WHAT ABOUT ILLEGALLY BUILT PROPERTY SCAMS.WHERE THE BUYER NEVER KNOWS UNTIL HE LIVES IN HIS HOUSE A WEEK OR TWO.WHEN THE ESTATE AGENT SHOWS THE BUYER A HOUSE.WHICH THE BUYER LIKES.THE SOLICITOR PUTS THE BUYERS NAME IN THE PROPERTY DEEDS.THE NOTARY SENDS OF THE DEEDS TO THE LAND REGISTRY.THEN SENDS THEM BACK AFTER TALKING TO THE LOCAL COUNCIL.THE NOTARY THEN STAMPS THE PROPERTY DEEDS .TELLING THE BUYER EVERYTHING NOW IS LEGAL.WHEN THE BUYER MOVES INTO HIS NEW HOUSE HE FINDS THEIR IS NO MAINS WATER .GOES TO THE LOCAL COUNCIL WHO TELL HIM HIS PROPERTY IS ILLEGAL.HE WILL NEVER GET MAINS WATER.WHEN HE TELLS THE LOCAL COUNCIL THAT THE PROPERTY HAS BEEN THROUGH THE SOLICITOR.NOTARY .LAND REGISTRY WHO TOLD HIM HIS HOUSE IS NOW LEGAL THE COUNCIL MAN LAUGHS AND SAID NEVER BELIEVE A SOLICITOR OR NOTARY ,THEY JUST WANT YOUR MONEY,YOU SHOULD ALWAYS GO TO THE LOCAL COUNCIL FIRST.NOW THERE ARE OVER A MILLION PEOPLE FROM BRITAIN,FRANCE.GERMANY SWEDEN.HOLLAND.IRELAND.WHO HAVE BEEN TO THE EUROPEAN COURTS.WHICH YOU MUST SEE IS A IS A LOT OF PEOPLE.WHO WOULD NEVER BOUGHT A HOUSE IF THEY KNEW IT WAS ILLEGALLY BUILT.THEY WOULD NEVER HAVE RISK THERE HARD EARNED MONEY,WOULD YOU. THIS CORRUPTION WHICH THE EUROPEAN CALL THE SCAM. .THE EUROPEAN PARLIMENT ARE NOW FIGHTING FOR US.THE MEPS FROM ALL THE ABOVE COUNTRIES HAVE BEEN LOOKING INTO THIS SCAM.AND REPORTING BACK.TELL ME WHAT DOES THE SPANISH LAW DO TO MAKE A HOUSE LEGAL.DO THEY DO ANY THING ELSE BUT CHECK THE PROPERTY DEEDS,CHECK WITH THE LAND REGISTRY.THE LOCAL COUNCIL.WHAT IS THE PROFF IN THE PROPERTY DEEDS YOU LOOK FOR TO MAKE A PROPERTY LEGAL THE SIGNING AND STAMPING OF THE PROPERTY DEEDS.ANDV TELL ING THE NEW BUYER THAT THE PROPERT IS LEGAL.OR IS THERE SOME OTHER THING THE SOLICITOR OR NOTARY HAVE TO DO. THE SPANISH LAW IF A HOUSE WHICH IS BOUGHT AND HAS THE PROPERTY DEEDS SIGNED AND STAMPED BY THE LAWYERS.IS THIS FULLY LEGAL.OR AS THEY SAY YOU CANT TRUST THIS,WHAT SHOULD A PERSON FROM ABROAD DO.WHEN BUYING A HOUSE IF HE CANNOT TRUST THE SPANISH SOLICITORS OR NOTARY.WHO YOU PAY FOR CHECKING THE PROPERTY OUT IN A LEGAL MANNER.


Marius said:
Friday, May 13, 2011 @ 11:24 PM

Maria really seems to be wrong about this one!


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