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21 May 2008 9:20 AM:

There are indeed many abuses (just in one complex)! It seems to be common practice on this island for the Explotación company to make it difficult for owners wishing to sell. They do not allow prospective buyers to view the property except in the weeks which are allocated to the owner. I know of one case in our complex where, in order to sell, the owner paid 3000 Euros to release the apartment from Explotación. It was then sold and the buyer wanted private use of the apartment which should have been OK, but the administrator (yes, Herminio) tried to charge the new owner 3000 Euros to take the apartment out of Explotación! After intervention of the buyer's lawyer he backed down.

Roberto:
      " the statutes are legally binding,"
In general, yes. But my lawyer can find two reasons why these fail.  First, the statutes are not registered at the land registry and therefore they are not an integral part of the escritura. It is not therefore deemed that an owner has seen or agreed to them. Second, as I said earlier (according to my lawyer who might just be telling me what I want to hear) the statutes cannot take away rights which are specifically granted in the Codigo Civil. I'm not familiar with the Codigo Civil but he implies that it gives owners of property the right to use it or to allow others to use it.

With regard to letting... this is a thorny issue. The Canarian ley 7 /  1995 sets out to protect the hotel business from "unfair" competition and makes illegal any letting of property to tourists by private individuals. It came into force in 2001 and so far seems only to have been counterproductive - there are far more private holiday lets in the canary islands now than ever before.Thousands are advertising openly and as far as I can find out, none have been prosecuted. That's not an excuse for breaking the law though! So even though we do allow other people to use our apartment, they do not pay rent for it.

Thread: Comunidad corruption problems

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20 May 2008 10:02 PM:

Thanks, Karensun, Morerosado, Maria and Roberto. I guess that the apparently open-ended expenses arrangement was voted on long ago. The complex was built in 1975 and since then has had only 2 presidents I believe.  I could ask the administrator when I see him but I doubt that I'd get a straight answer.

I did read the translation of the Horizontal law earlier today after finding a reference to it on a post in this forum. There's a lot to take in there and I'll read it again later.

If, as Karen says, the administrator is not under any obligation to distribute a message or letter from me to all owners, then I'm a bit stuffed for now. Any more ideas for how to get in touch with the other owners?

I'll expand a bit on the threatening letters: It's a complex registered for tourism and just under 50% of the studios are in the Explotación. There is a rule in the Statutes which says that the studios may be occupied by the owner or their close relatives or may be put into the Explotación. No other occupants are permitted!  According to our Spanish lawyer, this rule can't be enforced because it is at odds with the Codigo Civil.  The reception staff go round regularly knocking on doors to see if people are staying in the private studios. If they find them occupied and not by the owner then a threatening letter is issued to the owner. Here's an example letter that was copied to me from another of the Brit owners:

Dear Mrs Wxxxxxx:

The intention of this letter is to inform you, that your illegal activity renting out your apartment C-22x, are under investigation of Tax Department in Las Palmas, for income tax, vat, and the tourist authorities are looking for the security of your clients. We believe the authrities will have the sufficient prove to go against you. If you do not stop this illegal activity, Tax Authorities in your home country will automatically be informed of your activity.

It is further, our duty to inform you that Puerto PIata's general security licence for your clients and damage to a third person caused by your clients will not be cover by our general insurance as your app. are rented out illegal and without any approved tourist licence.

We off you the possibility to come back to Explotaciones Puerto PIata S.L. the legal company to rent the apartments in Puerto Plata to tourists; you will get some money, last years 2.271Euro - 25% tax, but first we pay your quote as a cost, and you avoid to have tax problems.

If you consider this offer, please contact our Director Hermlnio Marlínez, to discuss the future contract

(I've left the English as written which is a little unclear in places but I've added one or two mis-spellings so that google won't offer this when someone is seeking info about the complex or the "director". )

It's interesting that the "director" of the Explotación is the same person as the administrator of the comunidad.

I've actually received two copies of that letter which were sent to different owners. The last threatening letter sent to me was a little less strong than that. One of those owners is a single retired lady who was really upset by it, and the occupant was not renting the studio at all. It was a friend of hers.

This message was last edited by BenF on 5/20/2008.
Thread: Comunidad corruption problems

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20 May 2008 12:00 AM:

Hello folks. I’ve just joined this forum. We have a studio in a holiday complex in Gran Canaria and I need some advice.

First, here’s the background:
We bought a studio 2 years ago in a large complex (300 studios, approximately 200 owners). We knew at the time that the Quote (community charge) was high (over 170 euros per month) but I was told it was temporarily high due to some major repairs and I believed it. The rate is permanently high and now I know why it’s high.  The average quote for similar complexes in the same area is just 90 Euros per month.

The Administrator is an owner of several of the studios (that apparently allows him to act as administrator without any qualification) and he has had that position for over 20 years. He draws a salary of approximately 60,000 Euros per year (estimate based on the published administrative personnel costs (E108,000) split between Administrator and Accountant (the two administrative personnel).

The President, Vice President and the 3 other board members enjoy all-expenses-paid trips to Gran Canaria two or three times per year at our expense for their Board Meetings.

I don’t know what other financial irregularities go on but I know that the examples above are legal. The President and administrator are very secretive. They are crafty too. They announce the General Assembly with just a few days notice knowing that few will be able to get to the meeting. If there is any dissent voiced at the meeting, the minutes are written in such a way as to make the dissenter look stupid.

It is quite difficult to get to know who the other owners are, but I’m in regular contact with about 6 others. All of them say that they don’t want to get into the politics of the place, they just want to sell and to get out (there are an awful lot of these studios for sale currently - I was offered one recently for 59,000 Euros which is painful after we paid 82000 for ours). Nobody can sell because the problems of the complex are locally too well known. But I digress. Many of the owners are elderly, they have no idea that the quote is abnormal, they rarely visit and they give their proxy votes to the president.

I did manage to get to the General Assembly last year and 60 owners were present. That gives some indication of the level of dissatisfaction and yet the Board won all the votes because of the proxy votes.

During our two years, there has not been any election for president or officers. Nobody has put themselves forward. I suspect that’s mainly apathy and old age but also fear.  I have personally had two letters from the administrator threatening court action against me and I’ve received another two threatening letters. Of the 6 other owners I’ve spoken to, 5 have also received threatening letters. I won’t go into details of the threats here but they relate to alleged infringements of the community rules.

What I’m planning to do
I need to get the owners talking to each other. To have a channel of communication. That way we can compare notes. We can reassure each other that we are not the only ones getting threatening letters. We can find someone to challenge for the post of president get a professional administrator. But we can only do it by acting together and currently, the corrupt administration have the upper hand because we don’t know who the other owners are.

I have therefore set up a forum (much like this one) and next week, I will present the administrator with a letter in 3 languages to be sent out to all owners, inviting them to take part in our online forum. I was recently speaking to the president of another complex and she told me that any member of the community has the right to write a letter to all other members.

The questions
I know that the administrator will attempt to prevent me sending the letter to all the owners. It is he who has the list of names and addresses. Can anyone refer me to the law governing this? If I have a copy of the law in Spanish to show him then it will be harder for him to argue. I presume that I will have to pay for somebody’s time and for postage. Any pointers to what would be a reasonable charge for this would be welcome.

And… I know that it’s going to be an uphill struggle to get the apathetic majority off their backsides. Any advice would be welcome. I need to make that letter really persuasive.



Thread: Comunidad corruption problems

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