August 6, 2010 at 8:38 pm #55795
THE SHOCKING TRUTH
LEY 57/1968 provides comprehensive protection for purchaser funds paid to the Promoter in advance for a property. The rights granted to the purchaser under LEY 57/68 are of a ‘Caracter de Irrenunciables’ (Inalienable Character) and are INDISPUTABLE.
However many persons and companies associated with the Real Estate and Construction Industry in Spain failed to comply with the requirements of LEY 57/68.
Some Promotors / Developers failed to comply with any or most of the requirements of LEY 57/68
Some Banks and Savings Banks are guilty of Gross Negligence and acted with a complete lack of professional due diligence. It must be remembered that these Banks and Savings Banks are supervised by the Banco de Espana and many also carry out their business in other countries including the UK.
Some Lawyers who were being paid by the Purchasers and had a legal duty to act in the Purchasers best interests failed to carry out the relevant checks to ensure their clients funds were protected at all times in accordance with LEY 57/68.
Some Estate Agents failed to carry out any checks on the Promotor or Developer prior to marketing the developments. Many also continued to advertise properties on developments where they knew the developer and funding bank were failing to comply with the requirements of LEY 57/68.
Some Estate Agents continued to entice purchasers by stating in their promotional material ‘BANK GUARANTEES INCLUDED’ when they knew that many of the clients they had already sold to on the exact same development had not received the legally required Bank Guarantees.
This is a shocking situation and many thousands of innocent purchasers are at risk of losing their hard earned money due to the negligence and greed of some Promotors, Banks, Lawyers and Estate Agents.
The Banks & Savings Banks were the ‘vehicle’ through which the illegal activity operated.
The Banks & Savings Banks who were funding the developers were happy to use purchasers ‘unsecured deposit funds’ to lessen the Banks exposure to the various developments.
The fundamental problem is that the Spanish authorities failed to ensure compliance with LEY 57/68. For many years’ developers, banks, agents and lawyers have been allowed to ignore the requirements of LEY 57/68.
Many of the lawyers and agents received much of their business from the developers and banks; therefore it was not in their interest to attempt to stop the illegal activity because by doing so they would be ‘biting the hand that feeds’.
Many thousands of innocent purchasers have been robbed by the corrupt developers and negligent banks, lawyers and estate agents.
The Banco de Espana has also failed to regulate and monitor the activity of the Banks & Savings Banks with regards to accepting off-plan deposits.
The Spanish legal system has failed to uphold the INALIENABLE RIGHTS granted to the purchaser under LEY 57/68.
The Spanish Government must also be held accountable due to the fact that for years they have ignored this problem and have failed to take the appropriate action.
The Banks, Savings Banks, Banco de Espana and the Spanish Government must collectively accept responsibility and must act immediately to ensure that by whichever means all purchasers who were not provided with the legally required Bank Guarantees receive a FULL refund of their deposit together with the addition of legal interest.
The Spanish Government together with the Banco de Espana must ensure that all those persons and entities who failed to comply with the requirements of LEY 57/68 and all those who were complicit in the illegalities are punished accordingly.
Legal action is now being taken by many purchasers according to LEY 57/68 Article 1.2 and justice must be done in these cases if Spain wishes to go some of the way to repairing its badly damaged reputation in relation to the Real Estate and Construction Industry.
August 9, 2010 at 2:53 pm #100295
Fully agree. Spain does not care about its reputation. The fact that an average Spanish Citizen does not see there is any problem.
September 25, 2010 at 8:17 pm #100902
The average Spanish citizen may not acknowledge that there is a problem, but there are also some Spanish citizens who are victims of the corruption in the real estate industry.
Everyone affected by the issue of Bank Guarantees needs to let their voice be heard and join the petition.
If the Spanish authorities wish to go some way towards rebuilding the reputation of their Real Estate Industry then they must take action. Mr Zapatero said in the European Parliament that he ‘Stands shoulder to shoulder with anyone who has had the wool pulled over their eyes in the real estate sector’.
These are just empty words if he does not back them up with some meaningful action.
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