PETITION STATEMENT TO THE EU PETITIONS COMMITTEE
31 MARCH 2009
This Spanish Property Scandal Petition, bears 792 signatures and personal experiences by petitioners, in their own words, over 191 pages. Peititoners are grateful for the hard work that has gone into compiling the Auken Report. However, we do feel that there are additional specific issues that need to be stressed.
Our Petition represents two distinct groups:
25% of petitioners are owners of properties in Spain who, after purchase, have been told their homes are illegal and now face possible demolition or hefty fines for 'regularization'. Many urbanizations have no mains water or electricity, and in some cases diesel for generators is no longer being paid for by the developer who refuses to finish the urbanization. Consequently, unfinished roads are unlit, and repeated burglaries are becoming more & more common. Residents of these properties include the elderly, the infirm, and young children. Serious Safety & Health issues are at stake here, which the respective Town Hall says is no responsibility of their own, although the residents have been paying their taxes. The worry, stress and despair these people shoulder everyday is deplorable.
75% of petitioners represent depositors of off-plan properties in Spain which are now deemed illegal, and are forced to undertake expensive and lengthy litigation to try & retieve their money, but who have the legal right to refuse to complete on a property without a Habitation Licence. Some properties have never been built. Their money has been held for up to seven years by developers and real estate agents, who have knowingly built and promoted illegal dwellings, and have broken Spanish Laws. Banks in Spain are now refusing to honour legally-binding Bank Guarantees. As detailed herein, individual petitioners and collective groups face losing hundreds of millions of Euros, while their legal costs continue to escalate with their fight.
The plethora of abuses & problems are vast, but one major issue that unites all petitioners is the fact that they are all burdened with continuing legal fees; whether this be for appeal cases during litigation against developers, or fees for 'regularizing' their homes in Spain, homes that they were assured of at the time of purchase, by their own lawyers, were fully legal.
Purchasers of legitimately acquired property should not be penalised for the criminal actions of others that, unbeknown to them at the time, enabled the transaction. But this is exactly what is now happening. If the lawyers engaged by the majority of petitioners had been doing their jobs with the Professional Code they ascribe to, most of us would not be in the complex mess we find ourselves today.
The Spanish press has recently labelled 11 towns In the Malaga province alone, as 'corrupt'; namely Marbella, Alhaurin el Grande, Estepona, Manilva, Gaucin, Competa, Tolox & Ojen, Ronda, La Vinuela, Sayalonga. 18 of the 29 mayors are under investigation for real estate corruption. Many petitioners believe that the Spanish Government should be held accountable. We request that a special Fund be established, taken from EU funding to Spain, to facilitate the Rights of the victims of these scandalous abuses.
The Agent & Lawyer Complaints Document which forms part of this petition, clearly demonstrates and undeniably proves the collusive Triangle of Lawyers, Agents & Developers. This separate Document has been specifically compiled to facilitate identifying this systematic abuse. The deplorable problems created by the neglect and dishonesty of a number of lawyers in Spain and the failure of their respective Colegio de Abogados to acknowledge our serious complaints, must be addressed. Lawyers have a legal duty to uphold their Professional Code of Conduct & Ethics & practice, to advise their clients according to the Law. Many have failed miserably, and their true clients have proved to be the developers. Purchase Contracts littered with illegal clauses, were not brought to the buyer's attention. The majority of petitioners were never given Bank Guarantees, and had no idea at the time of purchase that since 1968 it has been the Law in Spain for developers to provide this Bank Guarantee, free of charge. Indeed, regarding many of the properties, their building licences had already been revoked long before the agent and developer promoted and sold them. Petitioners now believe that only by studying Spanish Law themselves to determine their Rights, can they make any progress, as they have very little faith, if any, in their string of ever-changing lawyers. Many petitioners would like to sue their original lawyer, but are unable to find another lawyer in Spain who will take the case on.
This petition also details information from people who have completed on properties and paid for them in full, but do not have their Deeds. They have discovered that the builder has since taken out mortgages on these same properties. The Agent/Lawyer Document identifies this fraud and those who have repeatedly been involved. It must also be noted that one prominent agent listed has also promoted similar irregular properties in Bulgaria, via the same listed Spanish lawyer. Another concern is that Real Estate Agents have been allowed to target people arriving at Spanish airports even before they have collected their luggage & passed through the final customs check. Judicial Courts in Spain have become overloaded with Appeal cases by developers. The same developers who have criminal charges against them with regards to said properties. It is atrocious that these Appeals are allowed, which only adds to the frustration & financial burden for petitioners. Indeed, many have been called to attend a hearing to be questioned, and have travelled to Spain, only to hear hours before that the developer's lawyer has postponed the hearing. Hearings are being postponed for years, giving more time for said developers to hide their assets, or declare bankruptcy. Judges are giving conflicting rulings on identical cases. Petitioners are being sent from pillar to post. Astonishingly, developers are winning court cases in favour of the illegal properties they have built, properties which have no Habitation Licence, properties which, according to Spanish Law, are illegal to inhabit.
This Petition was also delivered to the British Prime Minister Gordon Brown at Downing Street on 12 March 2009, and we ask that the Petition Letter to Mr Brown be read in conjunction with this petition. On 23 March 2009 the British Ambassador to Spain, was interviewed on the BBC. Some of her comments are worrying, as they mirror those of the very people who refuse us justice; to quote her own words: "Spain is a big and complex country and different regions have different legislation, so if you go and live in Valencia different rules may apply from if you go and live in Murcia".
Whatever the region in Spain, whoever the Mayor, or political persuasion, every region must be bound by EU Rules & Treaties, & the Human Rights Act.
We trust that you will continue to work towards ensuring that these breaches & abuses be rectified. Thank you.
Sir Robert Atkins MEP, Marcin Libicki - EU Petitions Committee Chairman, and Michael Cashman MEP. Photo taken 31 March 2009
The Auken Report can be read in full here:
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&reference=A6-2009-0082&language=EN
MEPs adopted the report with 349 votes in favour, 110 against and 114 abstentions. The EU Press Release following the voting of the Auken Report can be read here:
